EPCRS – Employee Plans Compliance Resolution System – Paul Gaukin CPA

sign that says retirementThe IRS established the Employee Plans Compliance Resolution System or EPCRS to help qualified retirement plan sponsors correct technical and administrative problems with their plans thereby retaining tax favorable status. This basically gives business the opportunity to stay in compliance with the IRS in regard to their qualified retirement plan and not have to run into unnecessary penalties.

EPCRS Components

There are three components of EPCRS, these include:

1. The Self Correction Program or SCP – This permits plan sponsors to correct certain failures of their plan without having to contact the IRS directly.

2. The Voluntary Correction Program or VCP – This permits plan sponsors to pay a fee to the IRS and receive the Service’s approval for correction of plan failures prior to an IRS audit.

3. The Audit Closing Agreement Program or (Audit CAP) – This permits plan sponsors to pay a fee to the IRS and correct a failure of the plan while the plan is under audit by the IRS.

You can find out more information including eligibility, definitions, and general principles about the EPCRS by reading Rev. Proc. 2008-50.

About Paul Gaulkin CPA

Paul Gaulkin is a Certified Public Accountant and enrolled with the U.S. Treasury to practice before the IRS. Mr. Gaulkin possesses unique technical knowledge in the process of securing relief for taxpayers nationwide with IRS and State tax problems. With an accounting degree from Florida International University, he is able to transform complex tax and accounting problems into easy to understand solutions.


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