IRS disqualified multiemployer pension plan

Outcome: The IRS requalified the plan for a $1,000 penalty

Description: The IRS asserted a plan lost favorable tax status. The consequence was loss of employer deductions for contributions to the plan and income tax on plan investments. The actuary estimated this at $7.4 million in tax. Following our appeal and negotiations, the IRS requalified the plan and assessed a $1,000 penalty.