Effect on programs Sample Clauses
The "Effect on programs" clause defines how a contract or agreement impacts existing or future programs, policies, or initiatives governed by the parties. Typically, this clause clarifies whether the terms of the agreement will alter, override, or leave unchanged any current programs, such as employee benefits, training initiatives, or compliance protocols. Its core function is to prevent confusion or unintended consequences by explicitly stating the relationship between the agreement and other ongoing programs, ensuring all parties understand the scope and limitations of the contract’s influence.
Effect on programs. This revenue procedure modifies and supersedes Rev. Proc. 2006-27, 2006-1 C.B. 945 (as modified by Rev. Proc. 2007-49, 2007-30 I.R.B. 141), which was the prior consolidated statement of the correction programs under EPCRS. The modifications to Rev. Proc. 2006-27 that are reflected in this revenue procedure include: • Expanding the definition of plan loan failure to include violations of § 72(p)(2), regardless of whether the plan contains language relating to § 72(p). (sections 4.01 and 6.07) • Clarifying that in particular cases the Service may decline to make available one or more correction programs under EPCRS in the interest of sound tax administration. (section 4.01(5)) • Expanding the scope of the SCP by: (i) liberalizing the requirements for determining whether there was substantial completion of correction as of the first date the plan or Plan Sponsor is considered to be Under Examination and (ii) expanding the failures for which sample correction methods are provided. (sections 4.05(2) and 9.04, Appendix A .05, and Appendix B 2.02) • Expanding the correction method with respect to elective deferrals to include catch-up contributions under § 414(v) and plans that provide the opportunity for an employee to designate all or a portion of elective deferrals as designated ▇▇▇▇ contributions. (Appendix A .05, and Appendix B 2.02) • Expanding the correction method for a failure to include an eligible employee in a § 401(k) plan to include a situation in which elective deferral and after-tax employee contribution elections are not implemented by the employer or are implemented in a manner inconsistent with the plan’s terms. (Appendix A .05 and Appendix B 2.02) • Revising the requirements for submitting a determination letter application when correcting certain Qualification Failures by plan amendment. (sections 6.05, 10.08, and 11.01) • Clarifying the scope of a compliance statement issued when correcting certain Qualification Failures by plan amendment. (sections 6.05 and 10.08) • Updating the definition of Excess Amounts and providing corrections for Excess Amounts failures, including those resulting from the failure to satisfy the requirements of § 415. This update includes correction rules largely similar to the corrections that were at § 1.415-6(b)(6)(iii) of the Income Tax Regulations (as it appeared in the April 1, 2007 edition of 26 CFR part 1) prior to amendments made by the recently finalized regulations under § 415, but with the amount placed in...
Effect on programs. This revenue procedure modifies and supersedes Rev. Proc. 2002-47, 2002-29 I.R.B. 133, which was the prior consolidated statement of the correction programs under EPCRS. A number of changes have been made to simplify EPCRS and increase uniformity in the administration process and fee structure. The modifications to Rev. Proc. 2002-47 that are reflected in this revenue procedure include: • consolidating all voluntary correction procedures into a single voluntary correction program (VCP) (sections 4.01(2), 10) • providing a fixed fee schedule for all VCP submissions (section 12) • eliminating the Voluntary Correction of Operational Failures Standardized procedure (VCS) (section 10) • providing for a single time for payment of compliance fees for most VCP submissions (sections 11.04, 11.05) • expanding EPCRS to SIMPLE IRA Plans (section 4.01) • adding correction methods and reporting instructions for SEPs and SIMPLE IRA Plans (section 6.10) • simplifying the Group Submission procedure by eliminating the POA requirement and revising the Group Submission compliance fee (sections 10.12(3)(b), 12.04) • eliminating the requirement that VCP compliance fees be submitted by certified or cashier’s check (sections 10.06, 11.05 and 12.01) • expanding the Anonymous and Group Submission procedures to all submissions under VCP including SEPs and SIMPLE IRA Plans (section 10.11, 10.12) • providing rules relating to reporting plan loan failures (section 6.07) • providing guidance for EGTRRA nonamenders (section 4.10) • expanding the definition of Overpayment (section 5.01(6)) • clarifying the special exception to full correction for imprecise or unavailable data (section 6.02(5)(a)) • adding a correction method for a failure to obtain spousal consent (section 6.04) • clarifying that the correction of failures in a terminated plan may be made under VCP whether or not the trust is in existence (section 10.03) • updating the definition of Favorable Letter (section 5.01(4)) • revising the Form 5500 information required for VCP submissions (section 11.03) • extending correction methods in Appendix A and Appendix B to 403(b) Plans, SEPs and SIMPLE IRA Plans (Appendix A, section .01 and Appendix B, section 1.01) • expanding the correction method for early inclusion of an otherwise eligible employee to include improper inclusion due to the application of an incorrect entry date (Appendix B, section .07(3)) • eliminating the factor under Audit CAP that referred to the VCP fees to emp...
