IRS PROVIDES RULES ON USER FEES FOR EMPLOYEE PLANS AND EXEMPT ORGANIZATIONS.

Rev. Proc. 94-8

TABLE OF CONTENTS

SECTION 1. PURPOSE

This revenue procedure provides up-to-date guidance, including a revised fee schedule, 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), for complying with the voluntary compliance fee requirements of Revenue Procedure 92-89, 1992-2 C.B. 498, and Rev. Proc. 93-36, 1993-29 I.R.B. 73, and for complying with the administrative scrutiny user fee requirements of Rev. Proc. 93-41, 1993-31 I.R.B. 28. The entire user fee program, with the schedule of fees applicable to requests for letter rulings, etc. on matters under the Chief Counsel's jurisdiction as well as the fees applicable to requests for letter rulings, determination letters, etc. on matters under the jurisdiction of the Assistant Commissioner (Employee Plans and Exempt Organizations), was previously set forth in a single revenue procedure, Rev. Proc. 93-23, 1993-1 C.B. 538. The user fee program as it pertains to requests for letter rulings, etc. on matters under the Chief Counsel's jurisdiction is now set forth separately in Rev. Proc. 94-1, page 10, this Bulletin.

SEC. 2. BACKGROUND

01. LEGISLATION. Section 10511 of the Revenue Act of 1987 (Title X of the Omnibus Budget Reconciliation Act of 1987), Public Law 100-203, enacted December 22, 1987, was amended by section 11319 of the Omnibus Budget Reconciliation Act of 1990, Pub. L. 101-508, enacted November 5, 1990. (The two laws will be referred to together in this revenue procedure as the "Act.") The Act provides that the Secretary of the Treasury or his delegate ("Secretary") shall establish a program requiring the payment of user fees for requests to the Service for rulings, opinion letters, determination letters, and similar requests, and that such fees shall apply with respect to requests made on or after February 1, 1988 and before October 1, 1995. The fees charged under the program are to vary according to categories (or sub-categories) established by the Secretary; they are to be determined after taking into account the average time for, and difficulty of, complying with requests in each category and sub- category; and they are to be payable in advance. The Secretary is to provide for such exemptions and reduced fees under the program as the Secretary determines to be appropriate, but the average fee applicable to each category must not be less than the amount specified in the Act.

02. RELATED REVENUE PROCEDURES. A list of revenue procedures relating to requests for letter rulings, opinion letters, etc. on matters under the jurisdiction of the Assistant Commissioner (Employee Plans and Exempt Organizations) that require payment of a user fee, and to requests under the Voluntary Compliance Resolution Program and the Standardized VCR Procedure, and to requests for administrative scrutiny determinations under Rev. Proc. 93-41, is set forth in the appendix to this revenue procedure.

SEC. 3. CHANGES

01. FEE SCHEDULE. The revised fee schedule reflects modifications provided for in revenue procedures published after Rev. Proc. 93-23, and also reflects the voluntary compliance fee under the new Standardized VCR Procedure.

02. MODIFICATIONS TO REV. PROC. 93-23.

(1) Rev. Proc. 93-39, 1993-31 I.R.B. 7, contains procedures of the Service pertaining to the issuance of determination letters on the qualified status of pension, profit-sharing, and annuity plans under sections 401(a) and 403(a) of the Internal Revenue Code as amended by Public Laws 99-509, 99-514, 100-203, 100-647, 101-239, 102-318 and 103-66 (collectively referred as "TRA"). It modified section 6.09 of Rev. Proc. 93-23 by providing for a new graduated user fee schedule for applications filed for a determination letter.

(2) Rev. Proc. 93-41, 1993-31 I.R.B. 28, 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 of the Income Tax Regulations. It modified Rev. Proc. 93-23 by adding new user fees that depend on the number of separate lines of business for which administrative scrutiny determinations are requested.

03. STANDARDIZED VCR PROCEDURE. Rev. Proc. 93-36, 1993-29 I.R.B. 73, expands the types of defects that can be corrected under the Voluntary Compliance Resolution Program described in Rev. Proc. 92- 89, 1992-2 C.B. 498, gives additional guidance concerning the specificity of VCR compliance statement requests, provides a standardized correction procedure for certain defects, and extends the last day of the VCR Program. If a plan sponsor uses the Standardized VCR Procedure (SVP), a voluntary compliance fee of $350 is applicable, regardless of the number of participants in the plan.

