Instructions for Form 8950
Department of the Treasury
Internal Revenue Service
(January 2013)
Application for Voluntary Correction Program (VCP)
Under the Employee Plans Compliance
Resolution System (EPCRS)
Section references are to the Internal
Plans Compliance Resolution System
examination or of any impending referral
Revenue Code (IRC) unless otherwise
(EPCRS), and all of the other required
for such examination;
noted.
items stated in Rev. Proc. 2013-12,
The subject plan is currently under
section 11.
investigation by the Criminal Investigation
IRS.gov
Division of the IRS; or
Types of Retirement Plans
Certain other situations specified in
For the latest information about Form 8950
Eligible for Corrections
Rev. Proc. 2013-12, section 5.09.
and its instructions, search “About Form
8950” on IRS.gov or go directly to
VCP is not available to correct failures
VCP is open to certain tax-favored
retirement plans established under
relating to the diversion or misuse of plan
sections 401(a), 403(a), 403(b), 408(k), or
assets. VCP may not be available if the
Confidentiality and
408(p). Under limited circumstances, the
plan sponsor has engaged in abusive tax
Disclosure
avoidance transactions. See Rev. Proc.
IRS may also consider submissions
2013-12, sections 4.12 and 4.13. In
outside of EPCRS that involve section
The Voluntary Correction Program (VCP)
particular cases, the IRS may decline to
457(b) plans on a provisional basis.
submission, including Form 8950, is not
Generally, such submissions are for
make VCP available in the interest of
open to public inspection or disclosure.
section 457(b) plans sponsored by a
sound tax administration. See Rev. Proc.
The use of VCP relates directly to the
governmental entity defined in section
2013-12, section 4.01(5).
enforcement of the IRC qualification
414(d). See Rev. Proc. 2013-12, section
Who May File
requirements. The information received or
4.09, for details and limitations.
generated by the IRS under VCP is
Form 8950 and accompanying VCP
Eligibility Requirements
subject to the confidentiality requirements
submission may only be filed by the
of section 6103 and is not a written
for the Use of VCP
following parties:
determination within the meaning of
In general, an employer or plan
VCP is open to eligible retirement plans
section 6110. See Revenue Procedure
sponsor, including a sole proprietor,
(see Types of Retirement Plans Eligible for
(Rev. Proc.) 2013-12, section 6.12.
partnership, or corporation. Generally,
Corrections above ) that incurred any one
estates and/or beneficiaries may not file a
Disclosure Request by
of the following qualification failures: (a)
submission under VCP.
Plan Document Failure; (b) Operational
Taxpayer
For multiple employer or multiemployer
Failure; (c) Demographic Failure; or (d)
plans, the plan administrator (rather than
The Tax Reform Act of 1976 permits a
Employer Eligibility Failure. VCP is also
any contributing or adopting employer).
taxpayer to request the IRS to disclose
available for plan loans that did not comply
The VCP submission must be for the plan,
and discuss the taxpayer's return and/or
with the requirements of section 72(p)(2).
rather than a portion of the plan affecting
return information with any person(s) the
See Rev. Proc. 2013-12, sections 4.01,
any particular employer.
taxpayer designates in a written request.
5.01, 5.02, 6.07 and 6.11, for additional
For group submissions, an eligible
Use Form 2848, Power of Attorney and
details. VCP is also available to
organization as defined in Rev. Proc.
Declaration of Representative, and/or
terminated plans regardless of whether all
2013-12, section 10.11, if the applicable
Form 8821, Tax Information Authorization,
plan assets have been distributed.
conditions for group submissions have
for this purpose.
Correction under VCP is not available if
been met.
the plan or plan sponsor is under
Anonymous submissions must be filed
General Instructions
examination. The Form 8950 and the VCP
by an authorized representative. However,
submission must be mailed to the IRS
the representative must be designated on
Purpose of Form
prior to the time the plan or plan sponsor is
a power of attorney by the employer (or in
under examination, as defined in Rev.
the case of a multiple employer or
Form 8950 must be filed as part of a VCP
Proc. 2013-12, section 5.09. For purposes
multiemployer plan, the plan
submission in order to request written
of VCP, a plan or plan sponsor will be
administrator) and must be willing to
approval from the IRS for correction of a
considered to be under examination if
submit a signed Form 2848, if identifying
qualified plan, 403(b) plan, SEP, SARSEP
any of the following situations apply:
information is ultimately submitted to the
or SIMPLE IRA that has failed to comply
The plan sponsor is under any type of
IRS. See Anonymous Submissions below.
with the applicable requirements of the
examination conducted by IRS Employee
For orphan plans, an authorized eligible
IRC. VCP is part of the Employee Plans
Plans, including examination of a Form
party. See Orphan Plans below.
Compliance Resolution System (EPCRS),
5500 series return;
currently set forth in Rev. Proc. 2013-12,
Orphan Plans
The plan sponsor is under any type of
2013-4 I.R.B., which is available at
examination conducted by IRS Exempt
For VCP, orphan plan means any
Organizations;
tax-favored retirement plan for which an
Plan
Errors.
The plan sponsor or a representative
eligible party (defined below) has
has received verbal or written notification
A VCP submission includes Form
determined that the plan sponsor (a) no
from IRS Employee Plans or Exempt
8950, Form 8951, Compliance Fee for
longer exists, (b) cannot be located, or (c)
Organizations of an impending
Application for Voluntary Correction
is unable to maintain the plan. However, a
Program (VCP) Under the Employee
Jan 30, 2013
Cat. No. 57357G