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Rules Updated On User Fees For Employee Plans And Exempt Organizations.

JAN. 2, 2001

Rev. Proc. 2001-8; 2001-1 C.B. 239

DATED JAN. 2, 2001
DOCUMENT ATTRIBUTES
Citations: Rev. Proc. 2001-8; 2001-1 C.B. 239

Modified by Rev. Proc. 2001-17 Superseded by Rev. Proc. 2002-8

Rev. Proc. 2001-8

                          TABLE OF CONTENTS

 

 

SECTION 1. PURPOSE

 

 

SECTION 2. CHANGES

 

 

     01. In general

 

     02. New mailing addresses

 

     03. New categories

 

     04. Compliance and correction fees

 

     05. Fee schedule

 

 

SECTION 3. BACKGROUND

 

 

     .01 Legislation authorizing user fees

 

     .02 Related revenue procedures

 

 

SECTION 4. SCOPE

 

 

     .01 Requests to which user fees apply

 

     .02 Requests and other actions that do not require the payment of

 

         a user fee

 

     .03 Exemptions from the user fee requirements

 

 

SECTION 5. DEFINITIONS

 

 

SECTION 6. FEE SCHEDULE

 

 

     EMPLOYEE PLANS USER FEES

 

 

     .01 Letter ruling requests

 

     .02 Requests for certain administrative exemptions

 

     .03 Administrative scrutiny determinations with respect to

 

         separate lines of business

 

     .04 Opinion letters and advisory letters on master and prototype

 

         plans

 

     .05 Opinion letters on prototype individual retirement accounts

 

         and/or annuities, simplified employee pensions, SIMPLE IRAs,

 

         SIMPLE IRA Plans, Roth IRAs and dual-purpose IRAs

 

     .06 Determination letters

 

     .07 Advisory letters on volume submitter plans

 

 

     EXEMPT ORGANIZATIONS USER FEES

 

 

     .08 Letter rulings

 

     .09 Determination letters and requests for group exemption

 

         letters

 

     .10 Summary of Exempt Organization fees

 

 

SECTION 7. MAILING ADDRESS FOR REQUESTING LETTER RULINGS,

 

     DETERMINATION LETTERS, ETC.

 

 

     .01 Matters handled by EP or EO Technical

 

     .02 Matters handled by EP or EO Determinations

 

 

SECTION 8. REQUESTS INVOLVING MULTIPLE OFFICES, FEE CATEGORIES,

 

     ISSUES, TRANSACTIONS, OR ENTITIES

 

 

     .01 Requests involving several offices

 

     .02 Requests involving several fee categories

 

     .03 Requests involving several issues

 

     .04 Requests involving several unrelated transactions

 

     .05 Requests for separate letter rulings for several entities

 

 

SECTION 9. PAYMENT OF FEE

 

 

     .01 Method of payment

 

     .02 Transmittal forms

 

     .03 Effect of nonpayment or payment of incorrect amount

 

 

SECTION 10. REFUNDS

 

 

     .01 General rule

 

     .02 Examples

 

 

SECTION 11. REQUEST FOR RECONSIDERATION OF USER FEE

 

 

SECTION 12. EFFECT ON OTHER DOCUMENTS

 

 

SECTION 13. EFFECTIVE DATE

 

 

SECTION 14. PAPERWORK REDUCTION ACT

 

 

APPENDIX

 

 

SECTION 1. PURPOSE

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 Commissioner, Tax Exempt and Government Entities Division; and requests for administrative scrutiny determinations under Rev. Proc. 93-41, 1993-2 C.B. 536.

SECTION 2. CHANGES

.01 IN GENERAL. This revenue procedure is a general update of Rev. Proc. 2000-8, 2000-1 I.R.B. 230.

.02 NEW MAILING ADDRESSES. Section 7 has been updated to reflect new mailing addresses.

.03 NEW CATEGORIES. Section 17.02 of Rev. Proc. 2000-20, 2000-6 I.R.B. 553, modified section 6.07 of Rev. Proc. 2000-8 with respect to the user fees for advisory letters for certain volume submitter plans. This revenue procedure incorporates these changes.

.04 COMPLIANCE AND CORRECTION FEES. Compliance and compliance correction fees under the Voluntary Compliance Resolution (VCR) Program, the Standardized VCR Procedure (SVP), Walk-in CAP, and the Tax-Sheltered Annuity Voluntary Correction (TVC) Program are not described in this procedure because they are compliance fees or correction fees and not user fees. For further guidance, please see Rev. Proc. 2000-16, 2000-6 I.R.B. 518.

