Common use of Effect on programs Clause in Contracts

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 participation by otherwise eligible employees. • permitting correction for employers that were not eligible to sponsor 401(k) plans at the time they adopted the plans. • clarifying that the ability to self-correct insignificant failures continues to be available under SCP during a plan examination, whether the failure is identified by the Plan Sponsor or by the Service. • clarifying the reporting requirements applicable to excess distributions from qualified plans and SEPs. • clarifying how fees are calculated with respect to multiemployer and multiple employer plans. • clarifying that a failure not disclosed by the Plan Sponsor, but discovered by the Service during the processing of a determination letter submission is subject to the sanction structure of Audit CAP. • updating the definition of Favorable Letter to take into account GUST (as defined in section 5.01(5)(d)).