RULES PROVIDED ON USER FEES FOR EMPLOYEE PLANS AND EXEMPT ORGANIZATIONS.

Rev. Proc. 97-8

                          TABLE OF CONTENTS

This revenue procedure provides guidance for complying with the user fee program of the Internal Revenue Service as it pertains to requests for letter rulings, determination letters, etc. on matters under the jurisdiction of the Assistant Commissioner (Employee Plans and Exempt Organizations); requests for compliance statements under the Voluntary Compliance Resolution (VCR) program and the Standardized VCR Procedure (SVP) described in Rev. Proc. 94-62, 1994-2 C.B. 778, as modified by Rev. Proc. 96-29, 1996-16 I.R.B. 24; requests for correction statements under the Tax Sheltered Annuity Voluntary Correction Program (TVC program) described in Rev. Proc. 95-24, 1995-1 C.B. 694, as modified by Rev. Proc. 96-50, 1996-47 I.R.B. 10; and requests for administrative scrutiny determinations under Rev. Proc. 93-41, 1993-2 C.B. 536.

SECTION 2. CHANGES

01. FEE SCHEDULE. Adjustments have been made in several of the fees. Increases have been made in the following categories: (1) requests for waivers of the minimum funding standard, from $3,500 to $3,750 for waivers of $1,000,000 or more, and from $1,500 to $1,625 for requests for waivers of less than $1,000,000; (2) requests for letter rulings under Rev. Proc. 90-49 from $200 to $250; (3) requests for administrative scrutiny determinations with respect to separate lines of business, from $3,250 to $3,450 for the first separate line of business for which a determination is requested, and from $1,000 to $1,100 for each additional line of business for which a determination letter is requested; (4) request for advance approval of scholarship grant-making procedures of a private foundation that has an agreement for administration of the scholarship program with the National Merit Scholarship Corp. or a similar organization administering a scholarship program shown to meet Service requirements, from $100 to $200; and (5) requests for confirmation letter rulings dealing with private benefits/inurement issues on the tax-exempt status of the organization arising from proposed tax- exempt bond financing, from $600 to $700. Reductions have been made in the following categories: (1) change in plan year, from $150 to $100; (2) sponsoring organization's minor modification of M & P mass submitter's plan document, per adoption agreement, from $400 to $200; and (3) nonmass submission (new or amended) by M & P sponsoring organization, per adoption agreement, from $3,000 to $2,000.

.02 NEW CATEGORY. A new category has been added to the user fee schedule as a result of the Small Business Job Protection Act of 1996 P.L. 104-188, enacted August 20, 1996): requests for waiver of the excise tax, under section 4971(f) of the Internal Revenue Code, on failure to pay a liquidity shortfall. For requests for a waiver of $1,000,000 or more the fee is $3,750; for requests for waiver of less than $1,000,000 the fee is $1,625.

SECTION 3. BACKGROUND

.01 LEGISLATION AUTHORIZING USER FEES. Section 10511 of the Revenue Act of 1987 P.L. 100-203, 101 Stat. 1330-382, 1330-446, enacted December 22, 1987, directed the Secretary of the Treasury or delegate (the "Secretary") to establish a program requiring the payment of user fees for requests to the Service for letter rulings, opinion letters, determination letters, and similar requests. The fees charged under the program (1) were to vary according to categories or subcategories established by the Secretary; (2) were to be determined after taking into account the average time for, and difficulty of, complying with requests in each category and subcategory; and (3) were to be payable in advance. The Secretary was to provide for exemptions and reduced fees under the program as the Secretary determined to be appropriate, but the average fee applicable to each category must not be less than the amount specified in the statute. The fees were to apply to requests made on or after February 1, 1988, and before September 30, 1990. Section 11319 of the Omnibus Budget Reconciliation Act of 1990, Pub. L. 101- 508, 1991-2 C.B. 481, 511, extended the time during which the user fees would be applicable through September 30, 1995. Section 743 of the Uruguay Round Agreements Act, Pub. L. 103-465, 1995-1 C.B. 230, 239, extended the time during which the user fees will be applicable through September 30, 2000. Section 2 of Pub. L. 104-117, Tax Relief to Operation Joint Endeavor Participants Act, 1996-34 I.R.B. 19, extended the time during which the user fees will be applicable through September 30, 2003.