.05 FEE SCHEDULE. A note has been added to section 6.09(3) to clarify that a separate user fee is required when a central organization submits an initial application for exemption with its request for a group exemption letter.

SECTION 3. BACKGROUND

.01 LEGISLATION AUTHORIZING USER FEES. Section 10511 of the Revenue Act of 1987, Pub. 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, 1996-3 C.B. 1, 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, 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, determination letters, and advisory letters submitted by or on behalf of taxpayers, sponsoring organizations or other entities as described in this revenue procedure. Further, 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 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 not require the payment of a user fee include the following:

(1) Requests for information letters as defined in Rev. Proc. 2001-4, page 121, this Bulletin.

(2) Elections pertaining to automatic extensions of time under section 301.9100-1 of the Procedure and Administration regulations.

(3) Use of forms which are not to be filed with the Service. For example, no user fee is required in connection with the use of Form 5305, Individual Retirement Trust Account, or Form 5305-A, Individual Retirement Custodial Account, in order to adopt an individual retirement account under section 408(a). This form should not be filed with the Service.

(4) 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, advisory, ruling or determination letters for plans that are amended solely to add the model language.

(5) Change in accounting period or accounting method permitted by a published revenue procedure that permits an automatic change without prior approval of the Commissioner.

.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 an applicant is treated as an agency or instrumentality of the United States for purposes of any provision of the Code.

(2) Requests as to whether a worker is an 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 an employer-employee relationship exists. See section 6.13 of Rev. Proc. 2001-6, page 194, 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 following terms used in this revenue procedure are defined in the pertinent revenue procedures referred to below, which are described in the appendix:

 Administrative scrutiny

 

   determination                    Rev. Proc. 93-41

 

 Adoption agreement                 Rev. Proc. 2000-20

 

 Advisory letter                    Rev. Procs. 2000-20, 2001-6

 

 Basic plan document                Rev. Proc. 2000-20

 

 Determination letter               Rev. Procs. 90-27, 2001-4

 

 Dual-purpose IRA                   Rev. Proc. 98-59

 

 Group exemption letter             Rev. Proc. 80-27

 

 Information letter                 Rev. Proc. 2001-4

 

 Letter ruling                      Rev. Proc. 2001-4

 

 Mass submitter                     Rev. Procs. 87-50, 2000-20

 

 Mass submitter plan                Rev. Proc. 2000-20

 

 Master plan                        Rev. Proc. 2000-20

 

 Minor modification                 Rev. Procs. 87-50, 2000-20

 

 Opinion letter                     Rev. Procs. 2000-20, 2001-4

 

 Prototype plan                     Rev. Proc. 2000-20

 

 Roth IRA                           Rev. Proc. 98-59

 

 SIMPLE IRA                         Rev. Proc. 97-29

 

 SIMPLE IRA Plan                    Rev. Proc. 97-29

 

 Plan Sponsor                       Rev. Proc. 2000-20

 

 Sponsoring organization            Rev. Procs. 87-50

 

 Volume submitter lead specimen

 

  plan                              Rev. Proc. 2000-20

 

 Volume submitter plan              Rev. Proc. 2001-6

 

 Volume submitter specimen plan     Rev. Proc. 2001-6

 

 Word-for-word identical adoption   Rev. Procs. 87-50, 2000-20

 

 

SECTION 6. FEE SCHEDULE

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

 CATEGORY                                                          FEE

 

 _____________________________________________________________________

 

 

 EMPLOYEE PLANS USER FEES

 

 

      .01 LETTER RULING REQUESTS.

 

 

      (1) Computation of exclusion for annuitant under

 

 section 72                                                        $85

 

 

      (2) Change in plan year (Form 5308)                         $130

 

 

 NOTE: No user fee is required if the requested change is

 

 permitted to be made pursuant to the procedure for automatic

 

 approval set forth in Rev. Proc. 87-27, 1987-1 C.B. 769.

 

 In such a case, Form 5308 should not be submitted to the

 

 Service.

