Form 8950 - Instructions January 2013 (Page 4 of 5) in pdf

date of the VCP submission. See Rev.

application to the IRS. During the review

For off-cycle plans (as of the date of the

Proc. 2013-12, section 12.08.

process, additional information is solicited

VCP submission), the failure is an

in order to determine whether the plan had

operational failure that is being corrected

Plans that have terminated and filed a

by retroactive plan amendment. To

been timely amended for past tax law

final form 5500 series return should enter

changes. The determination letter

determine whether a plan is on-cycle or

the number of participants on the return

application is withdrawn by Plan Sponsor

off-cycle, see Rev. Proc. 2007-44 (or its

filed for the year prior to the year all assets

X. Two months later, Plan Sponsor X

successor). Generally, a plan’s cycle is

were distributed.

submits a VCP submission to the IRS

determined by reference to the EIN of the

For group submissions, the eligible

plan sponsor if it is an individually

indicating the plan document was not

organization must provide a good faith

timely updated for various specified tax

designed document. If the plan document,

estimate of the number of plan participants

law changes. When completing Form

at the time of the failure, is a pre-approved

associated with the individual retirement

8950, Plan Sponsor X should answer

document, a different method is used to

plans that are part of the group

“Yes” to question 12 and include a written

determine the plan's cycle.

submission.

attachment that explains why the

If 7b is checked “No,” include an

The number of participants reported on

determination letter application was

attachment that explains why a

this Form 8950 must be the same number

withdrawn.

determination letter application was not

that is being reported on the related Form

submitted with Form 8950 and related

8951.

Privacy Act and Paperwork Reduction

VCP submission. The attachment should

Act Notice. We ask for the information on

Line 5. Review all possible choices

refer to line 7b and include the applicant's

this form to carry out the Internal Revenue

before selecting an answer. Enter the type

name, plan number, and EIN.

laws of the United States. Sections 72,

of plan that is the subject of this VCP

Line 7c. If 7a is checked Yes, enter the

401, 403, 408, 409, 457, 4972, 4973,

submission by selecting the appropriate

plan’s remedial amendment cycle. For

4974, and 4979 and their regulations

number from the choices associated with

individually designed plans, plan sponsors

authorize us to ask for this information.

this line.

would pick one of the five cycles from

You are not required to apply for this

For this purpose, governmental section

Cycle A through Cycle E. For plans that

correction program; however, if you do,

414(d) plans are section 401(a) plans

are under the six-year cycle associated

you are required to give us the information

sponsored by a governmental entity, as

with pre-approved documents, enter either

requested on this form. We need it to

defined in section 414(d).

“pre-approved defined contribution plan”

determine whether your correction

or “pre-approved defined benefit plan,” as

If your plan type is not listed among the

proposals meet the legal requirements

applicable. To determine a plan’s cycle,

various available choices, enter 99 and

applicable to qualified retirement plans.

refer to the instructions for line 7b and

attach a detailed description of your plan.

Section 6109 and its regulations require

Rev. Proc. 2007-44.

It is expected that plan type 99 would be

you to provide your identifying number.

used in very rare circumstances.

Failure to provide the information

Line 8. If Yes, attach a written

requested on this form could delay or

explanation that provides details of the

Line 6. If “Yes” is chosen, check the

prevent processing of your application;

transaction(s). See Rev. Proc. 2013-12,

boxes indicating which Appendix C, Part II

providing fraudulent information could

section 4.13(2). Include the applicant’s

Schedules are being submitted with the

subject you to penalties.

name, plan number, and EIN at the top of

VCP submission. See Rev. Proc. 2013-12,

the attachment.

Appendix C, for descriptions of the

You are not required to provide the

Schedules.

information requested on a form that is

Line 10. See Eligibility Requirements for

subject to the Paperwork Reduction Act

the Use of VCP , earlier, and Rev. Proc.

Line 7a. VCP submissions that involve

unless the form displays a valid OMB

2013-12, section 4.02.

403(b) plans, SEPs, and SIMPLE plans

control number. Books or records relating

may skip all questions on line 7.

Line 11. If “Yes,” include an attachment

to a form or its instructions must be

Anonymous submissions may also skip all

that indicates when the determination

retained as long as their contents may

questions on line 7. However, a

letter application was submitted to the

become material in the administration of

determination letter application may need

IRS, along with the case number that has

any internal revenue law. Generally, tax

to be submitted to the IRS upon disclosure

been assigned, if known. Include the

returns and return information are

of the applicant’s identity.

applicant’s name, plan number, and EIN at

confidential, as required by section 6103.

the top of the attachment.

Line 7b. Rev. Proc. 2013-12, section

However, we may give the information to

6.05, generally requires that a

the Department of Justice for civil and

Line 12. This question should be

determination letter application be

criminal litigation, and to other federal

answered “Yes,” if:

included with a VCP submission if a

agencies, as provided by law. We may

A past determination letter application

section 401(a) plan document or

give it to cities, states, the District of

was withdrawn by the plan sponsor; or

operational failure (not a demographic

Columbia, and U.S. commonwealths or

A past determination letter application

failure) is being corrected by a retroactive

possessions to administer their tax laws.

was closed as incomplete due to a failure

plan amendment. However, no

We may also disclose this information to

to respond to a question and the VCP

determination letter application is required

other countries under a tax treaty, to

submission includes qualification failures

to be submitted with a VCP submission in

federal and state agencies to enforce

that were identified during the application

the following situations:

nontax criminal laws, and to federal law

process or would have been discovered

The failure is limited to late interim

enforcement and intelligence agencies to

by the IRS had the application not been

amendments or amendments required to

combat terrorism.

withdrawn or closed as incomplete.

implement optional changes associated

The time needed to complete and file

If line 12 was checked “Yes,” attach an

with a change in tax law;

this form will vary depending on individual

explanation. Include the applicant's name,

The failure is being corrected by

circumstances. The estimated average

plan number, and EIN at the top of the

adopting IRS model amendments or an

time is:

attachment.

IRS pre-approved prototype or volume

Consider the following example: Plan

submitter plan on which the plan sponsor

has reliance;

Sponsor X submits a determination letter

-4-

Form 8950 - Instructions January 2013 Page 4

Related Articles

Related forms

Related Categories