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IRS Modifies EPCRS to Account for Determination Letter Changes

The IRS has issued guidance modifying the Employee Plans Compliance Resolution System (EPCRS) to take into account the changes in the determination letter application program under Revenue Procedure (Rev. Proc.) 2016-37. The guidance is contained in Rev. Proc. 2016-51, which the IRS issued on Sept. 29.

Under Rev. Proc. 2016-37, the IRS says that, effective Jan. 1, 2017, it will issue determination letters only on an individually designed plan’s initial qualification and termination. Each year thereafter, based on its assessment of its staffing and workload levels, the IRS will decide whether to issue determination letters for other reasons, such as significant changes to the law, new design approaches or for types of plans that can’t convert to preapproved documents.

Rev. Proc. 2016-51 also incorporates certain modifications set forth in Rev. Proc. 2015-27 and Rev. Proc. 2015-28, two prior revenue procedures that modified Rev. Proc. 2013-12. In addition, the revenue procedure incorporates modifications to Rev. Proc. 2013-12 from Rev. Proc. 2016-8, the annual user fee revenue procedure. Rev. Proc. 2013-12, Rev. Proc. 2015-27 and Rev. Proc. 2015-28 are modified and superseded by this revenue procedure.

Revenue Procedure 2016-51 will be published in Internal Revenue Bulletin (IRB) 2016-42, which will be issued on Oct. 17, 2016.