Home / Blog / Section 125 Cafeteria Plan IRS Audit Disaster Await Many Small Employers
Section 125 Cafeteria Plan IRS Audit Disaster Await Many Small Employers
Employers all over the country are in precarious positions regarding a possible IRS audit that would routinely include a review of their required Section 125 plan documents. Many employers allow their employees to take the insurance premium and medical expense deductions without the knowledge that the IRS and the DOL require a formal plan document and a Summary Plan Description. The end result will be disallowing all prior deductions, assessment of all unpaid back taxes for the employer and employee, plus interest and penalties. Are you one of these employers?
read more