SEC. 4. SCOPE

01. Except as provided in section 4.02 below, 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 organizations or other entities as described in this revenue procedure. Voluntary compliance fees applicable to requests under the Voluntary Compliance Resolution Program described in Rev. Proc. 92-89, 1992-2 C.B. 498, or the Standardized Voluntary Compliance Procedure described in Rev. Proc. 93-36, 1993-29 I.R.B. 73, and administrative scrutiny determination user fees described in Rev. Proc. 93-41, 1993-31 I.R.B. 28, are collected through the user fee program. Requests to which a user fee, a voluntary compliance 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 as set forth in section 7.10 below.

02. User fees do not apply to:

(1) Submissions with respect to the model amendment described in section 6 of Rev. Proc. 93-12, 1993-1 C.B. 479.

(2) Elections made pursuant to section 4 of Rev. Proc. 92-85, 1992-2 C.B. 490, pertaining to automatic extensions of time under section 301.9100-1 of the Procedure and Administration Regulations.

(3) Form 5305, Individual Retirement Trust Account. This model trust form may be used by an individual who wishes to adopt an individual retirement account under section 408(a) of the Code. It should not be filed with the Internal Revenue Service.

(4) Form 5305-A, Individual Retirement Custodial Account. This model custodial account form may be used by an individual who wishes to adopt an individual retirement account under section 408(a) of the Code. It should not be filed with the Internal Revenue Service.

(5) Requests for information letters.

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

SEC. 5. DEFINITIONS

The following terms as used in this revenue procedure have the same meaning as they have in the pertinent revenue procedure referred to below and described in the appendix:

basic plan document Rev. Procs. 89-9,

The amount of the user fee payable with respect to each category or subcategory of submission is as set forth in the following schedule. It should be noted that the schedule does not apply to any request involving any issue within the jurisdiction of the Associate Chief Counsel (Employee Benefits and Exempt Organizations).

                EMPLOYEE PLANS CATEGORY                             FEE

(3) Sponsoring organization's minor modification of mass submitter's prototype IRA or SEP, per plan document ($400)

(4) Nonmass submission (new or amended) by sponsoring organization, per plan document (Form 5306 or Form 5306-SEP) ($500)

(5) Amendment of an approved SEP or SARSEP by a mass submitter, an identical adopter, or other sponsoring organization solely by the adoption of the Model Amendment reproduced in the Appendix to Rev. Proc. 91-44, per plan document ($100)

07. Voluntary Compliance Fee.

(1) Request for a compliance statement under the Voluntary Compliance Resolution Program (Rev. Proc. 92-89):

(a) Plan sponsor with plan assets of less than $500,000 and no more than 1,000 plan participants ($500)

(b) Plan sponsor with plan assets of at least $500,000 and no more than 1,000 plan participants ($1,250)

(c) Plan sponsor with more than 1,000 plan participants but less than 10,000 plan participants ($5,000)

(d) Plan sponsor with 10,000 or more plan participants ($10,000)

(2) Request for a VCR compliance statement under the Standardized VCR Procedure (Rev. Proc. 93-36) ($350)

08. Employee Plant Determination Letters.

(1) If the plan is intended to satisfy a design-based or nondesign-based safe harbor, or if the applicant is NOT electing to receive a determination with respect to any of the general tests, and the applicant is not electing to receive a determination with respect to the average benefit test:

(a) Form 5300 ($700)

(b) Form 5303 ($700)

(c) Form 5310 ($225)

(d) Form 5307 ($125)

(e) Form 6406 ($125)

(f) Multiple employer plan:

(i) 2 to 10 employers ($700)

(ii) 11 to 99 employers ($1,400)

(iii) 100 to 499 employers ($2,800)

(iv) Over 499 employers ($5,600)

NOTE: In the case of a multiple employer plan, if any of the participating employers uses the average benefit/general test, the fees set forth in paragraph (2) below would apply to the initial submission. For each employer adopting the plan after the initial submission the fee would depend on whether the adopting employer uses the average benefit/general test: If the employer does not use that test, the fee would be $700; if the employer uses the test, the fee would be $1,250.

