IRS issues field directive on payment of CAP sanctions from trust assets
Article Abstract:
The IRS Employee Plans Division has released guidelines to regional compliance chiefs on when the IRS may accept sanction payments under the Closing Agreement Program (CAP) from qualified plan trust assets. The CAP was designed as an alternative to disqualification of plans that are found to have defects. Generally, sanctions should not be paid from trust assets, but use of trust assets may be appropriate when the employer is unable to make payments, when plan disqualification will disproportionately burden nonhighly paid employees and when most of the tax liability belongs to the trust.
Publication Name: Tax Management Compensation Planning Journal
Subject: Law
ISSN: 0747-8607
Year: 1995
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DOL institutes Delinquent Filer Voluntary Compliance Program (DFVC)
Article Abstract:
Administrators of pension and welfare benefit plans can correct failures to file Form 5500 with the IRS and the Dept of Labor (DOL) under the DOL's Delinquent Filer Voluntary Compliance Program (DFVC). Plans can be brought into compliance by filing Form 5500 or 5500-C with the IRS and paying a pre-set penalty to the DOL. Both the IRS and DOL levy penalties for failures to file. The DOL penalty has been set at $1,000 per day, but under the DFVC maximum penalty amounts have been set.
Publication Name: Tax Management Compensation Planning Journal
Subject: Law
ISSN: 0747-8607
Year: 1995
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Ten percent early withdrawal penalty generally applies, no matter how sympathetic the facts may be
Article Abstract:
IRS private letter rulings demonstrate the strict application of the 10% penalty withdrawal rule for early withdrawals from IRAs and qualified plans. The unusually compelling facts in Private Letter Rulings 9818055 and 9821056 were not enough for the IRS to create equitable exceptions to the penalty rule under IRC section 72(t)(1). Death or disability remain the only circumstances where the penalty will not be applied.
Publication Name: Tax Management Compensation Planning Journal
Subject: Law
ISSN: 0747-8607
Year: 1998
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- Abstracts: DOL issues class exemption for plan asset transactions determined by in-house asset managers. Employer's direct payment of investment management fees and compensation on qualified plan's behalf are deductible under section 162 and are not plan contributions
- Abstracts: Selected issues respecting stock based compensation schemes. MD & A, forward-looking statements and related disclosure issues
- Abstracts: DOL issues Family and Medical Leave Act regulations. DOL litigates first FMLA case unsuccessfully. Former employee may sue supervisors as individuals under FMLA
- Abstracts: Remedies for unlawful discrimination. Questions on part-timers' pension rights referred to ECJ. No discrimination against part-timers in over-time rules
- Abstracts: Ethical issues confronting labor arbitrators; is a recent court definition of fraud too broad? The NAA: looking for a few good arbitrators