Mitigating Audit Risks and Maximizing
Opportunities with Your Employee Benefits
Louis F. LiBrandi
Principal
Employee Benefit Services Group
llibrandi@odmd.com
February 27, 2012
Garrett Higgins
Tax Partner
Exempt Organizations
ghiggins@odmd.com
Agenda
I.
History of Employee Benefit Plans, Revision of Form 990 and
Additional Background Information
II. Increased Scrutiny of Compliance and Reporting By the IRS,
DOL, the Attorney General and other regulatory / watchdog
agencies
III. Reporting Requirements
•
•
Employees Plans – Form 5500
Exempt Organizations – Form 990
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Agenda (continued)
IV. IRS Compliance Checks
•
•
Employee Plans
Exempt Organizations
V. Examination and Investigation Issues
•
•
•
401(k) Plans
Cafeteria Plans
501(c)(7) Social Clubs
VI. Self Audit and Correction
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History of Employee Benefit Plans,
Revision of Form 990 and
Additional Background
Information
I. History and Background
How did pension plans and employee benefit plans start
•
1800’s – The earliest pension plans started in the late 1800’s – (AMEX 1875)
in the railroads, banking, and utilities industries
•
1920’s – Insurance
administer plans
•
1940’s – Wage stabilization and price controls. Unions began to negotiate
fringe and pension benefits for employees
•
1950’s and 1960’s – Unions were using the plans assets for purposes other
than the intended purposes
•
1963 Studebaker pension plan failure raises government and workers
attention
•
Culminated in the passage of the Employee Retirement Income Security Act
of 1974 (“ERISA”)
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companies
5
and
group
products
began
to
I. History and Background
(continued)
Revised Form 990 – Overview
• On June 14, 2007, the IRS released redesigned Form 990
• First major revision to Form 990 since 1979
– Old form failed to keep pace with changes in tax law
– Failed to meet IRS compliance interests
– Failed to meet needs of the states
• On December 19, 2007, the IRS released its final version
• Organizations began using this form for the 2008 tax year (returns filed in
2009)
• Instructions significantly revised
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I. History & Background (continued)
IRS’ Guiding Principles for Revision
•
Enhancing Transparency
•
Promoting Tax Compliance
•
Minimizing Burden of the Reporting Organization
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Important Statistics
•
There is close to $5 trillion dollars in pension plan assets.
•
There are over 708,000 retirement plans and 2.8 million health plans and a
similar number of other Welfare Plans (life, disability, etc.) covering over 150
million workers and their dependents. All of these employee benefit programs
are regulated under the watchful eye of the Federal Government.
•
IRS Agents:
•
•
–
EP – 400
–
EO – 900
IRS Completed Examinations:
–
EP – 10,000
–
EO – 12,000
DOL - EBSA recovered over $1 billion dollars in FY 2010 resulting from their
investigations.
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Increased Scrutiny of Compliance
and Reporting By the IRS, DOL, the
Attorney General and other
regulatory / watchdog agencies
II. Increased Scrutiny of Compliance and Reporting
By the IRS, DOL, the Attorney General
•
•
•
•
Additional hiring of examiners including; accountants, attorneys, and
former “C” level employees by the governmental agencies
Sophistication of workers and computer processing of filed information
with the government
Increased sophisticated training concepts and tools being provided to
government employees
Mutual cooperation/coordination between the governmental agencies at
all levels (State, Federal agencies)
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II. Increased Scrutiny of Compliance and Reporting
By the IRS, DOL, and the Attorney General (continued)
•
The Governmental Agencies receive forms and information from various
employer filings
(e.g. W-2, 941, 1099, 5500, 990, 990-T, etc.)
