The IRS has recently issued CP 213, Proposed Penalty Notice notices, in some cases in error, to plan sponsors who filed a late or incomplete IRS Form 5500. Employee Plans News - Issue Number: 2010-11 – November 26, 2010 confirms that you need to respond within 30 days, even if the notice was issued in error:

What are Required Minimum Distributions?

If the highly compensated employees (HCEs) at your company are limited in the amount they can defer in the 401(k) plan due to the IRC Section 401(k) ADP and/or IRC Section 401(m) ACP nondiscrimination testing requirements, then a safe harbor contribution may be a good fit for you. If you make a safe harbor contribution then you are deemed to satisfy the nondiscrimination testing requirements. In addition to automatically passing the testing, you may reduce your 401(k) compliance testing expenses by not having to perform the test(s).

Dispelling the Myths about ESOPs does a great job of debunking some common ESOP fallacies:

The November 15, 2010 Employee Ownership Update is online and discusses the following:

Recently we have discussing ESOP Corporate Governance issues. For companies interested in sustaining an ESOP in the long-term, building and maintaining an ownership culture should be a part of your company's long-term corporate strategy that is monitored by the Board of Directors.

ACTUARIAL REPORTS ~ Permanently

We recently provided an update on the National Commission on Fiscal Responsibility and Reform. The Wall Street Journal reports in Panel Chairmen Recommend Cutting Federal Spending by $200 Billion that the co-chairs of the deficit commission have released a draft proposal that includes lowering the corporate tax rate to 26%. Most of the recent proposals that have proposed reducing the corporate tax rate have done so by eliminating "tax loopholes". Some of the same proposals have considered ESOP benefits to be "tax loopholes".

Expert Testimony Guidelines for CPA Valuation Analysts provides some best practices for valuation professionals providing expert testimony:

1. Know that you are the shareholders' first line of defense.
2. Build value through mutual respect.
3. Communicate.
4. Measure your success.
5. Compensate yourselves in equity.
6. Share your metrics.
7. Hold yourselves accountable.
8. Establish an "owner's relations committee."

What is corporate governance?

The November 1, 2010 Employee Ownership Update is online and discusses the following:

The regulation significantly narrows the plain language of section 3(21)(A)(ii), creating a 5-part test that must be satisfied in order for a person to be treated as a fiduciary by reason of rendering investment advice. For advice to constitute ``investment advice,'' an adviser who does not have discretionary authority or control with respect to the purchase or sale of securities or other property for the plan must--