IRS provides overview of determination letter review process


In the latest issue of Employee Plans News, IRS Employee Plans (EP) has provided an overview of the determination letter application review process. EP uses a multi-step review process for determination letter applications to reduce the technical review processing time and improve the quality of its technical review of each application.

Step 1 – technical screening

EP assigns the application to a technical screener to determine if the plan sponsor has any other pending applications and if the plan has any prior determination letters. EP then reviews the application to make sure it is on-cycle (under Rev. Proc. 2007-44) and procedurally complete (i.e., the correct user fee is submitted, the required forms are completed, signed and dated, and the plan document and amendments are included). EP returns applications that do not meet the requirements of Rev. Proc. 2013-6, as annually updated.

Step 2 – review for applicable Cumulative List

A specialist reviews the application under its applicable Cumulative List. If there aren’t any technical issues and the plan document fully complies with the Cumulative List, then the specialist will issue a favorable determination letter and close the file. If the specialist discovers technical issues or needs more information, then that person will forward the application to the third step of review.

Step 3 – further review

In the third step, a specialist reviews the application and will contact the applicant and designated representative to resolve any issues before issuing a favorable determination letter.

Source: IRS Employee Plans News, Issue 2013-2, June 24, 2013.

For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer’s Benefits Reports.

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