•
During an examination the agents and investigators review other
documentation
–
plan documents including summary plan descriptions,
–
notices and communication to employees, employee handbooks
–
committee meeting minutes,
–
written policies and procedures used in processing operations involving
financial or tax reporting
–
governing documents and other industry specific information
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II. Increased Scrutiny of Compliance and Reporting
By the IRS, DOL, and the Attorney General (continued)
1. Employee Plans Compliance Unit (EPCU)
- Pension/Retirement Plans
2. Exempt Organizations Compliance Unit (EOCU)
- Review of Operations (ROO)
- Data Analysis Unit (DAU)
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Reporting Requirements
III. Form 5500 Reporting Requirements
• Form 5500 - Annual Return/Report of employee benefit plan (generally
pension & welfare)
• Used to satisfy the annual reporting requirements for the DOL, IRS & PBGC
• Primary source of information reported to the government about employee
benefit plans
• Used for enforcement, research & disclosure
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III.Form 5500 Reporting Requirements (continued)
List of Employee Benefit Plans
Retirement
Welfare
Fringe Benefits
401(k)
Premium-Only-Plan
403(b)
Health Insurance
• Vision
• Dental
Profit Sharing
Life Insurance
Qualified Transportation
Defined Benefit
Educational Assistance
Money Purchase
Disability Plans
– Long Term
– Short Term
Employee Stock Ownership Plans
Cafeteria Plan w/Health FSA
Fitness Memberships
Accidental Death & Dismemberment
Awards
Dependent Care Assistance Plans
Outplacement Services
Severance Plans
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III.Form 5500 Reporting Requirements (continued)
• Who Must File?
Retirement Plans
- 1 man plans/sole proprietorships/partnerships – Form 5500-EZ
- Small Plans (less than 100 participants) – Form 5500-SF
- Large Plans (100 or more participants) – Form 5500
Welfare Plans
- Large Plans only (100 or more participants)
• When is Form 5500 Due to be Filed?
- 7 months after plan year ends
- Timely filed Extension Form 5558 +2.5 months
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III.Form 5500 Reporting Requirements (continued)
• Exceptions to the Form 5500 Filing Requirements
- Small Welfare Plan (less than 100 participants)
- Fringe Benefit Plans – See listing of Fringe Benefits Plans.
IRS Notice 2002-24
- Church Plans or other Non-ERISA Plans (403(b) plan)
- Nonqualified Deferred Compensation Plans.
-
If the NQDC plan filed a registration statement with the DOL
Solution: Review all types of employee benefit plans/programs and
determine if all the appropriate Form 5500s are filed
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Part III. Form 990 Reporting Requirements (continued)
• Information return submitted to the IRS
• Provides comprehensive information about the organization
• Public document
• Can be used to satisfy state filing requirements
• Marketing tool
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Part III. Form 990 Reporting Requirements (continued)
Basic Filing Requirements
Who must file:
• Most organizations exempt from income tax under IRC
– §501(a) must file 990 or 990-EZ or 990-N (electronic postcard)
When:
• Due 15th day of 5th month after the organizations accounting period
ends
Exceptions:
• Churches and affiliates
• Disregarded Entities – Single Member LLC’s - Reg. § 301.7701-1 to 3
• Certain government organizations
• Certain political organizations
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Part III. Form 990 Reporting Requirements (continued)
Thresholds for Filing
Who must file Form 990?
• 2011 – Organizations with gross receipts of $200,000 or more or total
assets $500,000 or more at the end of the tax year
• Gross Receipts – total amount of received from all sources during the
year
• Total Assets – amount reported on balance sheet at the end of the year
Exceptions to thresholds:
• Sponsoring organizations of donor advised funds
• Controlling organizations described in § 512 (b)(13)
• Supporting Organizations described in §509(a)(3)
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Part III. Form 990 Reporting Requirements (continued)
Thresholds for Filing
May file 990 E-Z for:
If gross receipts are:
And if assets are:
2007 Form (generally filed in 2008)
> $ 25,000 and < $ 100,000
< $ 250,000
2008 Form (generally filed in 2009)
> $ 25,000 and < $1,000,000
< $2,500,000
2009 Form (generally filed in 2010)
> $ 25,000 and < $ 500,000
< $1,250,000
2010 and later Forms
> $ 50,000 and < $ 200,000
< $ 500,000
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Part III. Form 990 Reporting Requirements (continued)
•
Mandatory if the organizations has $10 million or more in total assets at the end of
the tax year and files at least 250 “returns” during the year
•
Optional for all other organizations
•
Definition of “Returns” – includes W-2’s, 1099’s, 941 etc.
•
If an organization is required to file electronically but does not the organization is
considered not to have filed. Even if a paper return is submitted. Temp Reg.