(2) If the applicant is electing to receive a determination with respect to the average benefit test and/or any of the general tests:

(a) Form 5300 or Form 5303 ($1,250)

(b) Form 5307 ($1,000)

(c) Form 5310 ($375)

(d) Multiple employer plan:

(i) 2 to 10 employers ($1,250)

(ii) 11 to 99 employers ($2,000)

(iii) 100 to 499 employers ($3,500)

(iv) Over 499 employers ($6,500)

(3) Group trusts contemplated by Rev. Rul. 81-100, 1981-1 C.B. 326 ($750)

(4) Adoption of nonmodel amendment by employer maintaining an individually designed plan, pursuant to the limited amendment procedure described in Rev. Proc. 93-12, 1993-1 C.B. 479, to comply with section 401(a)(31) of the Code (Form 6406) ($125)

(5) Adoption of nonmodel amendment by employer who has previously adopted a volume submitter's specimen plan and wishes to utilize the version of the specimen plan that includes a nonmodel amendment, pursuant to the limited amendment procedure described in Rev. Proc. 93-12, 1993-1 C.B. 479, to comply with section 401(a)(31) of the Code (Form 5307) ($125)

09. Advisory Letters on Volume Submitter Plans.

(1) Volume submitter specimen plans ($1,500)

NOTE: A practitioner that has received approval of a volume submitter specimen plan in a key district office must receive separate approval of the plan from each other key district office in which there are clients adopting substantially similar plans. If the practitioner certifies at the time of filing with the second key district office that the specimen plan is identical to a specimen plan approved by another key district office with respect to that practitioner and attaches a copy of that office's advisory letter, then the user fee that would otherwise be charged for the specimen plan will not be charged.

(2) Adoption of nonmodel amendment by sponsor of volume submitter specimen plan pursuant to the limited amendment procedure described in Rev. Proc. 93-12, 1993-1 C.B. 479, to comply with section 401(a)(31) of the Code ($400)

10. Notification Letters issued by Key District Office with respect to Regional Prototype Plans.

(1) Sponsor's identical adoption of mass submitter's regional prototype plan basic plan document, per adoption agreement (mass submitters that are sponsors in their own right are liable for this fee) (Form 4461-B) ($100)

(2) Nonmass submission by sponsor of regional prototype plan, per adoption agreement (Form 4461 or 4461-A) ($1,500)

(3) Sponsor's adoption of nonmodel amendment pursuant to the limited amendment procedure described in Rev. Proc. 93-12, 1993-1 C.B. 479, to comply with section 401(a)(31) of the Code (Form 4461 or 4461-A) ($400)

EXEMPT ORGANIZATIONS CATEGORY

11. Exempt Organizations Letter Rulings.

Except for reduced fees as provided in "all other letter rulings" in paragraph (6) below and exemptions provided in section 7.11, applications with respect to:

(1) Change in accounting period (Form 1128) ($150)

NOTE: No user fee is charged if the procedure described in Rev. Proc. 85-58, 1985-2 C.B. 740, is used by timely filing the appropriate information return, or if the procedure described in Rev. Proc. 76-10, 1976-1 C.B. 548, for organizations with group exemptions is followed.

(2) Change in accounting method (Form 3115) ($200)

NOTE: No user fee is charged if the method described in Rev. Proc. 92-74, 1992-2 C.B. 442, or that described in Rev. Proc. 92-75, 1992-2 C.B. 448, is used. Taxpayers complying timely with whichever of those revenue procedures is applicable will be deemed to have obtained the consent of the Commissioner of Internal Revenue to change their method of accounting.

(3) Advance approval of scholarship grant-making procedures of a private foundation that has an agreement for the administration of the scholarship program with the National Merit Scholarship Corp., or similar organization administering a scholarship program shown to meet Service requirements ($100)

(4) Request for a letter ruling as to whether an organization exempt from federal income tax is required to file an annual return under section 6033 of the Code ($100)

(5) Request for a confirmation letter ruling dealing with private benefit/inurement issues on the tax-exempt status of the organization arising from proposed tax-exempt bond financing ($100)

(6) All other letter rulings ($1,775)

Reduced Fees:

(a) Organizations with gross receipts less than $150,000 ($500)

NOTE: An exempt organization seeking a reduced fee must certify in the letter ruling request that its gross receipts for the last taxable year before the request is filed were less than $150,000.

