Form 8951 - User Fee For Application For Voluntary Correction Program (Vcp) Page 3

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3
Form 8951 (Rev. 9-2016)
Page
Multiemployer or multiple employer
• Line 8(f). Do not include any payment at
(a) Egregious qualification failures;
this time if the plan is a section 457(b) plan.
plans:
(b) SEP, SARSEP, or SIMPLE IRA plans
If the IRS chooses to process the
that choose to allow excess amounts to
If a submission relates to a multiemployer
submission, it will collect a mutually
remain within the affected IRAs;
or multiple employer plan, the general user
acceptable sanction payment when the
fee will normally be determined in
(c) Situations where the plan sponsor
applicant signs a special closing
accordance with the instructions in Step 1
has requested that the IRS waive the
agreement.
and in the first paragraph of this Step 2.
additional 10% tax imposed by section
However, if all of the described failures in
Determining the Proper User Fee
72(t) on certain plan distributions.
the submission apply to fewer than all of
Go to the correcting plan errors web
Step 1:
the employers under the plan, the plan
page on IRS.gov to find additional
administrator may choose to have the
On line 5, enter the total number of plan
information. If applicable, the IRS will
general user fee computed separately for
participants at the end of the plan year
discuss the matter with the plan sponsor
each affected employer based on the
recorded on line 6(f) of the retirement
and solicit the additional payment during
participants attributable to that employer
plan’s most recently filed Form 5500 return.
the review of the VCP submission.
rather than the total participants of the
Filers of Form 5500-SF or EZ will use the
entire plan. This may apply, for example,
equivalent line item specified on their
Paperwork Reduction Act Notice. We
when the plan administrator believes each
forms. For applicants that are exempt from
ask for the information on this form to carry
failure is attributable in whole or in part to
filing a Form 5500 series return, enter the
out the Internal Revenue laws of the United
data, information, actions, or inactions that
number of plan participants determined as
States. If you want to have your VCP
are within the control of the employers
of the last day of the most recently ended
submission approved by the IRS, you are
rather than the multiemployer or multiple
plan year. However, if this information is
required to give us the information. We
employer plan (such as attribution in whole
not available at the time the VCP
need it to determine whether your
or in part to the failure of an employer to
submission is being mailed to the IRS, it is
correction proposals meet the legal
provide the plan administrator with full and
acceptable to use the most recently ended
requirements applicable to qualified
complete information).
prior plan year for which information on the
retirement plans.
If you are using this special methodology
number of plan participants is available.
You are not required to provide the
to determine the general user fee, attach a
The exception does not apply if the VCP
information requested on a form that is
written explanation that details how the
submission is mailed to the IRS more than
subject to the Paperwork Reduction Act
user fee was determined. When completing
seven months after the close of the most
unless the form displays a valid OMB
Form 8951, the plan administrator would
recently ended plan year preceding the
control number. Books or records relating
complete line 5 in the normal manner by
date of the VCP submission. Plans that
to a form or its instructions must be
using the total participant count reported
have terminated and filed a final Form
retained as long as their contents
on the most recently filed Form 5500 series
5500 series return should enter the number
may become material in the administration
return for the entire plan.
of participants on the return filed for the
of any Internal Revenue law. Generally, tax
year prior to the year all assets were
Step 3:
returns and return information are
distributed. Your entry should correspond
confidential, as required by section 6103.
If a VCP submission consists solely of
to the information on Form 8950, line 4e.
multiple failures that qualify for reduced
The estimated average time is:
Step 2:
user fees, then the user fee amount will be
Recordkeeping .
.
.
. 3 hr., 21 min.
Single employer plans:
the lesser of: the sum of the reduced user
Learning about the
fee amounts or the general user fee
For those VCP submissions that pertain to
law or the form .
.
.
. 2 hr., 39 min.
amount. If the total of the applicable
a qualified retirement plan under section
reduced user fee amounts is less than the
Preparing the form .
.
. 3 hr., 45 min.
401(a) or 403(b) that do not qualify for any
general user fee amount for qualified
reduced user fees, the general user fee is
Copying, assembling, and
retirement plans under sections 401(a) and
based on the number of plan participants.
sending the form to the IRS 0 hr., 16 min.
403(b), include a worksheet showing how
If you have comments concerning the
you determined the user fee for your
accuracy of this time estimate or
submission.
suggestions for making this form
Note: Additional payments to the IRS may
simpler, we would be happy to hear from
be due under certain situations that involve:
you. You can send your comments to:
Internal Revenue Service
Tax Forms and Publications Division
1111 Constitution Ave. NW, IR-6526
Washington, DC 20224
Do not send this form to this address.
Instead, see Where To File.

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