§310.6033-4T & Reg. §301.6033-4.
•
Waiver – Notice 2005-88, 2005-48 I.R.B. 1060
•
www.irs.gov/efile
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Part III. Form 990 Reporting Requirements (continued)
Failure to File Penalties
•
§6652(c)(1)(A) – Penalties for failure to file
– Begin on due date of return
•
Reasonable cause
•
$20 per day not to exceed smaller of:
– $10,000 or
•
5% of gross receipts for the year
•
Large Organizations (annual gross receipts > $1 million)
– $100 per day
•
Maximum of $50,000 per return
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Part III. Form 990 Reporting Requirements (continued)
Failure to File Penalties (Continued)
What constitutes organizations failure to file?
• Not filing / Late filing
• Filing incomplete tax return
• Return contains incorrect information
Penalties charged against responsible persons:
• Organization must respond to IRS notice of failure to file
• §6652(c)(1)(B)(ii) - Individual charged penalty of $10 per day with maximum
of $5,000
Penalties for willfully not filing or filing fraudulent returns:
• Penalties at the state level
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Part III. Form 990 Reporting Requirements (continued)
Public Disclosure Requirements
•
§6104 IRC – Information open for public inspection
•
Exact copy of annual returns, applications for exemption, and other information
required to be furnished under §6033, §6034, §6058
•
3-year limitation on inspection of returns
- Information available in person or on internet
- Reasonable Fee Charge (postage, copy charge permitted)
- Penalties for non-compliance
- Amended returns begin new 3 year period
•
Exceptions from disclosure:
- Schedule B – Schedule of contributors
- Organizations not considered private foundations
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IRS Compliance Checks and initiatives in
support of its continued compliance
efforts
IV. IRS Compliance Checks
•
What is a Compliance Check?
A compliance check is not an examination and a taxpayer may choose
not to participate. There is no penalty for not participating. It is a tool
that is used to contact a taxpayer that involves a review of filed
information and tax returns of the entity.
•
Compliance Checks Do’s and Don'ts
Do's
Don’ts
• Discuss internal controls
• Inspect books and records
• Evaluate procedures
• Discuss books and records
• Inspect filed reports
• Question employee classification (IC or EE)
• Accept and process amended
or delinquent Form filings
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IV. IRS Compliance Checks (continued)
• How are taxpayers contacted for compliance checks
─
—
—
—
—
—
Contact is made in writing by the providing of a letter to the
plan sponsor.
Telephone calls is another method.
The IRS does not use email to initiate contact.
Taxpayers can use a representative to respond to a
compliance check.
A Form 2848 Power-of-Attorney (POA) must accompany the
response to the IRS when a representative is used.
The IRS can send a copy of the compliance check closing
letter to the POA.
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IV. IRS Compliance Checks (continued)
•
What are the differences between a compliance check and an examination
of a return? There are several key differences.
─
A compliance check is not an audit or an investigation under Code
§7605(b).
─
A compliance check does not preclude a plan sponsor’s use of IRS
correction programs to correct plan errors.
─
Upon receipt of a written or oral Notice of Audit, the plan sponsor is
prohibited from filing a Voluntary Correction Program application under the
IRS’s Employee Plans Compliance Resolution System (“EPCRS”).
•
What could happen if there is no response to a compliance check
questionnaire?
─
Failure to answer the correspondence could result in further
action, including examination of the plan.
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IV. IRS Compliance Checks (continued)
Employee Plans Compliance Check Current Projects
Form 5330 - 4979 Excise Tax
Multiemployer Certification Compliance Project
(Follow-up to those not submitting annual certifications)
Form 5500 Non-filer
Funding Deficiencies
Nonbank Trustees and Custodians
Hacienda Project
Partial Termination/Partial Vesting
International Project - Domestic Trusts
Plan Participation Project - New
International Project - Foreign Distributions
Qualifying Employer Securities Project
Invalid 501(c)(18) Deferrals Project
Simplified Employee Pension Plans (SEPs) Project
Leased Employee Project
Termination Project - New
Multiemployer Actuarial Certification/WRERA Elections
Project (Annual Certification Requirement)
401(k) plan with money purchase plan assets
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IV. IRS Compliance Checks (continued)
Form 5500 Non-Filer Project
• IRS and DOL are contacting plan sponsors who did not file a Form 5500 with
the DOL (or 5500-EZ with the IRS) for the plan years ended in 2009 or later
• Penalty structure for late filings:
- IRS $25 a day up to $15,000
- DOL (civil) $1,100 a day with no maximum
Solution: Consider preparing Form 5500 and filing under the DOL reduced
penalty filing program – Delinquent Filer Voluntary Compliance (“DFVC”).