.02 RELATED REVENUE PROCEDURES. The various revenue procedures that require payment of a user fee, a voluntary compliance fee under the VCR program or the SVP, a voluntary correction fee under the TVC program, or an administrative scrutiny determination user fee are described in the appendix to this revenue procedure.

SECTION 4. SCOPE

.01 REQUESTS TO WHICH USER FEES APPLY. In general, user fees apply to all requests for letter rulings, opinion letters, notification letters, determination letters, and advisory letters submitted by or on behalf of taxpayers, sponsoring organization or other entities as described in this revenue procedure. Further, voluntary compliance fees applicable to requests under the VCR program or the SVP, voluntary correction fees applicable to requests under the TVC program, and administrative scrutiny determination user fees described in Rev. Proc. 93-41, are collected through the user fee program described in this revenue procedure. Requests to which a user fee, a voluntary compliance fee, a voluntary correction fee, or an administrative scrutiny determination user fee is applicable must be accompanied by the appropriate fee as determined from the fee schedule set forth in section 6 of this revenue procedure. The fee may be refunded in limited circumstances as set forth in section 10.

.02 REQUESTS AND OTHER ACTIONS THAT DO NOT REQUIRE THE PAYMENT OF A USER FEE. Actions which do no require the payment of a user fee include the following:

(1) Requests for information letters as defined in Rev. Proc. 97-4.

(2) Elections pertaining to automatic extentions of time under section 301.9100-1T.

(3) Use of Form 5305, Individual Retirement Trust Account, or Form 5305-A, Individual Retirement Custodial Account, in order to adopt and individual retirement account under section 408(a). The form should not be filed with Service.

(4) Use of Form 5305-SEP, Simplified Employee Pension-Individual Retirement Accounts Contribution Agreement, by an employer to make an agreement to provide benefits to all eligible employees under a SEP described in section 408(k). The form should not be filed with the Service.

(5) In general, plan amendments whereby sponsors amend their plans by adopting, word-for-word, the model language contained in a revenue procedure which states that the amendment should not be submitted to the Service and that the Service will not issue new opinion, notification, advisory, ruling or determination letters for plans that are amended solely to add the model language (see, for example, Rev. Proc. 94-13, 1994-1 C.B. 565; Rev. Proc. 95-34, 1995-2 C.B. 385; and Rev. Proc. 96-49, 1996-43 I.R.B. 74).

(6) Change in accounting period or accounting method permitted to be made by published automatic change revenue procedure.

.03 EXEMPTIONS FROM THE USER FEE REQUIREMENTS. The following exemptions apply to the user fee requirements. These are the only exemptions that apply:

(1) Departments, agencies, or instrumentalities of the United States that certify that they are seeking a letter ruling, determination letter, opinion letter or similar letter on behalf of a program or activity funded by federal appropriations. The fact that a user fee is not charged has no bearing on whether and applicant is treated as an agency or instrumentality of the United States for purposes of any provisions of the Code.

(2) Requests as to whether a worker is and employee for federal employment taxes and federal income tax withholding purposes (chapters 21, 22, 23, and 24 of subtitle C of the Code) submitted on Form SS-8, Information for Use in Determining Whether a Worker is an Employee for Federal Employment Taxes and Income Tax Withholding, or its equivalent. Such a request may be submitted in connection with an application for a determination on the qualification of a plan when it is necessary to determine whether and employer-employee relationship exists. See section 6.13 of Rev. Proc. 97-6, page [INSERT #], this bulletin. In that case, although no user fee applies to the request submitted on Form SS-8, the applicable user fee must be paid in connection with the application for determination on the plan's qualification.

SECTION 5. DEFINITIONS

The followings terms used in this revenue procedure are defined in the pertinent revenue procedures referred to below, which are described in the appendix:

Administrative scrutiny

The amount of the user fee, compliance fee or correction fee payable with respect to each category or subcategory of submission is as set forth in the following schedule.

                              CATEGORY                             FEE

.01 MATTERS HANDLED BY THE NATIONAL OFFICE. Requests should either be mailed to the appropriate address set forth in this section 7.01, or hand delivered to the drop box at the 12th Street entrance of 1111 Constitution Avenue, N.W., Washington, D.C. No dated receipt will be given at the drop box.

