“IRS Develops Section 409A Audit Information to Indentify Exam Issues in Years 2006-2008”
BNA Tax Management Weekly Report, November 5, 2008
Joseph Adams commented on two documents that the Internal Revenue Service (IRS) has developed to help its agents examine nonqualified plans subject to Tax Code Section 409A, including guidelines to help develop information document requests (IDRs) for cases with potential Section 409A issues during the years 2006-2008. Likening the IDRs to “an information gathering process” to identify areas of noncompliance, Mr. Adams said the IRS is possibly following the same audit development initiatives used to gauge compliance with other Code sections, namely to identify issues and common violations and to train field agents. He added his hope that the IRS audits will focus on “big ticket issues” and not “esoteric issues that minds differ” over concerning interpretation.