IRS Issues 2017 Draft Instructions for Form 5300

The IRS has issued the 2017 draft instructions for Form 5300, Application for Determination for Employee Benefit Plan. Form 5300 is used to request a determination letter (DL) from the IRS for the qualification of a defined benefit or a defined contribution plan and the exempt status of any related trust.

Many of the revisions reflect the changes affecting individually designed plans described in Rev. Proc. 2016-37, 2016-29 I.R.B. 136. The changes that the new draft reflects include:

• eliminating five-year remedial amendment cycles;

• generally limiting DL requests to initial plan qualification and qualification on plan termination, effective Jan. 1, 2017; and

• allowing sponsors to submit requests for determinations on partial termination regardless of their ability to request DLs on their plan document. Many other changes are intended to reduce burdens on filers.

The IRS includes tips regarding the revised Form 5300 instructions for certain filers.

DB Plans. New information is requested for DB plans in connection with Notice 2015-49, 2015-30 I.R.B. 79. See item 7 under “What To File” and include the information in your submission.

Multiple Employer Plans. An employer that has adopted a multiple employer plan no longer may request a DL as an individual employer. Instead, it should rely on the DL issued to the lead sponsor of the multiple employer plan.

Disclosure Request by Taxpayer. A taxpayer can authorize the IRS to disclose and discuss the taxpayer's return and/or return information with any person(s) the taxpayer designates in a written request.

Note that this is an early release draft the instructions for Form 5300; it is intended to provide information about the form and the instructions only and is not to be used for actual filing.