Mark O’Donnell, Director, EP Customer Education & Outreach, is responsible for the organization and delivery of various Employee Plans education and outreach vehicles (using such means as the Internet, the Employee Plans News, and a system of speakers) as well as providing support for regional benefits conferences.

Mark joined the IRS in 1983 as a tax law specialist and served as a Project Leader and Branch Chief in EP prior to becoming the first director of CE&O.;  Mark is a graduate of the University of Virginia and received his Juris Doctor from the Catholic University of America.

You joined the IRS 20 years ago.  What changes have you noticed in the IRS “culture” in that time?

Back then we were far less diverse.  Our activities included primarily publishing guidance and doing enforcement.  The guidance was on the new law at the time: TEFRA, DEFRA and REA.  Enforcement was done up front through the determination letter program and after the fact through the examination program.  To me, we were more of an enforcement agency and our relationship with taxpayers was often confrontational.  We possessed one unwieldy weapon: disqualification -- the “atom bomb”.  It was difficult to apply this sanction without destroying the underlying retirement plan. 

In the last 20 years, the value of cooperation between the public and private sectors has become increasingly obvious.  All of us working in the Employee Plans area -- both inside and outside the government -- are engaged in the same activity: expanding plan coverage and increasing compliance with the pension rules.  We have witnessed the growth of voluntary compliance programs that encourage self-audit and correction of plan defects.  They also provide reasonable sanctions designed to encourage correction. 

When and why was the EP Customer Education and Outreach office brought into existence?

CE&O; was given birth during the redesign of the IRS in 1999 and 2000.  I think we acknowledged that better communication would help us accomplish our mission.  Our purpose is to partner with our customers to improve plan coverage and compliance.  We have set up a number of vehicles to facilitate our outreach efforts.

I have heard repeatedly from folks in the private sector that employers do not understand what they have undertaken when they adopt a retirement plan.  Plan sponsors want to comply - their retirement plans are adopted voluntarily to help employees and to take advantage of the tax benefits associated with a retirement plan.  Noncompliance arises from:

• Not knowing what the rules are,
• Not being aware of who is responsible for compliance, or
• Not realizing what is involved in compliance.

The determination, examination and voluntary compliance programs provide one-on-one outreach with our customers.  They are set up to encourage compliance.  CE&O;’s mission is designed to leverage off of those programs and spread their impact to the universe of plan participants, sponsors, practitioners and vendors.  For example, we hope that by broadcasting the results of our examination program we can encourage employers to conduct self-audits and use our voluntary compliance programs to correct plan defects.

How has the start-up period gone so far?

Very well.  We are at the end of the beginning.  We have hired the employees and set up the communication vehicles: the Retirement Plans Web page, the Employee Plans News, a system of speakers, publications and other products.

Before CE&O;, there were outreach activities carried on by EP employees across the country, but it was not planned, organized and supported nationally with a dedicated staff.  This staff has allowed us to greatly enhance our customer education and outreach efforts.  For example, we were able to publish this newsletter.  Our subscriber base has grown to nearly 17,000.

How many folks work for you? Where? In what capacities?

EP CE&O; has 16 employees: one in each of our six area offices, two in Cincinnati and eight in Washington, DC.  Our employees in each area coordinate education and outreach efforts in their area.  This involves coordinating with the area manager and local partners, supporting speakers, benefits conferences, etc.  Our other employees work on our other responsibilities: the web, the newsletter, our forms and publications, other outreach products like CD-ROMs and videos, and other support for our programs.

What do you think your audience thinks of CE&O; initiatives?  

We receive feedback from our customers and it is generally positive.  We do a lot of exhibiting at conferences around the country and some people seem suspicious, but they are generally impressed when they find that we are genuinely interested in providing them information that will help them find the right retirement plan and make sure that it is operated properly. 

It is tough to measure our impact on our audience.  We really need input on how to make our education and outreach efforts more meaningful and effective.  I appreciate any comments or suggestions -- positive or not -- because they help us evaluate and direct our program.  They can be sent to us at RetirementPlanComments@irs.gov.

Last year was the second year that EP participated in the IRS Nationwide Tax Forums.  Why did EP participate?  What’s different about the Tax Forums audiences from the traditional EP outreach audiences?

