IRS Updates Determination Letter and VCP Submission Information

The IRS has issued Revenue Procedure (Rev. Proc.) 2022-4, which updates guidance on determination letter and Voluntary Correction Program (VCP) submission procedures. Changes from the prior year Rev. Proc. 2021-4 include the following.

Sections 5.01(4) and 8.01 are revised to provide that the procedures for obtaining an opinion letter with respect to a pre-approved 403(b) plan’s second six-year remedial amendment cycle beginning July 1, 2020, (and subsequent cycles) are set forth in Rev. Proc. 2021-37.

Sections 6.02 and 30.07 are revised to provide that Form 5300, Application for Determination for Employee Benefit Plan, may be submitted electronically beginning June 1, 2022, and must be submitted electronically beginning July 1, 2022, and provides updated procedures for submitting, including payment of the user fee.

Section 6.02(2)(a) is modified to delete “Trust Document” from the list of required documents that must be included as part of a determination letter submission.

Section 8.02 is modified to specify that a Form 5307, Application for Determination for Adopters of Modified Volume Submitter Plans, should be used in the case of a determination letter request for a standardized plan that is not a multiple employer plan if the employer requests a determination solely on overriding plan language added to satisfy IRC Sec. 415 or IRC Sec. 416.

Section 10.03 is modified to delete “trust documents” from the description of materials that must be submitted with a determination letter application.

Section 11.04 is modified to clarify that a plan sponsor of a dual qualified plan must submit a restatement showing compliance with the Code and applicable lists when submitting a determination letter application.

Sections 12.02, 12.03, and 12.04 are amended to clarify that an adopting employer of a standardized plan does not file a Form 5300 to request a determination related to overriding language necessary to coordinate the application of the limitations of IRC Sec. 415 or the requirements of IRC Sec. 416 because the employer maintains multiple plans.

Section 14.02 is modified to clarify the scope of reliance for a determination letter issued for a multiple employer plan.

Appendix A, Sections .01 and .05, are revised to update the user fees relating to letter ruling requests and opinion letters on pre-approved plans.