The information requested in Revenue Procedure 2015-27 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.
Applicants under the Voluntary Correction Program (VCP) must file Forms 8950 and 8951, and the appropriate scheduled(s) to the applicable part of the model compliance statement, in order to request written approval from the IRS for a correction of a qualified plan that has failed to comply with the requirements of the Internal Revenue Code.
Rev. Proc. 2015-28 is guidance that is essential to further a policy priority of the Administration to encourage and facilitate use of automatic contribution features in defined contribution retirement plans. These features significantly increase employeesâ participation in employer sponsored retirement plans and boost employment security for American workers. The revenue procedure accomplishes this goal by reducing correction burdens under the IRSâs EPCRS correction program for plans with automatic contribution features that satisfy certain requirements (including notifying affected employees of the corrections). A senior Treasury Department official intends to roll out this policy initiative at a retirement policy conference in late morning, April 2, 2015. If clearance of the guidance were delayed until after the retirement policy conference, it would diminish the impact of the guidance and would be a missed opportunity to further this policy priority of the Administration. The Department of Labor (DOL) is also interested in this EPCRS guidance, and, in response to very recent unexpected comments from DOL, a single intended piece of guidance making changes to EPCRS has been broken into two companion items of guidance, both of which are high priority. The second item in the EPCRS package is Rev. Proc. 2015-28. We ask that OMB approve the collection of information in time for release of Rev. Proc. 2015-28 to the public by mid morning, April 2, 2015. The Employee Plans division of the IRS and the Chief Counselâs Office of the IRS have consulted with stakeholders and drafted the guidance in order to take all practicable steps to minimize the burden of the collection of information.
US Code:
26 USC 501
Name of Law: Exemption from tax on corporations, certain trusts, etc.
US Code:
26 USC 405
Name of Law: Individual retirement accounts
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
The additional 5643 hours is to account for additional information collection requirements included in Revenue Procedure 2015-28.
The collection of information, in Rev. Proc.2015-28, is in sections 4.01 and 4.02. This information is required to enable the Commissioner, Tax Exempt and Government Entities Division of the Internal Revenue Service to consider the issuance of various types of closing agreements and compliance statements. This information will be used to issue closing agreements and compliance statements to allow individual plans to continue to maintain their tax favored status. As a result, favorable tax treatment of the benefits of the eligible employees is retained. The addition of these new procedure will result in an increase in the number of responses by 1,075 and annual burden by 5,643 hours.
The revenue procedure provides simplified and less burdensome correction methods for certain retirement plan failures involving elective deferrals. In order to be eligible for these safe harbor correction methods, a plan sponsor must satisfy certain conditions, including a participant notice requirement. To satisfy this requirement, a notice must be given to an affected participant within forty-five days after correct deferrals begin that includes the following content: (i) general information relating to the failure, such as the percentage of eligible compensation that should have been deferred and the approximate date that the compensation should have begun to be deferred (the general information need not include a statement of the dollar amounts that should have been deferred); (ii) a statement that appropriate amounts have begun to be deducted from compensation and contributed to the plan (or that appropriate deductions and contributions will begin shortly); (iii) a statement that corrective contributions relating to missed matching contributions have been made (or that corrective contributions will be made) (information relating to the date and the amount of corrective contributions need not be provided); (iv) an explanation that the affected participant may increase his or her deferral percentage in order to make up for the missed deferral opportunity, subject to applicable limits under section 402(g); and (v) the name of the plan and plan contact information (including name, street address, e-mail address, and telephone number of a plan contact).
$0
No
No
No
No
No
Uncollected
Vernon Carter 202 622-6060
Reginfo record details
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.
Form 8951 Form 8951--Compliance Fee for Employee Plans Voluntary Correction Program
1545-1673 Supporting Statement.doc
Form 8951--Compliance Fee for Employee Plans Voluntary Correction Program