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RETIREMENT PLAN SPONSORS SHOULD TAKE ADVANTAGE OF NEW IRS VOLUNTARY COMPLIANCE RESOLUTION PROGRAM AND AVOID PENALTIES: COOPERS & LYBRAND

RETIREMENT PLAN SPONSORS SHOULD TAKE ADVANTAGE OF NEW IRS VOLUNTARY COMPLIANCE RESOLUTION PROGRAM AND AVOID PENALTIES: COOPERS & LYBRAND
 NEW YORK, Nov. 11 /PRNewswire/ -- The recently announced IRS voluntary compliance (VCR) program, designed to encourage sponsors of qualified retirement plans to correct operational defects, provides an opportunity for companies to avoid future harsh penalties, says Coopers & Lybrand, the international accounting, tax and benefits consulting firm.
 Under the VCR program, eligible sponsors may voluntarily correct operational defects under qualified retirement plans and the IRS will issue a compliance letter indicating that the plan is in conformance with the qualification requirements.
 While no monetary sanctions will be imposed on employers that voluntarily come forward and make full correction for all years in which the operational defects exist, employers will have to pay a fixed fee ranging from $500 to $10,000, depending on the size of the plan.
 "A steady barrage of complex regulatory requirements, the downsizing of human resource departments and decentralization of day-to-day plan administration make it highly likely that virtually all qualified plans have experienced some operational deficiencies in the past," says Barry I. Cosloy, a partner in Coopers & Lybrand's Human Resource Advisory Group. With limited resources to enforce operational compliance, the IRS is encouraging plans to address administrative requirements voluntarily.
 "In announcing the VCR program, the IRS made it clear that the penalties will be severe for defective plans. Thus," he concludes, "the IRS is giving plan sponsors an opportunity to clean up past problems, install strong controls and procedures going forward and avoid disqualification."
 -0- 11/11/92
 /NOTE TO EDITORS: Coopers & Lybrand's benefits experts are available to discuss this new program and how it will affect all companies -- large and small/
 /CONTACT: Amy J. Goldberger of Coopers & Lybrand, 212-536-3256/ CO: Coopers & Lybrand ST: New York IN: FIN SU:


GK-TS -- NY069 -- 9836 11/11/92 15:34 EST
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Publication:PR Newswire
Date:Nov 11, 1992
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