There is a significantly reduced penalty structure to correct non-filed Forms.
(For example, $10 a day, or $1,500 small plan, $2,000 large plan)
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IV. IRS Compliance Checks (continued)
Partial Plan Termination
• Occurs because of plant/facility shutdown, layoffs, downsizing, sale of a
group of employees/division
• Significant reduction of 15% - 20% of participants
• Frequently IRS reviews more than 1 year for determination
• Is employer following requirements if a partial termination occurred?
• Affected participants must be 100% vested in their benefits
Solutions:
– Review of reasons for the reduction of participants
– Any employer actions; RIF or layoff, consider retirement plan impact
– Attach PDF to Form 5500 indicating issue reviewed, participants 100%
vested
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IV. IRS Compliance Checks (continued)
Termination Project
•
Final filings of Form 5500 must
1. Report $0 assets
2. No participants
3. If transferred assets – report on Schedule I or H
4. If plan merged into another plan - report on Schedule H
Solution: Prepare and file amended final Form 5500 as a response
to inquiry
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IV. IRS Compliance Checks (continued)
IRS Areas of Focus
• Utilization of Form 990
• Unrelated Business Income
• Corporate Governance
• Executive Compensation
• Industry Specific
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IV. IRS Compliance Checks (continued)
Utilization of Form 990
•
•
•
•
“Self-Audit”
Discloses critical information
Identify industry specific non-compliance areas
Develop questionnaires
• College and University
• Healthcare
• Others to come
• Create compliance checklists
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IV. IRS Compliance Checks (continued)
Utilization of Form 990
How does an organization mitigate exposure?
• Submit a complete and accurate Form 990
• Create internal review procedures
• Conduct period internal audits of the information
• Establish a board review process
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IV. IRS Compliance Checks (continued)
Unrelated Business Income
• Form 990
– Part I – Gross Unrelated Business Income
– Part I – Net Unrelated Business Income
• Applying lesson learned from previous questionnaires and
compliance checks
– College & University Questionnaire
– 2012 IRS Workplan
• Tax revenue from unrelated sources
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IV. IRS Compliance Checks (continued)
Unrelated Business Income
How does an organization mitigate exposure ?
• Create policy and procedures
• Track and document income
• Track and document expenses and expense allocation
• Capture losses by filing
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IV. IRS Compliance Checks (continued)
Corporate Governance
Why Is Good Governance Important?
• Risk management
• Keeps focus on the mission
• Good governance prevents pitfalls (conflicts of interest, private
benefit transactions and loss of exemption)
• Good governance = tax compliance
• IRS trained agents to review governance
• Governance Checksheet Roll out in 2011
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IV. IRS Compliance Checks (continued)
Corporate Governance
How does an organization mitigate exposure ?
• Adopt necessary policies
• Annually monitor, enforce and update policies
• Completely respond to governance questions
• Make sure narratives are accurate on Form 990
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IV. IRS Compliance Checks (continued)
Executive Compensation
Can not exceed FMV of services rendered
• Form 990, Part VII, Schedules J and O
• Private Benefit
• Private Inurement
• Detailed Compliance checks
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IV. IRS Compliance Checks (continued)
Executive Compensation
How does an organization mitigate exposure?
