Private Pensions. IRS Can Improve the Quality and Usefulness of Compliance Studies.

摘要

To encourage employers to establish and maintain pension and savings plans for their employees, the federal government provides preferential tax treatment under the Internal Revenue Code (IRC) for plans that meet certain requirements. In fiscal year 2002, these tax preferences for employer-sponsored pension plans are estimated at about $88 billion and represent the largest federal tax expenditure, exceeding those for either home mortgages or health benefits. The Internal Revenue Service (IRS) conducts audits and other enforcement and research activities to ensure that tax-qualified pension plans satisfy applicable requirements in exchange for preferential tax treatment. IRS monitors plan adherence to requirements primarily through audits but also through periodic compliance studies. Compliance studies are conducted by IRS to better design and implement enforcement activities, such as targeted plan audits, and provide information that IRS can use to inform pension plan sponsors and administrations about key aspects of noncompliance.