 

 

      (3) Change in funding method                                $500

 

 

      (4) Approval to become a nonbank trustee (see section

 

 1.408-2(e) of the Income Tax Regulations)                      $3,250

 

 

      (5) Waiver of minimum funding standard, under section

 

 412(d):

 

 

      (a) Waiver of $1,000,000 or more                          $4,800

 

      (b) Waiver of less than $1,000,000                        $2,050

 

 

      (6) Waiver of excise tax under section 4971(b):

 

 

      (a) Waiver of $1,000,000 or more                          $4,800

 

      (b) Waiver of less than $1,000,000                        $2,050

 

 

      (7) Waiver of the excise tax, under section

 

 4971(f), on failure to pay a liquidity shortfall:

 

 

      (a) Waiver of $1,000,000 or more                          $4,800

 

      (b) Waiver of less than $1,000,000                        $2,050

 

 

      (8) Letter ruling under Rev. Proc. 90-49, 1990-2

 

 C.B. 620                                                         $300

 

      (9) Letter ruling involving the determination of the

 

 account limit under section 419A(c).                           $2,275

 

 

      (10) Individually designed simplified employee pension

 

 (SEP)                                                          $2,275

 

 

      (11) All other letter rulings                             $2,275

 

 

      Reduced fees, or augmented fee, applicable to all other letter

 

 rulings:

 

 

      (a) Letter ruling requests by or on behalf of

 

 eligible retirement plans (within the meaning of section

 

 402(c)(8)(B)) with assets of less than $200,000                  $600

 

 

      (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 $200,000                                               $600

 

 

 NOTE: The reduced fee applies to a married individual

 

 if the combined gross income of the applicant and

 

 the applicant's spouse is less than $200,000. The gross

 

 incomes of the applicant and the applicant's spouse are

 

 not combined, however, if the applicant is legally

 

 separated from his or her spouse and the spouses do

 

 not file a joint income tax return with each other.

 

 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 be made to total income described in

 

 this subparagraph, is less than $200,000.

 

 

      (c) Letter ruling requests from organizations

 

 exempt from income tax under "Subchapter F -- Exempt

 

 Organizations" with gross receipts of less than $200,000        $600

 

 

 NOTE: An organization exempt from income tax under

 

 Subchapter F must certify in its request

 

 for a letter ruling that its gross receipts for the

 

 last full taxable year before the request was filed

 

 were less than $200,000.

 

 

      (d) In situations in which a taxpayer requests

 

 substantially identical letter rulings for multiple

 

 entities with a common member or sponsor, or for multiple

 

 members of a common entity, each additional letter

 

 ruling request after the $2,275 fee or $600 reduced fee, as

 

 applicable, has been paid for the first letter ruling request   $200

 

 

      (e) In situations in which a taxpayer requests

 

 a single letter ruling involving substantially identical

 

 issues of fact and law with respect to multiple

 

 members of a common entity, for each additional entity

 

 after the $2,275 fee or $600 reduced fee, as applicable,

 

 has been paid for the first entity                              $200

 

 

      .02 REQUESTS FOR CERTAIN ADMINISTRATIVE EXEMPTIONS.

 

 

      Requests for administrative exemptions for

 

 participant-directed transactions that are in

 

 compliance with the regulations under section 404(c)

 

 of the Employee Retirement Income Security Act of 1974

 

 (ERISA) but may result in prohibited transactions under

 

 section 4975                                                   $2,275

 

 

 NOTE: The provisions of Rev. Proc. 75-26, 1975-1 C.B. 722,

 

 are applicable to such requests.

 

 

      .03 ADMINISTRATIVE SCRUTINY DETERMINATIONS WITH RESPECT TO

 

 SEPARATE LINES OF BUSINESS.

 

 

      (1) For the first separate line of business for

 

 which a determination is requested                             $4,350

 

 

      (2) For each additional separate line of business for

 

 which a determination is requested                             $1,400

 

 

      .04 OPINION LETTERS AND ADVISORY LETTERS ON MASTER AND

 

 PROTOTYPE PLANS.

 

 

      (1) Mass submitter M & P plan, per basic plan document,

 

 new or amended, with one adoption agreement                    $3,250

 

 

      (2) Mass submitter M & P plan, per each additional

 

 adoption agreement                                               $425

 

 

      (3) Sponsor's word-for-word identical adoption of

 

 M & P mass submitter's basic plan document (or an

 

 amendment thereof), per adoption agreement                       $110

 

 

 NOTE 1: Mass submitters that are sponsoring organizations in

 

 their own right are liable for this fee.