(1) Employee plans letter rulings under Rev. Proc. 78-37, 79-61, 79-62, 87-50, 90-49, 94-41, 94-42 or 97-4:

     Internal Revenue Service

     Internal Revenue Service

     Internal Revenue Service

     Internal Revenue Service

     Internal Revenue Service

     Internal Revenue Service

     Internal Revenue Service

                      EMPLOYEE PLANS APPLICATIONS

.01 REQUESTS INVOLVING SEVERAL OFFICES. If a request dealing with only one transaction involves more than one of the offices within the National Office (for example, one issue is under the jurisdiction of the Associate Chief Counsel (Domestic) and another issue is under the jurisdiction of the Assistant Commissioner (Employee Plans and Exempt Organizations)), only one fee applies, namely the highest fee that otherwise would apply to each of the offices involved. See Rev. Proc. 97-1, this bulletin, for the user fees applicable to issues under the jurisdiction of the Associate Chief Counsel (Domestic), the Associate Chief Counsel (Employee Benefits and Exempt Organizations), the Associate Chief Counsel (Enforcement Litigation), or the Associate Chief Counsel (International).

.02 REQUESTS INVOLVING SEVERAL FEE CATEGORIES. If a request dealing with only one transaction involves more than one category, only one fee applies, namely the highest fee that otherwise would apply to each of the categories involved.

.03 REQUESTS INVOLVING SEVERAL ISSUES. If a request dealing with only one transaction involves several issues, or a request for a change in accounting method dealing with only one item or sub-method of accounting involves several issues, or a request for a change in accounting period dealing with only one item involves several issues, the request is treated as one request. Therefore, only one fee applies, namely the fee that applies to the particular category or subcategory involved. The addition of a new issue relating to the same transaction will not result in an additional fee, unless the issue places the transaction in a higher fee category.

.04 REQUESTS INVOLVING SEVERAL UNRELATED TRANSACTIONS. If a request involves several unrelated transactions, or a request for a change in accounting method involves several unrelated items or sub- methods of accounting, or a request for a change in accounting period involves several unrelated items, each transaction or item is treated as a separate request. As a result, a separate fee will apply for each unrelated transaction or item. An additional fee will apply if the request is changed by the addition of an unrelated transaction or item not contained in the initial submission.

.05 REQUESTS FOR SEPARATE LETTER RULINGS FOR SEVERAL ENTITIES. Each entity involved in a transaction (for example, an exempt hospital reorganization) that desires a separate letter ruling in its own name must pay a separate fee regardless of whether the transaction or transactions may be viewed as related. In certain situations, however, a reduced fee may be charged. See sections 6.01(12)(d) and (e) and 6.12(6)(c) of this revenue procedure.

SECTION 9. PAYMENT OF FEE

.01 METHOD OF PAYMENT. Each request to the Service for a letter ruling, determination letter, opinion letter, etc. must be accompanied by a check or money order, payable to the Internal Revenue Service, in the appropriate amount. Taxpayers should not send cash.

.02 TRANSMITTAL FORMS. Form 8717, User Fee for Employee Plan Determination Letter Request, and Form 8718, User Fee for Exempt Organization Determination Letter Request, are intended to be used as attachments to determination letter applications. Space is reserved for the attachment of the applicable user fee check or money order. No similar form has been designed to be used in connection with requests for letter rulings, opinion letters, notification letters, advisory letters, compliance statements, correction statements or administrative scrutiny determinations.

.03 EFFECT OF NONPAYMENT OR PAYMENT OF INCORRECT AMOUNT. It will be the general practice of the Service that:

(1) The respective offices within the Service that are responsible for issuing letter rulings, determination letters, etc. will exercise discretion in deciding whether to immediately return submissions that are not accompanied by a properly completed check or money order or that are accompanied by a check or money order for less than the correct amount. In those instances where the submission is not immediately returned, the requester will be contacted and given a reasonable amount of time to submit the proper fee. If the proper fee is not received within a reasonable amount of time, the entire submission will then be returned. However, the respective offices of the Service, in their discretion, may defer substantive consideration of a submission until proper payment has been received.

(2) An application for a determination letter will not be returned merely because Form 8717 or Form 8718 was not attached.

