Bloomberg Law for HR Professionals is a complete, one-stop resource, continuously updated, providing HR professionals with fast answers to a wide range of domestic and international human resources...
May 9 —Practitioners who are biting their nails while they wait for more news about the IRS's changes to its determination letter program can expect guidance to come soon, just not all at once.
The Internal Revenue Service is working on guidance regarding the upcoming changes to its determination letter program, while also looking at the current inventory of requests for determination letters, Robert S. Choi, director of employee plans in the IRS's Tax Exempt and Government Entities Division, said at a conference May 6.
Choi said that while the program is changing, he assured practitioners that it "isn't going away" and that amended retirement plans will still be a part of the determination letter program.
The IRS announced in early 2015 that beginning in 2017, the program generally will only accept determination letter applications from sponsors of individually designed plans for initial plan qualification and upon the plan's termination. This change hasn't gotten a good response from sponsors of retirement plans because they rely on determination letters to make sure they have a qualified plan.
“We are changing what kinds of amended plans are coming in” for determination letters, something the IRS will determine on an annual basis, Choi said.
Choi said that the IRS is trying to clear out the inventory of determination letters and that he is expecting a high number of filings this year of Form 5307, Application for Determination for Adopters of Modified Volume Submitter Plans.
The IRS is also reviewing its Voluntary Correction Program in the same way that it evaluated the determination letter program, as well as looking at changes to the examination program, Choi said.
Choi spoke during a session of the American Bar Association Section of Taxation's May meeting.
For more information, see Compensation and Benefits Library’s Determination Letter Process chapter.
To contact the reporter on this story: Kristen Ricaurte Knebel in Washington at email@example.com
To contact the editor responsible for this story: Jo-el J. Meyer at firstname.lastname@example.org
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)