(b) Letter ruling requests from U.S. citizens and resident alien individuals, domestic trusts, and domestic estates whose total "income" as reported on their federal income tax return (as amended) filed for a full (12 months) taxable year ending before the date the request is filed, plus any interest income not subject to tax under section 103 (interest on state and local bonds) for that period, is less than $150,000 ($500)

NOTE: In the case of a letter ruling request from a domestic estate or trust that, at the time the request is filed, has not filed an income tax return for a full taxable year, the reduced fee will be applicable if the decedent's or (in the case of an individual grantor) the grantor's total income as reported on the last return filed for a full taxable year ending before the date of death or the date of the transfer, taking into account any additions required to he made to total income described in this subparagraph, is less than $150,000.

(c) Letter ruling requests in which a taxpayer requests substantially identical letter rulings for multiple entities with a common member or activity, or multiple members of a common entity, for each additional letter ruling request after the $1,775 fee has been paid for the first letter ruling request ($200)

12. Exempt Organizations Determination Letters and Requests for Group Exemption Letters.

(1) Initial application for exemption under section 501 or section 521 from organizations (other than pension, profit-sharing, and stock bonus plans described in section 401) that have had annual gross receipts averaging not more than $10,000 during the preceding four years, or new organizations that anticipate gross receipts averaging not more than $10,000 during their first four years ($150)

NOTE: Organizations seeking this reduced fee must sign a certification with their application that the receipts are or will be not more than the indicated amounts.

(2) Initial application for exempt status from organizations otherwise described in paragraph (1) above whose actual or anticipated gross receipts exceed the $10,000 average annually ($465)

NOTE: If an organization that is already recognized as exempt under section 501(c) of the Code seeks reclassification under another subparagraph of section 501(c), a new user fee will be charged whether or not a new application is required. An additional fee applies to organizations that seek recognition of exemption under section 501(c)(4) (unless requested at the time of the section 501(c)(3) application) for a period for which they do not qualify for exemption under section 501(c)(3) because their application was filed late and they do not qualify for relief under section 301.9100-1 of the Procedure and Administration Regulations.

(3) Group exemption letters ($500)

SEC. 7. PROCEDURAL MATTERS

01. Submissions Involving Several Offices. If a request dealing with only one transaction involves more than one of the offices within the National Office of the Service (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.

02. Submissions Involving Several 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. Submissions Involving Several Issues. If a request dealing with only one transaction involves several issues, 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. Submissions Involving Several Unrelated Transactions. A separate fee will apply with respect to each unrelated transaction where a request involves several unrelated transactions or the request is changed by the addition of an unrelated transaction not contained in the initial submission.

05. Submissions Involving 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. However, see section 6.11(6)(c) above, where a reduced fee is provided for in situations in which a taxpayer requests substantially identical letter rulings for multiple entities with a common member or activity, or multiple members of a common entity.

06. Method of Payment. Each request to the Service for a letter ruling, determination letter, opinion letter, must be accompanied by a check or money order, payable to the Internal Revenue Service, in the appropriate amount. Requesters should not send cash.

07. Mailing Address for Requesting Letter Rulings, Determination Letter, etc.

(1) Requests should be sent to the appropriate address set forth below. Requests may be 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.

(a) Employee Plants Letter Rulings under Rev. Proc. 78-37, 79- 18, 79-61, 79-62, 83-41, 87-50, 90-49 or 94-4:

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                     EMPLOYEE PLANS APPLICATIONS

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

(1) Except in the case of requests for determination letters or opinion letters as to the qualification of employee plans (see paragraph (2) below), 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) If a request for a determination letter or opinion letter as to the qualification of an employee plan is not accompanied by a properly completed check or money order (for example, a check has not been signed), or if the request is accompanied by a check or money order for less than the correct amount, the entire submission will be returned to the requester, along with the check or money order.

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

(4) 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) of the Code 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) of the Income Tax Regulations 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) of the regulations or within 30 days, whichever is later.

(5) 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.

10. REFUNDS. In general, the fee will not be refunded unless the Service declines to rule on all issues for which a ruling is requested.

(1) THE FOLLOWING 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 or an overpayment and is not timely perfected by the requester. Where 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 requester asserts that a letter ruling the requester received covering a single issue is erroneous or not responsive (other than with respect to any 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 not responsive. The fee accompanying the request for reconsideration will not be refunded.