(3) The return of a submission to the requester may adversely affect substantive rights if the submission is not perfected and resubmitted to the Service within 30 days of the date of the cover letter returning the submission. Examples of this are: (a) where an application for a determination letter is submitted prior to the expiration of the remedial amendment period under section 401(b) and is returned because no user fee was attached, the submission will be timely if it is resubmitted by the expiration of the remedial amendment period or, if later, within 30 days after the application was returned; and (b) where an application for exemption under section 501(c)(3) is submitted before expiration of the period provided by section 1.508-1(a)(2) and is returned because no user fee was attached, the submission will be timely if it is resubmitted before expiration of the period provided by section 1.508-1(a)(2) or within 30 days, whichever is later.

(4) If a check or money order is for more than the correct amount, the submission will be accepted and the amount of the excess payment will be returned to the requester.

SECTION 10. REFUNDS

.01 GENERAL RULE. In general, the fee will not be refunded unless the Service declines to rule on all issues for which a ruling is requested. In the case of a request for a letter ruling, if the case has been closed by the Service because essential information has not been submitted timely, the request may be reopened and treated as a new request, but the taxpayer must pay another user fee before the case can be reopened. See section 11.04(4) of Rev. Proc. 97-4, page 119, this Bulletin.

.02 EXAMPLES

(1) THE FOLLOWING SITUATIONS ARE EXAMPLES OF SITUATIONS IN WHICH THE FEE WILL NOT BE REFUNDED:

(a) The request for a letter ruling, determination letter, etc. is withdrawn at any time subsequent to its receipt by the Service, unless the only reason for withdrawal is that the Service has advised the requester that a higher user fee than was sent with the request is applicable and the requester is unwilling to pay the higher fee.

(b) The request is procedurally deficient, although accompanied by the proper fee and is not timely perfected by the requester. When there is a failure to timely perfect the request, the case will be considered closed and the failure to perfect will be treated as a withdrawal for purposes of this revenue procedure.

(c) A letter ruling, determination letter, etc. is revoked in whole or in part at the initiative of the Service. The fee paid at the time the original letter ruling, determination letter, etc. was requested will not be refunded.

(d) The request contains several issues and the Service rules on some, but not all, of the issues. The highest fee applicable to the issues on which the Service rules will not be refunded.

(e) The taxpayer asserts that a letter ruling the taxpayer received covering a single issue is erroneous or not responsive (other than an issue on which the Service has declined to rule) and requests reconsideration. The Service, upon reconsideration, does not agree that the letter ruling is erroneous or is not responsive. The fee accompanying the request for reconsideration will not be refunded.

(f) The situation is the same as described in subparagraph (e) of this section 10.02(1) except that the letter ruling covered several unrelated transactions. The Service, upon reconsideration, does not agree with the taxpayer that the letter ruling is erroneous or is not responsive for all of the transactions, but does agree that it is erroneous as to one transaction. The fee accompanying the request for reconsideration will not be refunded except to the extent applicable to the transaction for which the Service agrees the letter ruling was in error.

(g) The request is for a supplemental letter ruling, determination letter, etc. concerning a change in facts (whether significant or not) relating to the transaction ruled on.

(h) The request is for reconsideration of an adverse or partially adverse letter ruling or a final adverse determination letter, and the taxpayer submits arguments and authorities not submitted before the original letter ruling or determination letter was issued.

(2) THE FOLLOWING SITUATIONS ARE EXAMPLES OF SITUATIONS IN WHICH THE FEE WILL BE REFUNDED:

(a) In a situation to which section 10.02(1)(h) of this revenue procedure does not apply, the taxpayer asserts that a letter ruling the taxpayer received covering a single issue is erroneous or is not responsive (other than an issue on which the Service declined to rule) and requests reconsideration. The Service agrees, upon reconsideration, that the letter ruling is erroneous or is not responsive. The fee accompanying the taxpayer's request for reconsideration will be refunded.

(b) In a situation to which section 10.02(1)(h) of this revenue procedure does not apply, the requester requests a supplemental letter ruling, determination letter, etc. to correct a mistake that the Service agrees it made in the original letter ruling, determination letter, etc., such as a mistake in the statement of facts or in the citation of a Code section. Once the Service agrees that it made a mistake, the fee accompanying the request for the supplemental letter ruling, determination letter, etc. will be refunded.

