Items to Note in IRS’s Fall 2006 Edition of Employee Plans News

In IRS's Fall 2006 Edition of the Employee Plans News: 1. Michael Julianelle (Director, EP Examinations) talks about how EP examinations will generally take place at the employer's place of business. However, exceptions will be made if: The agent's presence…

In IRS’s Fall 2006 Edition of the Employee Plans News:

1. Michael Julianelle (Director, EP Examinations) talks about how EP examinations will generally take place at the employer’s place of business. However, exceptions will be made if:

  • The agent’s presence would disrupt the business operations or
  • There is a lack of office space to perform the audit.

Practitioners have generally objected to this practice of IRS coming to the office for an EP examination for a number of reasons, two of which the IRS has noted it will make an exception for. However, there are other concerns (such as HIPAA privacy in a health-related business, as one example) and IRS goes on to note in the Newsletter that:

If it makes better business sense to conduct the examination at a location other than the taxpayer’s place of business (for example, if the agent’s presence would disrupt the business operations), then the taxpayer or their authorized representative may submit a request outlining the reasons. If this is approved, the agent will request an opportunity to conduct a walk-through of the business premises and an opportunity to direct questions to the taxpayer to resolve questions regarding business operations.

2. Employers will want to note the IRS’s Top Ten Tips to Prepare for an Efficient Audit. (Employers can use this as a sort of quick “check-up” even if they are not under audit.)

3. IRS notes that it has posted two new Quality Assurance Bulletins:

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