The Tax Forums offer us an opportunity to get information directly to a large audience of general tax practitioners.  They are a link to our customers who don’t normally hire a benefits professional.  Last year, we used the Tax Forums as a platform to introduce the “Choosing a Retirement Solution for Your Small Business” publication which provides information about the array of retirement plan options available and some of their features.  This year’s seminar will explore the latest on establishing and operating “No Fuss” Retirement Plans (i.e., Payroll Deduction IRAs, SEPs and SIMPLEs) and correcting common problems.

You mentioned that EP in general, and CE&O; specifically, are reaching out to the small business community.  Why?

The small business community is a vast market for us.  Large employers tend to have retirement plans and their plans tend to be administered and serviced by benefits professionals.  This is not true for many small businesses.  There are large numbers of small businesses with no retirement plans and many with plans don’t operate them properly.  Over 40 million Americans are employed in businesses with 100 or fewer employees but only 8 million of them have retirement plans.  This is a major problem.  We are trying to address it by educating small business owners about the opportunities that retirement plans provide them and their role in assuring that any retirement plan they have is running well.  Of course, we want to educate them as well about our voluntary compliance programs and encourage them to set up plan procedures that will ensure compliance.  The Advisory Committee on Tax Exempt and Government Entities (ACT) endorsed this approach in their report on small business compliance.  We are organizing our information in the four stages of the “life cycle” of a retirement plan: Choosing, Establishing, Operating and Terminating.

What information can people find on the Retirement Plans web page?

We have been very active posting information on the Retirement Plans web page.  We have information on our programs, guidance and outreach efforts.  We will continue to organize our information, tailor it to specific customers and provide “tools” to help our customers.  For example, we are working on information to help plan administrators find lost beneficiaries.

We are also posting web-based information to help explain other EP initiatives.  For example, in letters that we send to employers who have been identified as potential non-filers, we are providing a link to the Retirement Plans web site for information on the filing requirements, information on our late filing program and frequently asked questions.  In this way we are hoping to lower the level of confusion and reduce the number of phone calls we receive in response to these letters.

What projects is CE&O; working on or planning?

We are awash in good ideas.  We are prioritizing them and acting on those that seem most effective.  For example, we are producing a CD-ROM for the Voluntary Compliance program.   We intend to roll it out soon after publication of the upcoming Revenue Procedure enhancing the Employee Plans Compliance Resolution System.  We are also developing a resource guide for 401(k) plans.  This guide is coordinated with our 401(k) examination program; in fact, much of the content is being developed by our 401(k) compliance planning group.

We are also interested in educating participants and potential participants on their retirement needs and what to expect from their employer and the retirement plan.  In this way, we are hoping that participants will create the demand for retirement plans and they will know enough or have access to information so that they can check that their plan is being operated properly.

Please tell us what some of your goals are for the upcoming year. 

I intend to expand our whole program of information for small businesses in coordination with the Department of Labor and the SB/SE Division of the IRS, and develop and broadcast further information on the Retirement Plan Life Cycle.  I also intend to expand our coordination with our partners both inside and outside EP.  For example, right now many of our projects are initiated by compliance planning groups made up of representatives from Examination, CE&O; and R & A.  I want to get more employees in Rulings and Agreements and Examinations working on the content of our outreach products and services.

Why did you want to be the first Director of EP CE&O;?

To me it is a rare opportunity for personal development. All of us are teachers and students.  We are all engaged in educating our customers and clients about the advantages of retirement plans and the difficulties in operating them. I am learning the importance of simple, clear communication. I get to work with good people, the work is interesting and has a positive impact on a lot of other people.  What more can you ask for from a job?

Crystal ball time: What will CE&O; be doing five years from now, 10 years from now?

I think that CE&O;, and Employee Plans at large, will become more of an educational institution.  Plan participants, plan sponsors, practitioners and vendors will come to our website for information on all aspects of our retirement system.  We will have mature partnerships with a broad array of key players in the retirement plan field inside and outside the government.

You bike to the office every day.  Do you ever get work ideas while peddling down Capitol Hill?  Or is this time devoted to relaxation?

I can’t claim that I do much work on my bike.  It’s pure pleasure.  I have one of the great commutes in America -- by the Supreme Court, down Capitol Hill, and up the grand ceremonial space of the Mall: the museums, the Washington Monument and the White House.  It feels like it’s my neighborhood.