 

 

 NOTE 2: If a mass submitter submits, in any 12-month period

 

 ending January 31, more than 300 applications on behalf

 

 of word-for-word adopters with respect to a particular

 

 adoption agreement, only the first 300 such applications

 

 will be subject to the fee; no fee will apply to those

 

 in excess of the first 300 such applications submitted

 

 within the 12-month period.

 

 

      (4) Sponsor's minor modification of M & P

 

 mass submitter's plan document, per adoption agreement          $250

 

 

      (5) Nonmass submission (new or amended) by M & P

 

 sponsor's , per adoption agreement                            $1,950

 

 

      (6) M & P mass submitter's request for an advisory

 

 letter with respect to the addition of optional provisions

 

 following issuance of a favorable opinion letter (see

 

 section 16.031(c) of Rev. Proc. 2000-20, per basic plan

 

 document (regardless of the number of adoption agreements)      $525

 

 

      (7) M & P mass submitter's addition of new adoption

 

 agreements after the basic plan document and

 

 associated adoption agreements have been approved,

 

 per adoption agreement                                           $425

 

 

      (8) Assumption of sponsorship of an approved M & P plan,

 

 without any amendment to the plan document, by a new

 

 entity, as evidenced by a change of employer identification

 

 number                                                           $250

 

 

      .05 OPINION LETTERS ON PROTOTYPE INDIVIDUAL

 

 RETIREMENT ACCOUNTS AND/OR ANNUITIES, SIMPLIFIED

 

 EMPLOYEE PENSIONS, SIMPLE IRAs, SIMPLE

 

 IRA PLANS, AND ROTH IRAs.

 

 

      (1) Mass submission of a prototype IRA, SEP, SIMPLE

 

 IRA, SIMPLE IRA Plan, or Roth IRA, per plan

 

 document, new or amended                                       $1,150

 

 

      (2) Sponsoring organization's word-for-word

 

 identical adoption of mass submitter's prototype

 

 IRA, SEP, SIMPLE IRA, SIMPLE IRA Plan, or Roth

 

 IRA, per plan document or an amendment thereof                   $110

 

 

 NOTE: If a mass submitter submits, in any 12-month

 

 period ending January 31, more than 300

 

 applications on behalf of word-for-word adopters

 

 of prototype IRAs with respect to a particular plan

 

 document, only the first 300 such applications will

 

 be subject to the fee; no fee will apply to those

 

 in excess of the first 300 such applications

 

 submitted within the 12-month period.

 

 

      (3) Sponsoring organization's minor modification

 

 of mass submitter's prototype IRA, SEP, SIMPLE IRA,

 

 SIMPLE IRA Plan, or Roth IRA, per plan document                  $300

 

 

      (4) Sponsoring organization's nonmass submission

 

 of prototype IRA, SEP, SIMPLE IRA, SIMPLE IRA Plan,

 

 or Roth IRA, per plan document                                   $425

 

 

      (5) Opinion letters on dual-purpose (combined

 

 traditional and Roth) IRAs:

 

 

      (a) Mass submission of a prototype dual-purpose IRA,

 

 per plan document, new or amended                              $2,275

 

 

      (b) Sponsoring organization's word-for-word identical

 

 adoption of mass submitter's prototype dual-purpose IRA,

 

 per plan document or an amendment thereof                        $110

 

 

 NOTE: If a mass submitter submits, in any 12-month

 

 period ending January 31, more than 300 applications on

 

 behalf of word-for-word adopters of prototype dual-purpose

 

 IRAs with respect to a particular plan document, only the

 

 first 300 such applications will be subject to the fee;

 

 no fee will apply to those in excess of the first 300

 

 such applications submitted within the 12-month period.

 

 

      (c) Sponsoring organization's minor modification of mass

 

 submitter's prototype dual-purpose IRA, per plan document        $600

 

 

      (d) Sponsoring organization's nonmass submission of

 

 prototype dual-purpose IRA, per plan document                    $875

 

 

      .06 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 5307                                              $125

 

      (d) Form 5310                                              $225

 

      (e) Form 6406                                              $125

 

      (f) Multiple employer plans (Form 5300):

 

          (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 that

 

 is adopted by other employers after the initial

 

 submission, the fee would be the same as in paragraph

 

 (1) above. If only one employer adopts the plan in

 

 any subsequent year, the fee would be $700.