• Adopt compensation policy and procedures
• Create or designate a compensation committee
• Establish a rebuttable presumption of reasonableness
– Independent board members
– Relying on comparable data
– Properly documenting minutes
• Properly report all compensation of Form 990
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IV. IRS Compliance Checks (continued)
Industry Specific Focus
• 501(c)(7) – Social Clubs
• 15% / 35% Rule
• Non-Member Documentation
• Revocation of exempt status
• Investment income project
• Unrelated business income (UBI)
• UBI Expense allocation
• Employee Classification (IC vs. ER)
• Gaming non-filer project
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Examination and Investigation Issues
V. Examination and Investigation Issues
• The IRS and DOL have issued their Priority Guidance and Workplans
for 2011-2012
• Both agencies workplans indicate an increase in the number of
examinations/investigations of retirement plans
• The IRS has increased the number of 401(k) plans it will examine
• DOL has stated over 77% of 401(k) plans are noncompliant in some
manner
• In 2010, over 1000 investigations were initiated by complaints to the
DOL
• Federal deficit may be impacting the agencies need to collect all
penalties and interest
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V. Examination and Investigation Issues (continued)
• Accommodation and Food Services (401(k) plans)
The following issues were identified based on the results of at least 500
examinations. These results were updated in July 2011.
- ADP/ACP Testing
- Timely remittance of employee contributions
- Contribution allocation errors
1. Not following plan terms
2. Using incorrect definition of compensation
3. What about forfeitures
- Failure to amend plan document
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V. Examination and Investigation Issues (continued)
• ADP/ACP Testing (Pre-Tax Deferrals and ER Matching
Contributions)
Issue: Noncompliance of these tests can result in tax sanctions($), additional employer
contribution with earnings, and penalties
Problems:
1.
Tests not completed or not corrected
2. Determining the highly compensated ($110,000 – 2010) and nonhighly compensated employees
3. Using correct definition of compensation
4. Form 5330 not timely filed to pay 10% excise tax when ADP fails
Solution: Depending on severity of issue; IRS-voluntary application (fee) or
self-correction
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V. Examination and Investigation Issues (continued)
• Timely Remittance of Employee Contributions
Issue: The DOL expects employee contributions to be transmitted to the plan within seven
business days if a small plan, or more frequent if a large plan
Problems:
1. Failure to timely transmit results in disclosure on Form 5500 and/or accountant’s
report
2. Increase likelihood of DOL/IRS scrutiny
3. Correction involves additional contribution by employer of lost earnings
4. Filing of tax Form 5330 with excise tax payment to IRS
Solution: DOL voluntary VFC* application is recommended
*VFC = Voluntary Fiduciary Correction
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V. Examination and Investigation Issues (continued)
• Forfeitures
Issue: Plan documents provide proper use or disposal of amount
Problems: Not following plan terms;
1.
Reduce future employer contributions
2.
Pay plan administrator expenses
3.
Allocate to remaining participant accounts
4.
Timing of when to use forfeiture
Solution: Usually can be self-corrected following IRS principles
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V. Examination and Investigation Issues (continued)
• Failure to Amend Plan
Issue: Plan document has not been updated for recent law changes (Ex. - PPA 2006,
HEROES, WRERA)
Problems: Qualified retirement plan documents require frequent amendments
1. Plan is required to be amended retroactively
2. May require retroactive operational changes costing employer $$$
3. Plan document errors can only be fixed by application to IRS
Solution: Have the original plan document(s), subsequent amendments, and any
related board minutes reviewed by an expert to determine if plan was updated
timely
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V. Examination and Investigation Issues (continued)
Cafeteria Plans
I. Written plan document requirement
- Frequently flexible spending accounts - medical and dependent
care are included
- Mandatory items include:
1. Eligibility
2. Procedures for enrolling and changing elections
3. Funding; EE + ER contributions and maximum amount
4. Plan year
5. Grace period for incurring expenses (2½ months)
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V. Examination and Investigation Issues (continued)
Cafeteria Plans (continued)
II. Compliance/Nondiscrimination Tests
(Not Applicable to Premium-Only-Plans)
- 25% Concentration Test/ Key EE’s
- Flexible Spending Accounts
1. Eligibility
2. Benefits and Contributions
3. Average Benefit Test – 55% (Dependent Care only)
The objective of the tests are to ensure the Highly Compensated Employees
(HCEs) do not benefit in an unreasonable manner.
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V. Examination and Investigation Issues (continued)
Cafeteria Plans (continued)
III. Operational/Issues
- Failure to obtain written election by employee
- Elections to participate are irrevocable unless status change rule is
satisfied (e.g., loss of spouses health plan, add dependent, etc.)
