Rev. Proc. 70-9

Section 1. Purpose.

The purpose of this Revenue Procedure is to prescribe application forms that are to be submitted by employers requesting determination letters as to qualification of certain pension, annuity, profit-sharing, stock bonus and bond purchase plans under section 401 or section 405(a) of the Internal Revenue Code of 1954 and as to the exempt status of related trusts (or custodial accounts) under section 501(a) of the Code.

Sec. 2. Background and General Information.

.01 Section 601.201(c) of the Statement of Procedural Rules ( Revenue Procedure 69-1, C.B. 1969-1, 381), authorizes District Directors of Internal Revenue to issue determination letters as to the qualification of plans under section 401 of the Code and the exempt status of related trusts under section 501.

.02 Section 601.201(p) of the Statement of Procedural Rules ( Revenue Procedure 69-30, C.B. 1969-2, 312) outlines procedures for the issuance of determination and opinion letters relating to master or prototype plans and trusts that include self-employed individuals and prescribes the use of application Form 3672. It provides in the case of a plan that includes self-employed individuals, but does not utilize a master or prototype plan or trust, that the general procedures of section 601.201 of the Statement of Procedural Rules will apply. It also provides for the use of Form 4578 in the case of a bond purchase plan that includes a self-employed individual.

.03 Section 601.201(q) of the Statement of Procedural Rules ( Revenue Procedure 68-45, C.B. 1968-2, 957) outlines procedures for the issuance of rulings, determination letters, and opinion letters relating to master and prototype pension, annuity, and profit-sharing plans and trusts, except those covering self-employed individuals, and prescribes the use of application Forms 4461 and 4462.

.04 Section 601.201(o) of the Statement of Procedural Rules ( Revenue Procedure 69-4, C.B. 1969-1, 391) sets forth the general procedures for the issuance of determination letters with respect to certain plans intended to qualify under sections 401 and 405(a) of the Code and the exempt status of related trusts under section 501(a). Section 4 of that Revenue Procedure provides instructions to taxpayers regarding the information required to be filed with requests for determination letters but does not prescribe any particular form for submitting the information.

Sec. 3. Application Forms Prescribed.

.01 A favorable determination letter on the qualification of a pension, annuity, profit-sharing, stock bonus, or bond purchase plan, and on the exempt status of a related trust, if any, is not required as a condition for obtaining the benefits pertaining to the plan or trust. However, upon request of an employer adopting a plan, the appropriate District Director will issue a determination letter as to the qualification of the plan and the exempt status of any related trust. A request for a determination letter (other than on a plan utilizing a master or prototype plan, for which application forms were heretofore prescribed) should be made, as appropriate, on one of the application forms identified in section 3.02 below.

.02 The application forms are identified as follows:

Form 4573, Application for Determination--Individually Designed Plan (not covering self-employed individuals);

Form 4574, Application for Determination--Individually Designed Plan Covering Self-Employed Individuals;

Form 4575, Application for Determination--Investment of Trust Funds in Stocks or Securities of Employer;

Form 4576, Application for Determination--Termination or Curtailment of Plan; and

Form 4577, Application for Determination--Industry-Wide Plan and Trust.

Sec. 4. Instructions to Taxpayers.

Section 4 of Revenue Procedure 69-4 is restated in its entirety to read as follows:

Sec. 4. Instructions to Taxpayers.

.01 All of the provisions of section 6 of Revenue Procedure 69-1 are applicable to requests for determination letters of the type discussed in this Revenue Procedure. In addition, an employer requesting a determination letter should file with the appropriate District Director specified in section 4.07 below the application form required by section 4.02 through 4.06. The filing of such application, when accompanied by copies of all documents, including the plan and trust or custodial agreement and specimen insurance contracts, if applicable, will generally serve to provide the Service with the information required by section 1.404(a)-2 of the Income Tax Regulation. However, in making the determination, the Service may require the submission of additional information as appropriate.

.02 If the request relates to the initial qualification of an individually designed plan, a subsequent amendment thereto, or compliance with the requirements for a foreign situs trust, the employer should (1) if the plan does not include self-employed individuals, file Form 4573, or (2) if the plan includes self-employed individuals, file Form 4574, except that where a bond purchase plan includes a self-employed individual, file Form 4578, Application for Approval of Bond Purchase Plan.

.03 If the request involves an investment of trust funds in the stock or securities of the employer, the employer or trustee should file Form 4575.

.04 If the request involves a curtailment or termination of the plan (or complete discontinuance of contributions), the employer should file Form 4576. This form will also be applicable to the termination of a plan that includes self-employed individuals.

.05 An association of employers or a board of trustees should file Form 4577, if the request relates to the initial qualification or subsequent amendment of an industry-wide or area-wide union-negotiated plan.

.06 When, in connection with an application for a determination on the qualification of the plan, it is necessary to determine whether an organization (including a professional service organization) is a corporation or an association classified as a corporation under section 301.7701-2 of the Regulations on Procedure and Administration, and whether an employer-employee relationship exists between it and its associates, the District Director will make such determination. In such cases, the application with respect to the qualification of the plan should be filed in accordance with the provisions herein set forth and should contain the information and documents specified in the application. It should also be accompanied by such information and copies of documents as the organization deems appropriate to establish its status. The Service may, in addition, require any further information that is considered necessary to determine the status of the organization, the employment status of the individuals involved, or the qualification of the plan. After the taxable status of the organization and the employer-employee relationship have been determined, the District Director may issue a determination letter as to the qualification of the plan.

.07 Requests for determination letters on matters authorized by section 3.01, and the necessary supporting data, are to be addressed to the District Director specified below:

1 A single employer will address his request to the District Director for the district in which his principal place of business is located.

2 If a parent company and its subsidiaries have a single plan, the request will be addressed to the District Director for the district in which the principal place of business of the parent company is located, whether separate or consolidated returns are filed.

3 If the plan is established or proposed for an industry by all subscribing employers whose principal places of business are located within the jurisdiction of more than one District Director, the request will be addressed to the District Director for the district in which is located the principal place of business of the trustee, or if more than one trustee, the usual meeting place of the trustees.

4 In the case of a pooled fund arrangement (individual trusts under separate plans pooling their funds for investment purposes through a master trust), the request on behalf of the master trust will be addressed to the District Director for the district where the principal place of business of such trust is located. Requests on behalf of the participating trusts and related plans will be addressed as otherwise provided herein.

5 In the case of a plan of multiple employers (other than a master or prototype plan) not otherwise herein provided for, the request will be addressed to the District Director for the district in which is located the principal place of business of the trustee, or if not trusteed or if more than one trustee, the principal or usual meeting place of the trustees or plan supervisors.

6 If the plan is for an organization of the type described in section 4.06 above, the organization will address its request to the District Director with whom it is required to file its tax returns.

Sec. 5. Effect On Other Documents.

Revenue Procedure 69-4 is modified to prescribe application forms that should be submitted to request determination letters as to qualification of certain plans and exempt status of related trusts (or custodial accounts) under sections 401, 405(a), and 501(a) of the Code.

Sec. 6. Effective Date.

This Revenue Procedure is effective April 13, 1970, the date of its publication in the Internal Revenue Bulletin.