 

 

      (g) Multiple employer plans (Form 5310):

 

           (i) 2 to 10 employers                                  $225

 

           (ii) 11 to 99 employers                                $450

 

           (iii) 100 to 499 employers                             $900

 

           (iv) Over 499 employers                              $1,800

 

 

      (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 plans (Form 5300):

 

          (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

 

 

 NOTE: In the case of a multiple employer plan that is

 

 adopted by other employers after the initial submission,

 

 the fee would be the same as in paragraph (2) above. If

 

 only one employer adopts the plan in any subsequent year,

 

 the fee would be $1,250.

 

 

      (e) Multiple employer plans (Form 5310):

 

           (i) 2 to 10 employers                                  $375

 

           (ii) 11 to 99 employers                                $600

 

           (iii) 100 to 499 employers                           $1,000

 

           (iv) Over 499 employers                              $2,000

 

 

      (3) Group trusts contemplated by Rev. Rul.

 

 81-100, 1981-1 C.B. 326                                          $750

 

 

      .07 ADVISORY LETTERS ON VOLUME SUBMITTER PLANS.

 

 

      Volume submitter specimen plans                           $1,500

 

      Volume submitter lead specimen plan                       $3,000

 

      Volume submitter specimen plan that is word-for-

 

 word identical to a lead specimen plan                           $100

 

 

 EXEMPT ORGANIZATIONS USER FEES

 

 

      .08 LETTER RULINGS.

 

 

      (1) Applications with respect to change in

 

 accounting period (Form 1128)                                   $140

 

 

 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) Applications with respect to change in accounting

 

 method (Form 3115)                                              $140

 

 

 NOTE: No user fee is charged if the method

 

 described in Rev. Proc. 97-37, 1997-2 C.B. 445, is used.

 

 Taxpayers complying timely with Rev. Proc. 97-37 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                                             $220

 

 

      (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                                                             $220

 

 

 NOTE 1: See Rev. Proc. 95-48, 1995-2 C.B. 418, which

 

 specifies that governmental units and affiliates of

 

 governmental units that are exempt from federal income

 

 tax under section 501(a) are not required to file annual

 

 information returns on Form 990, Return of Organization

 

 Exempt from Income Tax.

 

 

 NOTE 2: There is no additional charge for a determination

 

 of the section 6033 filing requirement from an

 

 organization seeking recognition of exempt status under

 

 section 501 if the organization submits the information

 

 required by line 9 of Part I of Form 1023, Application

 

 for Recognition of Exemption under Section 501(c)(3)

 

 of the Code, or submits a separate written request with

 

 its application for recognition of exemption. Only the

 

 user fee for the initial application for recognition

 

 of exemption applies.

 

 

      (5) Request for approval of a qualified subsidiary

 

 related to a section 501(c)(25) organization.                    $550

 

 

      (6) All other letter rulings                              $2,275

 

 

      Reduced fees applicable to all other letter rulings:

 

 

      (a) Organizations with gross receipts less

 

 than $200,000                                                    $600

 

 

 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 $200,000.

 

 

      (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 $20,000.                          $600

 

 

 NOTE: The reduced fee applies to a married individual

 

 if the combined gross income of the applicant and the

 

 applicant's spouse is less than $200,000. The gross

 

 incomes of the applicant and the applicant's spouse

 

 are not combined, however, if the applicant is legally

 

 separated from his or her spouse and the spouses do

 

 not file a joint income tax return with each other.

 

 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 be made to total income

 

 described in this subparagraph, is less than

 

 $200,000.

 

 

      (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, each additional letter ruling request

 

 after the $2,275 fee or the $600 reduced fee, as

 

 applicable, has been paid for the first letter ruling

 

 request                                                          $200

 

 

      .09 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 no 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) of this section 6.13 whose actual

 

 or anticipated gross receipts exceed the $10,000

 

 average annually                                                 $500

 

 

 NOTE: If an organization that is already

 

 recognized as exempt under section 501(c)

 

 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.

 

 

      (3) Group exemption letters                                 $500

 

 

 Note: An additional fee under (1) or (2) above is required when a

 

 central organization submits an initial application for exemption

 

 with its request for a group exemption letter.

 

 

      .10 SUMMARY OF EXEMPT ORGANIZATION FEES

 

 

      This table summarizes the various types of exempt organization

 

 issues, indicates the office of jurisdiction for each type, and lists

 

 the applicable user fee. Reduced fees may be applicable in certain

 

 instances.

