What to Do If Your Plan Is Audited

The best preparation for a plan audit is to have an ongoing compliance procedure in place. Your procedure should identify who is responsible for overseeing your plan’s compliance activities and who will communicate with the IRS if your plan is audited.

If you have outsourced any or all plan administration to a TPA, your TPA should be able to both oversee compliance activities and communicate with the IRS. For example, PlanConnect^SM, a TPA and AXA Financial subsidiary, offers Connect²Comply, which continually monitors your plan to ensure that it is in compliance with the changing IRS and DOL regulatory environment. And if your plan is audited by the IRS, PlanConnect^SM will provide the resources and support you need.

However, if you are not working with a TPA, you should designate someone in your organization to handle these responsibilities. Your compliance coordinator, whether internal or external, should maintain a list of whom to contact at each of your plan’s investment providers to obtain any additional information that may be needed during an audit.

Audit Closing Agreement Program (Audit CAP)

Audit CAP is for violations discovered by the IRS while your plan is being audited. If the IRS uncovers a violation and your plan faces possible disqualification, you may be given the opportunity to correct the violation and potentially pay a penalty, which is usually a percentage of the tax that would be due if the plan were disqualified.

For more information on Audit CAP and/or other IRS compliance resolution programs, consult your AXA Advisors financial professional.

GE 44470 (rev. 3/09)