Form 8951 - Compliance Fee For Application For Voluntary Correction Program (Vcp) Page 3
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53
Form 8951 (Rev. 8-2014)
Page
Section references are to Rev. Proc.
account for the same amount as the
is being mailed to the IRS, it is
2013-12, unless otherwise noted.
check. If the electronic fund transfer
acceptable to use the most recently
cannot be processed for technical
ended prior plan year for which
Future Developments
reasons, you authorize the IRS to
information on the number of plan
process the copy of your check. The
participants is available. The exception
For the latest information about
electronic fund transfer from your
does not apply if the VCP submission is
developments related to Form 8951 and
account will usually occur within 24
mailed to the IRS more than seven
its instructions, such as legislation
months after the close of the most
hours, which is faster than a check is
enacted after they were published, go to
normally processed, so it is important
recently ended plan year preceding the
that you have sufficient funds available in
date of the VCP submission. Plans that
your checking account when you send
have terminated and filed a final Form
General Instructions
the IRS your check. Your financial
5500 series return should enter the
institution will not return your cancelled
number of participants on the return filed
Purpose of Form
check to you.
for the year prior to the year all assets
were distributed (see section 12.08).
Generally, a compliance fee is required
Specific Instructions
Your entry should correspond to the
with each Voluntary Correction Program
information on Form 8950, line 4e.
(VCP) submission. Use Form 8951 to
Lines 1-5
determine and submit the applicable
Step 2 (for single employer plans):
compliance fee for the VCP submission.
For those VCP submissions that do not
Lines 1 through 5 should correspond to
Compliance fees are shown on pages 1
qualify for any of the reduced
the information you entered for line 1a,
and 2 (see section 12).
compliance fee amounts on line 8, the
1i, 4b, 4a, and 4e, respectively, on the
amount of the general compliance fee is
related Form 8950, Application for
Where To File
determined by checking one of the
Voluntary Correction Program (VCP)
Include Form 8951 and the compliance
boxes on line 7 based on the number of
under the Employee Plans Compliance
participants reported on line 5. The
fee with your VCP submission.
Resolution System (EPCRS).
general compliance fee is based on the
Send the documents to:
Compliance Fee
number of plan participants (see section
Internal Revenue Service
12.02(1)).
Line 7
P.O. Box 12192
Step 2 (for multiemployer or multiple
Covington, KY 41012-0192
The chart on line 7 is the general
employer plans): If a submission relates
VCP submissions shipped by express
compliance fee schedule that applies to
to a multiemployer or multiple employer
mail or a delivery service should be sent
VCP submissions involving qualified
plan, the general compliance fee will
to:
plans and 403(b) plans (see section
normally be determined in accordance
12.02(1)). Reduced compliance fee
Internal Revenue Service
with the instructions in Step 1 and in the
amounts are listed on lines 8(f)-(i) for
201 West Rivercenter Blvd
first paragraph of this Step 2. However, if
VCP submissions that involve: SEP,
Attn: Extracting Stop 312
all of the described failures in the
SIMPLE IRA or SARSEP retirement
Covington, KY 41011
submission apply to fewer than all of the
plans; group submissions; terminating
employers under the plan, the plan
Payment of Compliance Fee
orphan plans; and minor modifications of
administrator may choose to have the
a previously issued compliance
general compliance fee computed
Generally, unless your submission is for
statement.
separately for each affected employer
a terminating orphan plan, as defined in
based on the participants attributable to
section 5.03, a compliance fee is due.
Lines 8(a)-(e)
that employer rather than the total
Attach a check to Form 8951 payable
Lines 8(a)-(e) also include reduced
participants of the entire plan. This
to “United States Treasury” for the full
compliance fee amounts if the
applies when the plan administrator
amount of the compliance fee. If you do
submission for a qualified plan or 403(b)
believes each failure is attributable in
not include the full amount of the
plan is limited to certain specified
whole or in part to data, information,
compliance fee, your application may be
failures. In some cases, the compliance
actions, or inactions that are within the
returned. In addition, include a
fee for qualified plans and 403(b) plans
control of the employers rather than the
photocopy of the check with your
will be the lesser of the general
multiemployer or multiple employer plan
application (see sections 11.05 and
compliance fee amount specified on line
(such as attribution in whole or in part to
12.09).
7 or the sum of the applicable reduced
the failure of an employer to provide the
fee amounts specified on line 8. See
If you have multiple plans (for example
plan administrator with full and complete
Determining the Proper Compliance Fee
a profit-sharing and a money purchase
information) (see section 10.12).
next, and section 12.
plan), submit a separate VCP submission
If you are using this special
(including a separate Form 8951) for
Determining the Proper
methodology to determine the general
each plan. Submit a separate check,
compliance fee, do not complete line 7
Compliance Fee
including a photocopy of the check, for
and attach a written explanation that
each VCP submission.
details how the compliance fee was
Step 1: On line 5, enter the total
Your check may be converted to an
determined and how the submission
number of plan participants recorded on
electronic fund transfer. An electronic
satisfies the conditions in section 10.12.
line 6(f) of the retirement plan’s most
fund transfer is the process by which the
When completing Form 8951, the plan
recently filed Form 5500 return. Filers of
IRS electronically instructs your financial
Form 5500-SF or EZ will use the
administrator would complete line 5 in
institution to transfer funds from your
the normal manner by using the total
equivalent line item specified on their
account to the Treasury's account,
participant count reported on the most
forms which is line 5b. For applicants
rather than processing your check. By
recently filed Form 5500 series return for
that are exempt from filing a Form 5500
sending your completed, signed check
the entire plan.
series return, enter the number of plan
to the IRS, you authorize the IRS to copy
participants determined as of the last
your check and to use the account
day of the most recently ended plan
information from your check to make an
year. However, if this information is not
electronic fund transfer from your
available at the time the VCP submission
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