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 employees’ 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 IRS’s 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 Counsel’s 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
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