Guidance Issued Regarding User Fee Exemption for Employee Plans Determination Letter Applications (Notice 2017-1)

first_imgCCH Tax Day ReportThe IRS has provided guidance on the circumstances under which the IRS will treat an application for a determination letter as being filed within a qualifying open remedial amendment period. The guidance reflects changes made to the determination letter program and remedial amendment period rules in Rev. Proc. 2016-37, I.R.B. 2016-29, 136.The IRS will treat an application for a determination letter as being filed within a qualifying open remedial amendment period if the plan was first in existence no earlier than January 1 of the tenth calendar year preceding the year in which the application is filed (10-year rule). Further, an application that satisfies the requirements for the user fee exemption, but does not meet the requirements for the 10-year rule, may be filed without a user fee; however, the application must include a statement describing how the application satisfies the exemption under Code Sec. 7528(b)(2)(B).The guidance generally applies to all applications for determination letters that are filed on or after January 1, 2017. Notice 2002-1, 2002-1 CB 283, is amplified. Notice 2011-86, I.R.B. 2011-45, 698, is obsoleted.Notice 2017-1, 2017FED ¶46,203Other References:Code Sec. 7528CCH Reference – 2016FED ¶42,816Y.10Statement of Procedural Rules Sec. 601.201CCH Reference – 2016FED ¶43,360.031CCH Reference – 2016FED ¶43,360.205CCH Reference – 2016FED ¶43,360.2112CCH Reference – 2016FED ¶43,360.2113Tax Research ConsultantCCH Reference – TRC RETIRE: 51,400last_img


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