Small Pension Plans:

Concerns About the IRS Actuarial Audit Program

HRD-93-64: Published: Jun 30, 1993. Publicly Released: Jun 30, 1993.

Additional Materials:


Office of Public Affairs
(202) 512-4800

Pursuant to a congressional request, GAO analyzed the impact of the Internal Revenue Service's (IRS) Actuarial Audit Program on small business sponsors of defined benefit pension plans.

GAO found that: (1) IRS initiated its small pension plan audit program to identify abusive tax practices; (2) IRS did not address issues and questions needing immediate resolution when it initiated the program or provide definitive guidance for examining defined benefit plans; (3) in July 1991, IRS implemented the Actuarial Resolutions Program to provide taxpayers with an opportunity for quick resolution of their cases; (4) IRS data showed that most audited plan returns were those of highly paid professionals; (5) in many cases, IRS did not find sufficient evidence to support lower interest rate or retirement age assumptions; and (6) IRS may be unable to support its assumptions for computing allowable pension contributions.

Jun 16, 2020

Feb 27, 2020

Jan 9, 2020

Dec 18, 2019

Oct 21, 2019

Oct 4, 2019

Sep 9, 2019

Jul 12, 2019

Jul 8, 2019

Looking for more? Browse all our products here