Does anyone have any current experience with Audit CAP sanctions for EGTRRA non-amenders, not in the DL context? There are some posts on the board indicating that the sanction may be about double the amount in the table in the latest EPCRS guidance, and I am wondering whether this seems to be the typical opening bid. The guidance just says that the sanction is expected to be larger when a non-amender situation is identified through an audit vs. the DL process. Anyone have much success in getting the Service to back the sanction down through negotiation or do they tend to stick with the opening bid?

Much obliged, fellow practitioners of the deadly arts of ERISA.

We recently closed an IRS audit through the audit cap program. In our case, the Plan Administer signed the Automatic Rollover amendment 6 months late.

The penalty was assessed at $10,000. This amount was more than the amount listed for non-amenders identified through the DL process. This plan had 77 participants.

The audit otherwise went well. No other issues or problems were identified. We used a seasoned CPA who was very experienced with negotiating with the IRS.

Good luck to you.