(f) The situation is the same as described in subparagraph (e) immediately above except that the letter ruling covered several unrelated transactions. The Service, upon reconsideration, does not agree with the requester that the letter ruling is erroneous or not responsive with respect to all of the transactions, but does agree that it is erroneous with respect to one transaction. The fee accompanying the request for reconsideration will not be refunded except to the extent applicable to the transaction with respect to 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 requester submits arguments and authorities not submitted before the original letter ruling or determination letter was issued.

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

(a) In a situation to which section 7.10(1)(h) above does not apply, the requester asserts that a letter ruling the requester received covering a single issue is erroneous or not responsive (other than with respect to any issue on which the Service declined to rule) and requests reconsideration. The Service agrees, upon reconsideration, that the letter ruling is erroneous or not responsive. The fee accompanying the requester's request for reconsideration will be refunded.

(b) In a situation to which section 7.10(1)(h) above 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 requester requests and is granted relief under section 7805(b) of the Code 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.

11. EXEMPTIONS. The user fee requirement of this revenue procedure shall not apply to:

(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 shall have no bearing on whether an applicant is treated as an agency or instrumentality of the United States for purposes of any provision of the Internal Revenue Code.

(2) Requests 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 an employer-employee relationship exists. See section 5.11 of Rev. Proc. 94-6. 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.

(3) Requests for an opinion letter or a notification letter with respect to an amendment of a previously approved master or prototype plan or a previously approved regional prototype plan, where the plan is being amended only to the extent necessary to meet the requirements of section 3 of Rev. Proc. 93-10, 1993-1 C.B. 476 (relating to nonstandardized safe harbor plans).

SEC. 8. QUESTIONS AS TO APPLICABILITY OR AMOUNT OF FEE

A requester 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 Refunds in section 7.10 above) 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 section 7.07 above. Both the incoming envelope and the letter requesting such reconsideration should be prominently marked "USER FEE RECONSIDERATION REQUEST." No user fee is required for such requests. The request should be marked for the attention of:

If the matter involves primarily: Mark for the attention of:

01. Rev. Proc. 93-23 is superseded in part by this revenue procedure. Rev. Proc. 94-1, page 10, this Bulletin, supersedes the remaining part. Therefore, Rev. Proc. 93-23 is superseded in its entirety.

02. The following revenue procedures, cited in the appendix, are modified by substituting for the references to Rev. Proc. 93-23 that they contain (as the result of their modification by Rev. Proc. 93-23) corresponding references to this revenue procedure: Rev. Procs. 90-21, 90-27, 90-49, 91-22, 91-44, 92-20, 92-38, 92-60, 92-89, 93-1, 93-4, 93-6, and 93-12.

03. The following revenue procedures, cited in the appendix, are amplified to the extent that this revenue procedure provides for an additional requirement that must be satisfied in requesting a letter ruling, opinion letter, etc.: Rev. Procs. 75-26, 78-37, 79-18, 79-61, 79-62, 80-27, 83-41, and 87-50.

SEC. 10. EFFECTIVE DATE

This revenue procedure is effective January 3, 1994.

DRAFTING INFORMATION

The principal author of this revenue procedure is John H. Turner of the Employee Plans Technical and Actuarial 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 relating to requests for letter rulings, determination letters, etc. that require payment of a user fee, or to requests under the Voluntary Compliance Resolution Program or the Standardized VCR Procedure:

A. PROCEDURES APPLICABLE TO BOTH EMPLOYEE PLANS AND EXEMPT ORGANIZATIONS:

Rev. Proc. 94-4, page 90, this Bulletin, provides procedures for issuing letter rulings, information letters, etc. on matters relating to sections of the Code 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 the Employee Retirement Income Security Act of 1974 (ERISA) and section 4975(c)(2) of the Internal Revenue Code.

Rev. Proc. 87-50, 1987-2 C.B. 647, as modified by Rev. Proc. 91- 44, 1991-2 C.B. 733, and by Rev. Proc. 92-38, 1992-1 C.B. 859, 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 of the Code, 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, 1990-1 C.B. 499; Rev. Proc. 91-66, 1991-2 C.B. 870 (sections 8.03-8.08); Rev. Proc. 92-41, 1992-1 C.B. 870; Rev. Proc. 93-9, 1993- 1 C.B. 474; and Rev. Proc. 93-12, 1993-1 C.B. 479; 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) of the Code, 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 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. 91-66 (sections 8.03-8.08), Rev. Proc. 92-41, Rev. Proc. 93-9, 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) of the Code and as to whether any related trusts or custodial accounts are exempt under section 501(a).

