Advisory Committee on Tax Exempt and Government Entities (ACT ...

Improving the Employee Plans Compliance Resolution System: A Roadmap For Greater ComplianceCorrection of Standardized Operational Failures); TVC as VCT 37 (Voluntary Correctionof Tax Sheltered Annuity Failures); and APRSC as “SCP” (Self-Correction Program). 38The term “Walk-In CAP” was eliminated. In addition, a new program, VCGroup, 39 wasadded under which master and prototype Plan Sponsors, insurers administering 403(b)plans, and third-party administrators could receive compliance statements that affectmore than one Plan Sponsor. Another new program was added that permittedanonymous submissions referred to as the “John Doe Program” 40 under VCP.Rev. Proc. 2002-47 41 permitted sponsors of eligible 457(b) plans to submit requests inconnection with but “outside of” EPCRS; 42 it increased the de minimis distributionamount from $20 to $50, and provided a new de minimis exception under which PlanSponsors need not seek refunds of overpayments of $100 or less; and made clear thatEPCRS was available to correct problems with terminated plans.Rev. Proc. 2003-44 43 represented a major procedural overhaul of EPCRS, making it atruly integrated system rather than an amalgamation of several independentlydeveloped programs. Among other changes, 2003-44 consolidated all voluntarycorrection procedures requesting Service approval into a single program, the “VoluntaryCorrection Program” or “VCP,” and provided a fixed fee schedule for all VCPsubmissions.The latest iteration of EPCRS is set out in Rev. Proc. 2006-27. 44features, 2006-27 provides:Among other new• that the Service will waive the section 4974 excise tax for failure tosatisfy minimum distribution requirements, and that the Service willnot pursue other excise taxes under sections 4972 and 4979 inappropriate circumstances;• that VCP and Audit CAP now apply to terminating orphan plans,and that the Service may not require full correction and may waivethe VCP fee for such plans;• a special fee schedule for plans in the determination letter processfound to be nonamenders for tax law changes;37 Id., § 10.13.38 Id., Part IV.39 Id., § 10.14.40 Id., § 10.12.41 IRB 2002-29.42 See, NPRM Preamble, Compensation Deferred Under Eligible Deferred Compensation Plan, 67 Fed. Reg. 30826, 30830-1(2002) (inviting public comment on the ways in which EPCRS might be expanded to cover eligible deferred compensationarrangements).43 2003-35 I.R.B. 1051.44 2006-22 I.R.B. 945.ADVISORY COMMITTEE ON TAX EXEMPT AND GOVERNMENT ENTITIES (ACT) June 11, 2008 14