(c) The taxpayer requests and is granted relief under section 7805(b) in connection with the revocation in whole or in part, of a previously issued letter ruling, determination letter, etc. The fee accompanying the request for relief will be funded.

(d) In a situation to which section 10.02(1)(d) of this revenue procedure applied, the taxpayer requests reconsideration of the Service's decision not to rule on an issue. Once the Service agrees to rule on the issue, the fee accompanying the request for reconsideration will be refunded.

SECTION 11. REQUEST FOR RECONSIDERATION OF USER FEE

A taxpayer that believes the user fee charged by the Service for its request for a letter ruling, determination letter, etc. is either not applicable or incorrect and wishes to receive a refund of all or part of the amount paid (see section 10 of this revenue procedure) may request reconsideration and, if desired, the opportunity for an oral discussion by sending a letter to the Internal Revenue Service at the applicable Post Office Box or other address given in this section 11. Both the incoming envelope and the letter requesting such reconsideration should be prominently marked "USER FEE RECONSIDERATION REQUEST." No user fee is required for these requests. The request should be marked for the attention of:

 IF THE MATTER INVOLVES PRIMARILY:  MARK FOR THE ATTENTION OF:

01. Rev. Proc. 96-8 is superseded.

SECTION 13. EFFECTIVE DATE

This revenue procedure is effective January 6, 1997.

SECTION 14. PAPERWORK REDUCTION ACT

The collection of information contained in this revenue procedure have been reviewed and approved by the Office of Management and Budget in accordance with the Paperwork Reduction Act (44 U.S.C. 3507) under control number 1545-1520.

An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid control number.

The collections of information in this revenue procedure are in sections 6.01(12)(c), 6.12(6)(a), 6.13(1) and 11. This information is required to substantiate that a taxpayer or an exempt organization seeking to pay a reduced user fee with respect to a request for a letter ruling is entitled to pay the reduced fee; to identify the user fee category and corresponding fee required to be paid with respect to determination letter reuqests; to request reconsideration of the user fee charged by the Service and, in connection with such a request, to indicate whether an oral discussion is desired. This information will be used to enable the Service to determine whether the taxpayer or exempt organization is entitled to pay a reduced user fee, to ascertain whether reconsideration of the user fee is being requested and, if it is being requested, whether an oral discussion is requested. The collections of information are voluntary, to obtain a benefit. The likely respondents are individuals, business or other for-profit institutions, nonprofit institutions, and small businesses or organizations.

The estimated total annual reporting and/or recordkeeping burden is 300 hours.

The estimated annual burden per respondent/recordkeeper varies from one hour to ten hours, depending on individual circumstances, with an estimated average of three hours. The estiamted number of respondents and/or recordkeepers is 90 (requests for reduced fees) and 10 (requests for reconsideration of fee).

The estimated annual frequency of responses is on occasion.

Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally tax returns and tax return information are confidential, as required by 26 U.S.C. 6103.

DRAFTING INFORMATION

The principal author of this revenue procedure is John H. Turner of the Employee Plans Division. For further information regarding this revenue procedure, contact Mr. Turner at (202) 622-6214 (not a toll-free number).

APPENDIX

Following is a list of revenue procedures requiring payment of a user fee, an administrative scrutiny determination user fee, a voluntary compliance fee, or a voluntary correction fee.

A. PROCEDURES APPLICABLE TO BOTH EMPLOYEE PLANS AND EXEMPT ORGANIZATIONS

Rev. Proc. 97-4, this bulletin, provides procedures for issuing letter rulings, information letters, etc. relating to matters under the jurisdiction of the Assistant Commissioner (Employee Plans and Exempt Organizations).

B. PROCEDURES APPLICABLE TO EMPLOYEE PLANS MATTERS OTHER THAN ACTUARIAL MATTERS

Rev. Proc. 75-26, 1975-1 C.B. 722, sets forth the general procedures of the Department of Labor and the Internal Revenue Service for the processing of applications for exemption under section 408(a) of ERISA and section 4975(c)(2) of the Code.

