The update is significant for the financial reporting and compliance requirements it presents to businesses across all sectors.
Through the VCP, the IRS offers a way for companies not currently undergoing an IRS audit to remedy errors in their retirement plan documents.
Verification letters are often required in application processes that can be of special significance to client’s life. However, in responding to a third party verification, a CPA may violate professional standards.
Employers must routinely make adjustments to their defined contribution retirement plans in order to stay in compliance with the IRS.
It’s more important than ever for employers to determine that their benefit plans adhere to Department of Labor and Internal Revenue Service regulations as these regulatory bodies have become better at identifying businesses that fail to comply with fiduciary responsibilities. That means more and more benefit plan administrators are being hit with fines that can total up to $1,100 a day.
The term “audit” gets used liberally when businesses need to provide financial statements to outside parties, but an audit may not actually be what many businesses need to meet their financial requirements.