Effect on programs. This revenue procedure affects the programs as fol- lows: • consolidates and coordinates guid- ance issued in 1998 and 1999 into a unified EPCRS procedure; • clarifies the application of FICA and FUTA taxes (and corresponding withholding obligations) to cor- rected Qualified Plans and 403(b) Plans; and • clarifies that the statute of limita- tions for purposes of redetermining taxes for a closed taxable year will not be reopened solely because of correction of a failure that occurred in such year.
Effect on programs. This revenue procedure modifies and supersedes Rev. Proc. 2000-16, 2000-6 I.R.B. 518, which was the prior consolidated statement of the correction programs under EPCRS. Many of the modifications have been made in response to public comments, and further changes are expected to be made in the future in response to comments previously received. The modifications to Rev. Proc. 2000- 16 that are reflected in this revenue procedure include: • combining the prior programs that allow voluntary correction with Service approval – previously VCR, Walk-In CAP, and TVC -- into a single voluntary correction program, called VCP. VCP includes special procedures for certain Operational Failures (VCO and VCS, the successors to VCR and SVP respectively) and for 403(b) Failures (VCT, the successor to TVC), and also includes other new, special procedures described below. • renaming the previous APRSC program the Self-Correction Program (SCP). • broadening the submission procedures under VCP to allow certain organizations, such as master and prototype sponsors or third-party administrators, to receive a compliance statement for correcting failures that affect more than one Plan Sponsor (VCGroup). • revising the submission procedures under VCP to allow Plan Sponsors to submit a request on an anonymous (“▇▇▇▇ ▇▇▇”) basis. • expanding EPCRS to add new procedures specially designed for small employers that sponsor SEPs, permitting small employers to self-correct insignificant SEP failures and making special accommodation for SEP sponsors under EPCRS to take into account special circumstances affecting them. • extending the duration of the self-correction period under SCP (the former APRSC) for significant operational compliance failures where the Plan Sponsor accepts a transfer of plan assets or effects a plan merger in connection with a corporate merger, acquisition, or other transaction. • facilitating correction under SCP, VCP, and Audit CAP of previous Qualification Failures by Plan Sponsors that accept transfers of plan assets or effects plan mergers in connection with corporate transactions. • permitting correction through retroactive amendment where employees are permitted to begin participation before they are eligible (see Example 22 in Appendix B). • permitting correction through retroactive amendment under SCP and VCO for failures related to permitting hardship withdrawals, providing benefits based on compensation in excess of the section 401(a)(17) limit, and premature...
Effect on programs. This revenue procedure modifies and supersedes Rev. Proc. 2001-17, 2001-7 I.R.B. 589,2002-47, 2002-29 I.R.B. 133, which was the prior consolidated statement of the correction programs under EPCRS. A number of changes have been made to simplify EPCRS and increase uniformity in the administration process and fee structure. The modifications to Rev. Proc. 2001-172002- 47 that are reflected in this revenue procedure include: extending the duration of the self-correction period under SCP for significant operational compliance failures where the Plan Sponsor assumes a plan in connection with a corporate merger, acquisition, or other transaction. (section 9.02(2)) extending the Anonymous Submission Procedure indefinitely. (section 10.13(3)) expanding the Anonymous Submission Procedure to permit the submission of failures listed in Appendix A and Appendix B. (section 10.13(1)) expanding the Anonymous Submission Procedure to VCGroup and VCSEP submissions. (section 10.13(1)) expanding the definition of Employer Eligibility Failure to include the adoption of a 401(k) plan by any ineligible employer. (section 5.01(2)(d)) broadening the VCGroup procedures to permit eligible organizations to submit operational and plan document failures in a single submission. (section 10.15(1)) increasing the de minimis amount relating to corrective distributions. (section 6.02(5)(b)) providing a de minimis rule for correcting certain Overpayments. (section 6.02(5)(c)) clarifying the date by which correction of a failure related to Transferred Assets must be completed. (section 12.08) clarifying that the correction of failures in a terminated plan may be made under VCP. (section 10.03) clarifying what items may be excluded from the initial submission under the Anonymous Submission Procedure. (section 10.13(1)) updating the definition of Favorable Letter. (section 5.01(4)) modifying the correction procedure relating to Excess Amounts under VCT and overcontributions under VCSEP. (sections 12.05(3) and 12.07(2))consolidating all voluntary correction procedures into a single voluntary correction program (VCP) (sections 4.01(2), 10) • eliminating the Voluntary Correction of Operational Failures Standardized procedure (VCS) (section 10) • providing for a single time for payment of compliance fees for most VCP submissions (sections 11.04, 11.05) • adding correction methods and reporting instructions for SEPs and SIMPLE IRA Plans (section 6.10) • simplifying the Group Submission procedure by e...