Rev. Proc. 87-50, 1987-2 C.B. 647, as modified by Rev. Proc. 91-44 and Rev. Proc. 92-38, sets forth the procedures of the Service relating to the issuance of rulings and opinion letters with respect to the establishment of individual retirement accounts and annuities (IRAs) under section 408, the entitlement to exemption of related trusts or custodial accounts under section 408(e), and the acceptability of the form of prototype simplified employee pension (SEP) agreements under sections 408(k) and 415.

Rev. Proc. 89-9, 1989-1 C.B. 780, as modified by Rev. Proc. 90-21; Rev. Proc. 90-21; Rev. Proc. 92-41, 1992-1 C.B. 870; Rev. Proc. 93-9, 1993-1 C.B. 474; and Rev. Proc. 93-12; and Rev. Proc. 94-13; and as supplemented by Rev. Proc. 93-10, 1993-1 C.B. 476, sets forth the procedures of the Service pertaining to the issuance of opinion letters relating to master or prototype pension, profit-sharing and annuity plans involving sections 401 and 403(a), as amended by the Tax Reform Act of 1986 (TRA '86), the Omnibus Budget Reconciliation Act of 1986 (OBRA '86), the Omnibus Budget Reconciliation Act of 1987 (OBRA '87), and the Technical and Miscellaneous Revenue Act of 1988 (TAMRA), and the Omnibus Budget Reconciliation Act of 1993 (OBRA '93), and the status for exemption of related trusts or custodial accounts under section 501(a).

Rev. Proc. 89-13, 1989-1 C.B. 801, as modified by Rev. Proc. 90-21, Rev. Proc. 92-41, Rev. Proc. 93-9 and Rev. Proc. 93-12, and as supplemented by Rev. Proc. 93-10, sets forth the procedures of the Service for issuing notification letters relating to the qualification, as to form, of certain regional prototype defined contribution plans and defined benefit plans, and provides guidance with respect to the issuance of determination letters to employers adopting such plans as to whether the plans as adopted qualify under sections 401 and 403(a) and as to whether any related trusts or custodial accounts are exempt under section 501(a).

Rev. Proc. 90-21, 1990-1 C.B. 499, modified Rev. Proc. 89-9 and Rev. Proc. 89-13 regarding certain requirements for approval by the Service of master and prototype (M & P) pension, profit-sharing and annuity plans and regional prototype plans.

Rev. Proc. 91-44, 1991-2 C.B. 733, modified Rev. Proc. 87-50 (section 2.10) and Notice 87-62, 1987-2 C.B. 374, to permit a mass submitter or sponsoring organization to obtain an opinion letter for a prototype simplified employee pension (SEP) agreement that provides for contributions pursuant to an employee's election as described in section 408(k)(6).

Rev. Proc. 92-24, 1992-1 C.B. 739, provides procedures for requesting determination letters on the effect on a plan's qualified status under section 401(a) of the Code of plan language that permits, pursuant to section 420, the transfer of assets in a defined benefit plan to a health benefits account described in section 401(h).

Rev. Proc. 92-38, 1992-1 C.B. 859, provides notice that individual retirement arrangement trusts, custodial account agreements, and annuity contracts must be amended to provide for the required distribution rules in section 408(a)(6) or (b)(3). In addition, Rev. Proc. 92-38 modifies the guidance in Rev. Proc. 87-50 with regard to opinion letters issued to sponsoring organizations, including mass submitters and sponsors of prototype IRAs.

Rev. Proc. 93-12, as modified by Rev. Proc. 93-39, provides a simplified method for master and prototype plan sponsoring organizations or mass submitters, regional prototype plan sponsors or mass submitters, volume submitter specimen plan sponsors, and sponsors of individually designed plans which have received favorable opinion, notification, advisory, or determination letters to amend their plans to comply with section 401(a)(31) by adopting either a model amendment or a nonmodel amendment for approval by the Service.

Rev. Proc. 93-41, 1993-2 C.B. 536, sets forth the procedures of the Service relating to the issuance of an administrative scrutiny determination as to whether a separate line of business satisfies the requirement of administrative scrutiny within the meaning of section 1.414(r)-6.

Rev. Proc. 94-13, 1994-1 C.B. 566, provides guidance for certain sponsors of qualified plans and SEPs on amending their plans to reflect the modifications made by section 13212 of OBRA '93 to section 401(a)(17).

