When the IRS audits a retirement plan, it expects the plan
sponsor to produce a plan document and amendments that have been
signed by the relevant fiduciaries. Except under extraordinary
circumstances, an unsigned plan document will not suffice.
The IRS recently reiterated this position in a memorandum issued
by the Office of Chief Counsel. It did so out of concern that
sponsors might misinterpret a Tax Court ruling in which the IRS was
told it could accept some unsigned documentation, reversing a
decision by the IRS to disqualify a plan whose sponsor failed to
produce a signed plan document during an audit.
The case
In Val Lanes Recreation Center v. Commissioner, the
employer could not produce a signed plan document as requested by
the IRS during an audit. The employer instead provided an unsigned
one. The IRS sought to disqualify the plan for, among other
reasons, failure to produce a signed plan document or
amendments.