 

 

 ISSUE                                  LOCATION               FEE

 

 _________________________________________________________________

 

 

 Accounting period and

 

   method changes                       Technical              $140

 

 Advance ruling period inquiries        Determinations         none

 

 Amendments, reorganizations,

 

   name changes                         Determinations         none

 

 Application for recognition of

 

   exemption                            Determinations         $500

 

 Confirmation of exemption              Determinations         none

 

 Qualified subsidiaries of section

 

   501(c)(25) organizations             Technical              $550

 

 Regulation 301.9100 relief in

 

   connection with applications for

 

   recognition of exemption             Determinations         none

 

 Section 507 terminations

 

   (a) Notice under section 507(b)(1)

 

       or (2)                           Determinations         none

 

   (b) Advance ruling under 507(b)(1)

 

       or (2)                           Technical             $2275

 

 Section 514(b)(3) Neighborhood

 

   Land Use Rule                        Technical              none

 

 Section 4940(d) exempt operating

 

   foundation status                    Determinations         none

 

 Section 4942(g)(2) set-asides

 

   notification                         Determinations         none

 

 Section 4943(c)(7) extensions of

 

   disposal period                      Technical            $2,275

 

 Section 4945 advance approval of

 

   organization's grant making

 

   procedures                           Determinations         none

 

 Section 4945(f) advance approval of

 

   voter registration activities        Determinations         none

 

 Section 6033 annual information

 

   return filing requirements

 

   (a) requested with original

 

       application                      Determinations         none

 

   (b) requested after recognition

 

       of exemption                     Technical              $220

 

 Unusual grants to certain

 

   organizations under sections

 

   170(b)(1)(A)(vi) and 509(a)(2)       Determinations         none

 

 

SECTION 7. MAILING ADDRESS FOR REQUESTING LETTER RULINGS, DETERMINATION LETTERS, ETC.

.01 MATTERS HANDLED BY THE EP OR EO TECHNICAL. Requests should be mailed to the appropriate address set forth in this section 7.01.

(1) EMPLOYEE PLANS LETTER RULINGS UNDER REV. PROC. 79-61, 79-62, 87-50, 90-49, 94-41, 94-42, 2000-41 or 2000-4:

     Internal Revenue Service

 

     Attention: EP Letter Rulings

 

     P.O. Box 27063

 

     McPherson Station

 

     Washington, D.C. 20038

 

 

(2) EMPLOYEE PLANS OPINION LETTERS OR ADVISORY LETTERS UNDER REV. PROC. 87-50, REV. PROC. 97-29, REV. PROC. 98-59 and REV. PROC. 2000-20:

     Internal Revenue Service

 

     Attention: EP Opinion/Advisory Letter

 

     P.O. Box 27063

 

     McPherson Station

 

     Washington, D.C. 20038

 

 

(3) EMPLOYEE PLANS ADMINISTRATIVE SCRUTINY DETERMINATIONS UNDER REV. PROC. 93-41:

     Internal Revenue Service

 

     Attention: Administrative Scrutiny

 

     P.O. Box 27063

 

     McPherson Station

 

     Washington, D.C. 20038

 

 

(4) EXEMPT ORGANIZATIONS LETTER RULINGS:

     Internal Revenue Service

 

     Attention: EO Letter Rulings

 

     P.O. Box 27720

 

     McPherson Station

 

     Washington, D.C. 20038

 

 

Note: Hand delivered requests must be marked RULING REQUEST SUBMISSION. The delivery should be made:

To the following address between the hours of 8:15 a.m. and 5:00 p.m. where a receipt will be given:

     Courier's Desk

 

     Internal Revenue Service

 

     Attention: T:AS

 

     1111 Constitution Avenue, N.W.

 

     Washington, D.C. 20224

 

 

.02 MATTERS HANDLED BY EP OR EO DETERMINATIONS OFFICE. The following types of requests and applications are handled by the EP or EO Determinations Office and should be sent to the Internal Revenue Service Center in Covington, Kentucky: requests for determination letters and volume submitter advisory letters on the qualified status of employee plans under sections 401, 403(a), and 409, and the exempt status of any related trust under section 501; applications for recognition of tax exemption on Form 1023, Form 1024 and Form 1028; and other applications for recognition of qualification or exemption. The address is:

     Internal Revenue Service

 

     P.O. Box 192

 

     Covington, KY 41012-0192

 

 

Applications shipped by Express Mail or a delivery service should be sent to:

     Internal Revenue Service

 

     201 West Rivercenter Blvd.

 

     Attn: Extracting Stop 312

 

     Covington, KY 41011

 