Rev. Proc. 94-62, 1994-2 C.B. 778, as modified by Rev. Proc. 96-29, 1996-16 I.R.B. 24, describes the Voluntary Compliance Resolution (VCR) program and the Standardized VCR Procedure (SVP). The VCR program permits plan sponsors (including employers, plan administrators and trustees) to correct operational plan defects that they have identified. Certain other operational defects may be corrected under the SVP, pursuant to rules set forth in the applicable sections of Rev. Proc. 94-62.

Rev. Proc. 95-24, 1995-1 C.B. 694, as modified by Rev. Proc. 96-50, 1996-47 I.R.B. 10, establishes the Tax Sheltered Annuity Voluntary Correction Program (TVC program). The TVC program permits an employer that offers a tax sheltered annuity plan under section 403(b) of the Code to voluntarily identify and correct certain defects in the plan. Employers that request consideration under the TVC program, agree to correct the identified defects, and pay the negotiated sanction, will receive written assurance that the corrections are acceptable and that the Service will not pursue revocation of the income tax exclusion with respect to the violations identified and corrected.

Rev. Proc 95-34, 1995-2 C.B. 385, provides a simplified method for amending certain plans to use the simplified method of determining highly compensated employees provided in Rev. Proc. 93-42, 199-2 C.B. 540, by adopting either model plan language or a nonmodel amendment for approval by the Service.

Rev. Proc. 97-6, this bulletin, provides procedures for issuing determination letters on the qualified status of employee plans under sections 401(a), 403(a), 409, and 4975(e)(7).

C. EMPLOYEE PLANS ACTUARIAL MATTERS:

Rev. Proc. 78-37, 1978-2 C.B. 540, sets forth the procedure by which a plan administrator or plan sponsor may obtain approval of the Secretary of the Treasury for a change in funding method as provided by section 412(c)(5) of the Code and section 302(c)(5) of ERISA.

Rev. Proc. 79-61, 1979-2 C.B. 575, outlines the procedure by which a plan administrator or plan sponsor may request and obtain approval for an extension of an amortization period in accordance with section 412(e) of the Code and section 304(a) of ERISA.

Rev. Proc. 79-62, 1979-2 C.B. 576, outlines the procedure by which a plan sponsor or administrator may request a determination that a plan amendment is reasonable and provides for only de minimis increases in plan liabilities in accordance with section 412(f)(2)(A) of the Code and section 304(b)(2)(A) of ERISA.

Rev. Proc. 90-49, 1990-2 C.B. 620, modifies and replaces Rev. Proc. 89-35, 1989-1 C.B. 917, in order to extend the effective date to contributions made for plan years beginning after December 31, 1989, to change the deadline for requesting rulings under the revenue procedure, to revise the information requirements for a ruling request made under the revenue procedure, to furnish a worksheet for actuarial computations, and to provide a special rule under which certain de minimis nondeductible employer contributions to a qualified defined benefit plan may be returned to the taxpayer without a formal ruling or disallowance from the Service.

Rev. Proc. 94-41, 1994-1 C.B. 711, sets forth procedures for requesting waivers of the minimum funding standard described in section 412(d) and the issuance of such waivers by the Assistant Commissioner (Employee Plans and Exempt Organizations).

Rev. Proc. 94-42, 1994-1 C.B. 717, supersedes Rev. Proc. 79-18, 1979-1 C.B. 525, and Rev. Rul. 79-215, 1979-2 C.B. 190, and sets forth a procedure for obtaining approval of an amendment to a qualified plan that, under section 412(c)(8), reduces the accrued benefits of plan participants.

D. PROCEDURES APPLICABLE TO EXEMPT ORGANIZATIONS MATTERS ONLY

Rev. Proc. 80-27, 1980-1 C.B. 677, provides procedures under which recognition of exemption from federal income tax under section 501(c) may be obtained on a group basis for subordinate organizations affiliated with and under the general supervision or control of a central organization. This procedure relieves each of the subordinates covered by a group exemption letter from filing its own application for recognition of exemption.

Rev. Proc. 90-27, 1990-1 C.B. 514, sets forth revised procedures with regard to applications for recognition of exemption from federal income tax under sections 501 and 521.