- Reimbursement is made for only substantiated medical expenses
incurred by employee, spouse or dependent
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V. Examination and Investigation Issues (continued)
Cafeteria Plans (continued)
IV. Consequences of Noncompliance
-
Plan Document or Operational Failures Result in Adverse
Federal Tax Consequences
• Employee Liability:
Inclusion in Participant’s Gross Income Value of Taxable Benefit.
(Generally will be limited to HCEs only)
• Employer Liability:
Tax Withholding/Reporting and FICA Tax Liability
Alert: No de minimis violation exception rule and no provision for retroactive
correction
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V. Examination and Investigation Issues (continued)
Cafeteria Plans (continued)
IV. Consequences of Noncompliance (continued)
Solutions:
• Plan document review
• Coordinate nondiscrimination testing with administrator or employee
benefit consultant
• Review a sample of plan transactions
• Prepare a written manual/guidelines to follow to administer the plan
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V. Examination and Investigation Issues (continued)
501(c)(7) – Social Clubs
Results from recent IRS Exams
-
IRS routinely re-calculating the 15% and 35% test
- Nonmember gross receipts limit consistently being exceeded
- Clubs are not maintaining proper non-member documentation
and recordkeeping in accordance with Rev. Proc. 71-17
- Clubs not filing form 990-T or 1099’s
- IRS increasing terminations of 501(c)(7) status
- IRS scrutinizing reciprocal agreements and non-traditional income
activities
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Self Audit and Correction
VI. Self Audit and Correction
• IRS recommends and annual check-up of the forms, guides and
processes utilized to maintain and operate retirement and employee
benefit plans.
• An independent review of the ADP/ACP and other compliance tests, the
definition(s) of compensation and other key terms contained in the
plan document, can assist the plan sponsor to understand the plan’s
provisions.
• This process will help to identify any omissions requiring proactive
corrective actions can be provided to reduce future errors.
• Assistance may be needed to complete a voluntary application to the
IRS or DOL to correct significant errors.
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VI. Self Audit and Correction (continued)
Sample Workplan
Step 1:
Review plan documentation, and related Forms (5500, W-2, 1099s, 941)
Step 2 : Verify operations and internal controls: interviewing key personnel and
identify issues and weaknesses
Step 3 : Test plan data; systems used to process, samples
Step 4 : Internal report of findings to management/decision makers
Step 5:
Correct plan failures voluntarily (IRS – Employee Plans Compliance Resolution
Program (EPCRS), SC/VCP* or DOL Voluntary Fiduciary Correction (VFC) Program
applications
Step 6:
Revise administration and procedures
SC = Self-Correction
VCP = Voluntary Compliance Program
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VI. Self Audit and Correction (continued)
Steps to be taken to protect against an IRS audit
Step 1:
Review your organizations governing documents and compare them periodically
to your operations
Step 2 : Adopt, update, monitor and enforce corporate governance policies and
procedures
Step 3 : Examine your organizations website and activities
Step 4 : Review your documentation and records to substantiate tax positions taken
Step 5:
Review employment contracts and stay current with employment and benefit plan
tax filings
Step 6:
Create review process to ensure your Form 990 is prepared completely and
accurately
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VI. Self Audit and Correction (continued)
Steps to be taken after winning the audit lottery
Step 1:
Get organized
Step 2 : Designate a single “point of contact”
Step 3 : Develop a communication strategy
Step 4 : Know which agents are working on your audit
Step 5:
Designate a location for the audit
Step 6:
Ask questions and establish a timetable
Step 7:
Relax and take a deep breath
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Garrett M. Higgins, CPA
Partner
Tax Practice Group
Garrett M. Higgins, CPA is the Partner in
charge of the Exempt Organization Tax and
Advisory Services Group of O’Connor,
Davies, LLP. Mr. Higgins previously worked
with KPMG’s Exempt Organizations Tax
Practice in New York and has more than
seventeen years of tax compliance and
consulting experience specializing in tax
exempt organizations. His clients include
private
foundations,
colleges
and
universities,
museums,
healthcare
organizations, large public charities, social
clubs, business leagues, pension and
welfare benefit trusts, as well as other tax
exempt organizations.