 

SECTION 8. REQUESTS INVOLVING MULTIPLE OFFICES, FEE CATEGORIES, ISSUES, TRANSACTIONS, OR ENTITIES

.01 REQUESTS INVOLVING SEVERAL OFFICES. If a request dealing with only one transaction involves more than one of the offices within Headquarters (for example, one issue is under the jurisdiction of the Associate Chief Counsel (Income Tax & Accounting) and another issue is under the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division), only one fee applies, namely the highest fee that otherwise would apply to each of the offices involved. See Rev. Proc. 2001-1, this Bulletin, for the user fees applicable to issues under the jurisdiction of the Associate Chief Counsel (Corporate), the Associate Chief Counsel (Financial Institutions & Products), the Associate Chief Counsel (Income Tax & Accounting), or the Associate Chief Counsel (Passthroughs & Special Industries), the Associate Chief Counsel (Procedure and Administration), the Associate Chief Counsel (International) or the Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities).

.02 REQUESTS INVOLVING SEVERAL FEE CATEGORIES. If a request dealing with only one transaction involves more than one fee 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 submethod 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(11) and 6.08(6) 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 United States Treasury, 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, and advisory 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, 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(5) of Rev. Proc. 2001-4, page 21, this Bulletin.

.02 EXAMPLES.

(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. For example, no fee will be refunded where the taxpayer has been advised that a proposed adverse ruling is contemplated and subsequently withdraws its submission.

(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 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 refunded.

(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 section 7. 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:

 

 _____________________________________________________________________

 

 

 Employee plans letter ruling       Employee Plans Technical

 

 requests and all other employee

 

 plans matters handled by EP

 

 Technical

 

 

 Exempt organizations letter        Exempt Organizations Technical

 

 ruling requests

 

 

 Employee plans determination       Manager, EP Determination Quality

 

 letter requests                    Assurance

 

 

 Exempt organizations               Manager, EO Determination Quality

 

 determination letter requests      Assurance

 

 _____________________________________________________________________

 

 

SECTION 12. EFFECT ON OTHER DOCUMENTS

01. Rev. Proc. 2000-8, 2000-1 I.R.B. 230, is superseded.

SECTION 13. EFFECTIVE DATE

This revenue procedure is effective January 15, 2001.

SECTION 14. PAPERWORK REDUCTION ACT

The collections 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(10)(c), 6.10(6)(a) and 6.11. 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 requests; 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 estimated 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 Luis O. Ortiz of Employee Plans, Tax Exempt and Government Entities Division. For further information regarding this revenue procedure, contact the Employee Plans telephone assistance service between the hours of 1:30 and 3:30 p.m., Eastern Standard Time, Monday through Thursday, at (202) 283-9516 or (202) 283-9517 (not toll-free calls). Mr. Ortiz' telephone number is (202) 283-9652 (not a toll-free call). For exempt organization matters, please contact Ms. Susan L. Paul at (202) 283- 8959 (not a toll-free call).

APPENDIX

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

A. PROCEDURES APPLICABLE TO BOTH EMPLOYEE PLANS AND EXEMPT ORGANIZATIONS

Rev. Proc. 2001-4, this Bulletin, provides procedures for issuing letter rulings, information letters, etc., on matters relating to matters under the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division.

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 Internal Revenue Service for the processing of applications for exemption under 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. 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. 93-41, 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. 97-29, 1997-1 C.B. 698, describes model amendments for SIMPLE IRAs; guidance to drafters of prototype SIMPLE IRAs on obtaining opinion letters; permissive amendments to sponsors of nonSIMPLE IRAs; the opening of a prototype program for SIMPLE IRA Plans; and transitional relief for users of SIMPLE IRAs and SIMPLE IRA Plans that have not been approved by the Service.

Rev. Proc. 98-59, 1998-50 I.R.B. 8, provides guidance on obtaining opinion letters to drafters of prototype Roth IRAs, and provides transitional relief for users of Roth IRAs that have not been approved by the Internal Revenue Service.

Rev. Proc. 2000-20, 2000-6 I.R.B. 553, revises and combines the Service's master and prototype (M&P) and regional prototype programs into a unified program for the pre-approval of pension, profit- sharing and annuity plans.

Rev. Proc. 2000-6, 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. 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 Commissioner, Tax Exempt and Government Entities Division.

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.

Rev. Proc. 2000-41, 2000-42 I.R.B. 371, 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.

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.

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