Rev. Proc. 90-21 modified Rev. Procs. 89-9 and 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) of the Code. The revenue procedure provides a Model Amendment that a sponsor may use verbatim to add elective deferral provisions to an existing prototype SEP and also provides two other formats for sponsors to use to add elective deferral provisions to existing prototype SEPs or to use with new prototype SEPs that provide for elective deferrals.

Rev. Proc. 91-66, 1991-2 C.B. 870. which was modified by Rev. Proc. 92-60, Rev. Proc. 93-6 and Rev. Proc. 93-10, set forth temporary procedures relating to the issuance of determination letters on the qualified status of pension, profit-sharing, and annuity plans under sections 401 and 403(a) of the Code, as amended by the Tax Reform Act of 1986, the Omnibus Budget Reconciliation Act of 1986, the Omnibus Budget Reconciliation Act of 1987, the Technical and Miscellaneous Revenue Act of 1988, and the Omnibus Budget Reconciliation Act of 1989. Rev. Proc. 91-66 has been superseded by Rev. Proc. 93-39, with the exception of sections 8.03-8.08, relating to M & P and regional prototype plans.

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 of the Code, 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) of the Code. 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. 92-89, 1992-2 C.B. 498 established the Voluntary Compliance Resolution Program, a temporary, experimental program which, in general, permits employers to voluntarily correct operational defects in their retirement plans and obtain a compliance statement which provides that the corrections are acceptable and that the Service will not pursue plan disqualification with respect to the operational violations identified in the statement. The program only applies for plans that received a determination letter under the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), the Tax Reform Act of 1984 (DEFRA), and the Retirement Equity Act of 1984 (REA).

Rev. Proc. 93-12, 1993-1 C.B. 479, 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) of the Code by adopting either a model amendment or a nonmodel amendment for approval by the Service.

Rev. Proc. 93-36, 1993-29 I.R.B. 73, expands the types of defects that can be corrected under the Voluntary Compliance Resolution Program described in Rev. Proc. 92-89, gives additional guidance concerning the specificity of VCR compliance statement requests, provides a standardized correction procedure (Standardized VCR Procedure (SVP)) for certain defects, and extends the last day of the VCR Program. If a plan sponsor uses the Standardized VCR Procedure (SVP), a voluntary compliance fee of $350 is applicable, regardless of the number of participants in the plan.

Rev. Proc. 93-39, 1993-31 I.R.B. 7, contains procedures of the Service pertaining to the issuance of determination letters on the qualified status of pension, profit-sharing, and annuity plans under sections 401(a) and 403(a) of the Internal Revenue Code as amended by Public Laws 99-509, 99 514, 100-203, 100-647, 101-239, 102-318 and 103-66. It modifies section 6.09 of Rev. Proc. 93-23 by providing for a new graduated user fee schedule for applications filed for a determination letter.

Rev. Proc. 93-41, 1993-31 I.R.B. 28, 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 of the Income Tax Regulations. It modifies Rev. Proc. 93-23 by adding new user fees that depend on the number of separate lines of business for which administrative scrutiny determinations are requested.

Rev. Proc. 94-6, page 142, 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) of the Code.

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 the Employee Retirement Income Security Act of 1974 (ERISA).

Rev. Proc. 79-18, 1979-1 C.B. 525, outlines the procedure by which a plan administrator or plan sponsor may file notice with and obtain approval from the Secretary of the Treasury for a retroactive plan amendment described in section 412(c)(8) of the Code and section 302(c)(8) 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. 83-41, 1983-1 C.B. 775, as modified by Rev. Proc. 88- 5, 1988-1 C.B. 587, and Rev. Proc. 88-29, 1988-1 C.B. 828, outlines the procedures of the Service with respect to applications for waivers of the minimum funding standard under either section 412(d) of the Code or section 303 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.

D. PROCEDURES APPLICABLE TO EXEMPT ORGANIZATIONS MAILERS ONLY:

Rev. Proc. 80-27, 1980-1 C.B. 677, provides procedures under which re-cognition of exemption from federal income tax under section 501(c) of the Internal Revenue Code 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 of the Code.