The IRS is Making it Easier for Retirement Plan Sponsors
Excerpted from the SSA/IRS Reporter, Fall 2003
Publication 1693 (Rev. 9-03) Catalog Number 15060W

On June 5, 2003, the IRS issued Revenue Procedure 2003-44, updating the Employee Plans Compliance Resolution System (EPCRS), EPCRS is the IRS’ comprehensive system of correction programs for sponsors of retirement plans that have failed to meet the requirements of the Internal Revenue Code. The new procedure significantly streamlines and simplifies the EPCRS program.

Coinciding with the issuance of the new procedure, the IRS also made available some online tools to help practitioners and plan sponsors. Go to the Retirement Plans Web site at http://www.irs.gov/ep. Click on “More Topics” in the Topics section (lower left column) and click on the heading titled “Correction.” This page includes:

• A red-lined version of Rev. Proc. 2033-44 comparing it to the changes made by the new procedure.
• Under summary of changes, there is an EPCRS Comparison Chart describing the differences between the new procedure and its predecessor.
• A topical index directing you to the appropriate section numbers.
• A slide presentation showing the changes made by Rev. Proc. 2003-44.

Joyce Kahn, manager of Employee Plans Voluntary Compliance, said, “We are working on more tools to help our stakeholders.”

New Retirement Plan Correction Programs CD-ROM Available for Free

A new CD-ROM explaining the programs provided by the IRS, the U.S. Department of Labor and the Pension Benefit Guaranty Corporation for retirement plan sponsors to correct retirement plan mistakes is now available. The CD includes detailed information on the IRS’ recently released Revenue Procedure 2003-44 that contains the expanded and simplified Empolyee Plans Compliance Resolution Program or EPCRS. The importance of regular review of retirement plan operations is described in video clips on the CD. The U.S. Department of Labor self-correction programs for certain filing errors and specific financial transaction errors are detailed. Benefit professionals and payroll managers will find directions for submitting applications as well as copies of frequently used IRS forms and publications related to retirement plans.

A free copy of the new CD-ROM, Retirement Plan Correction Programs, is available online at http://www.irs.gov/ep. Look under “Topics” in the lower left hand column and click on “Educational Services” to order Publication 4050.

Retirement Plan Deadline is Almost Here!

Tick, tock, tick tock. Time is running out for some adopting employers of Master & Prototype (M&P) and Volume Submitter plans to adopt updates to their plans for recent law changes. In many cases, the employers will also have to submit a determination letter request to keep their plans qualified.

For additional information on the deadline, check with your benefits professional – your M&P or Volume Submitter plan provider. You can also get the latest information on the deadline at the Retirement Plans Web site at http://www.irs.gov/ep.

Both businesses and their employees enjoy tax benefits from retirement plans that are in compliance with the law. Failure to act by the deadline could cost a retirement plan its tax-favored status.

Act now: Don’t lose valuable tax benefits.

Speaking of the IRS

Legal Mutual has added the latest IRS “HELP” telephone numbers and web site links to its web site under “Resources – National” for your convenience. We hope you find this easy quick reference of value.

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