Rev Proc 2008-50-Employee Plans Compliance Resolution System (RP 2006-27 ); Form 8950-App For Voluntary Correction Program; Form 8951-Compliance Fee for Emp Plans Voluntary Correction Program
ICR 201208-1545-035
OMB: 1545-1673
Federal Form Document
⚠️ Notice: This information collection may be outdated. More recent filings for OMB 1545-1673 can be found here:
Rev Proc 2008-50-Employee
Plans Compliance Resolution System (RP 2006-27 ); Form 8950-App For
Voluntary Correction Program; Form 8951-Compliance Fee for Emp
Plans Voluntary Correction Program
The information requested in Revenue
Procedure 2008-50 is required to enable the Internal Revenue
Service to make determinations on the issuance of various types of
closing agreements and compliance statements. The issuance of the
agreements and statements allow individual plans to maintain their
tax-qualified status. As a result, the favorable tax treatment of
the benefits of the eligible employees is retained. The purpose of
Form 8950 is to create a standardized application for the Voluntary
Correction with Service Approval Program (VCP). VCP is an integral
part of the Employee Plans Compliance Resolution System (EPCRS) as
currently contained in Rev Proc 2008-50 and any updates. This form
will help make the VCP program more efficient and able to handle a
growing number of cases that come before the Service. This is in
response to the duty placed on the Secretary of the Treasury by
Section 1101 (b) of the Pension Protection Act of 2006 to continue
to update and improve the EPCRS. Form 8951 is used in determining
and submitting the proper compliance fee. A compliance fee is
required with each application for an Employee Plan Voluntary
Correction Program Submission. The compliance fees are set forth in
section 12.02 of Revenue Procedure 2008-50 and subsequent
revisions.
US Code:
26
USC 401 Name of Law: Qualified pension, profit-sharing, and
stock bonus plans
US Code: 26
USC 403 Name of Law: Taxation of employee annuities
US Code: 26
USC 404 Name of Law: Deduction for contributions of an employer
to anemployees' trust or annuity plan and compensation u
US Code: 26
USC 501 Name of Law: Exemption from tax on corporations,
certain trusts, etc.
Based upon the trend in VCP
submissions filed with the IRS over the past 2 years, the number of
responses/filers is being adjusted. This results in a 9,414
decrease in the total annual responses for this collection. New
Forms 8950 and 8951 result in a 22,948 net increase in the total
annual burden hours for this collection. -Form 8950 is a new form.
It must be filed along with a VCP submission in order to request
written approval from the IRS for correction of a Qualified Plan,
403(b) Plan, SEP, or SIMPLE IRA Plan that has experienced some sort
of failure to comply with applicable requirements of the Internal
Revenue Code and Revenue Procedure 2008-50. This collection results
in 49,050 burden hours. -Form 8951 is a new form. Per Revenue
Procedure 2008-50, a compliance fee is required with each
application for an Employee Plan Voluntary Correction Program
Submission. Form 8951 is created to simplify and facilitate with
determining and submitting the proper compliance fee. This new
collection results in 50,100 burden hours.
$0
No
No
No
No
No
Uncollected
Kathleen Hermann
2022839635
No
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.