IRS Update Procedure for Determination Letter Requests

On January 2, 2020, the IRS released Revenue Procedure (Rev. Proc.) 2020-04, which explains the IRS procedures for issuing determination letters for employee benefit plans and transactions.

Among other changes, Rev. Proc. 2020-04 supersedes Rev. Proc. 2019-4 and updates those procedures by adding a list of those documents that should be included in applications for determination letters, updating mailing addresses, and including recent changes to the Voluntary Correction Program. It adds a category of determination requests submitted by an adopting employer (or a controlling member of a multiple employer plan, if applicable) of a pre-approved plan regarding the third (and subsequent) remedial amendment cycles; provides that the IRS will accept determination letter applications for certain individually designed merged plans on an ongoing basis; sets forth procedures for an adopting employer of a pre-approved plan (or the controlling member, in the case of a multiple employer plan) to submit an application for a determination letter; and provides procedures for an adopting employer of a pre-approved plan to submit a Form 5307 to request a determination letter with respect to the second and the third six-year remedial amendment cycles.

Employers that may need to request a determination letter should review this guidance and work with their service providers to submit any necessary applications.

Rev. Proc. 2020-04 »