Mr. Higgins has significant experience
advising clients in a broad range of tax
compliance and consulting issues including:
exemption application assistance, return
preparation and review; private foundation
excise taxes; unrelated business income tax
analysis and planning, state and local tax
planning and reporting, strategic use of
limited
liability
companies,
taxable
subsidiaries and foreign entities, foreign
CMAA - World Conference 2/27/12
Phone: 914.381.8900
Fax:
914.381.8910
Email: ghiggins@odmd.com
bank account and foreign entity reporting, executive compensation
intermediate sanctions planning and compliance and IRS dispute
resolution.
Mr. Higgins has written many articles on various tax issues affecting
exempt organizations and has presented at many firm sponsored
events. He has been invited to be a guest speaker on numerous
occasions for many organizations, including the United Way of
Westchester, Association of Fundraising Professionals and the Avila
Institute. Mr. Higgins also provides continuing professional
education within the firm on the tax law of exempt organizations
and has been an instructor for multiple years for Lorman Education
providing continuing education to attorney’s, accountants and
exempt organization professionals about the new Form 990. In 2010
Mr. Higgins was the recipient of the New York Enterprise Award for
the Best Accountants and Attorneys for Growing Business and in
2011 was nominated as one of the top forty under forty rising stars
in Westchester County.
Professional Affiliations
• American Institute of Certified Public Accountants
New York State Society of Certified Public Accountants
Education
• Queens College, Bachelor of Arts degree in accounting and
information science
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Louis F. LiBrandi, Fellow, ISCEBS
Principal
Employee Benefit Services Group
Phone: 212.286.2600
Fax:
212.286.4080
Email: llibrandi@odmd.com
Louis F. LiBrandi, Fellow, ISCEBS is a principal
with the Employee Benefit Services Group of
O’Connor Davies, LLP. Mr. LiBrandi previously
served as a director in the compensation and
benefits advisory services practice at a
medium-sized New York City law firm and was
the primary professional responsible for the
preparation of the Form 5500 and other
employee benefit reporting for many of the
firm’s clients. He was also a member of the
employee benefits department, serving clients
to meet their reporting and disclosure
requirements of ERISA, updating their qualified
and non-qualified plan documents, and
consulting with sponsors of retirement plans to
meet the many qualification requirements of
the tax regulations including 403(b) plans. Mr.
LiBrandi frequently represents retirement and
welfare plans on examination by the IRS and
DOL and has also completed a large project for
a health care system that involved establishing
procedures to properly identify workers
employment classification.
Mr. LiBrandi was a senior manager of a Big Four accounting firm in its
compensation and benefits practice for over eleven years. He also
served as revenue agent for the Internal Revenue Service for ten years
in the employee plans division. Mr. LiBrandi is a Fellow, International
Society Certified Employee Benefit Specialist and has attained the
American College’s Chartered Financial Consultant designation.
Mr. LiBrandi has written several articles on various employee benefit
matters. He is also a frequent presenter on retirement plan topics and
speaks annually about the Form 5500 and related schedules for the
New York Chapter of ISCEBS. Other presentation topics included the
IRS and DOL voluntary compliance programs, nonqualified deferred
arrangements and tax issues involving the misclassification of worker
audits by the IRS.
Professional Affiliations
• American Institute of Certified Public Accountants’ Tax Task Force
regarding the Form 5500, reviewer
• Certified Employee Benefit Specialist NY Metro Chapter Board of
Directors, past president
• International Society of Employee Benefit Specialist Professional
Development Committee
Education
• Long Island University, Bachelor of Science degree in Accounting
CMAA - World Conference 2/27/12
63
Questions and Answers
CMAA - World Conference 2/27/12
Disclaimer
Any tax advice included in this written
communication was not intended or written
to be used, and it cannot be used, by the
taxpayer, for the purpose of avoiding any
penalties that may be imposed by any
governmental taxing authority or agency
CMAA - World Conference 2/27/12
Checklists and Articles
Available at Web Addresses:
IRS Materials
www.irs.gov/ep
ODMD Information
www.odmd.com
CMAA - World Conference 2/27/12
66