Rev. Proc. 2003-44 -- SIMPLE Plans covered

[Guest HRlawguy]

New Rev. Proc. 2003-44 (which was released June 23, 2003) supersedes Rev Proc. 2002-47 effective October 1, 2003, but allows plans to adopt Rev. Proc. 2003-44 after June 5, 2003. For the first time, SIMPLE Plans are specifically covered.

We have been working on a voluntary compliance arrangement for a SIMPLE plan (technically "outside of VCP") for almost a year (and it has trailed on mostly because of delays within the IRS). We have just received a letter asking whether we want to "convert" the closing agreement to a compliance statement under the new Rev. Proc., but without any indication as to how such a conversion might affect what has already been done--whether we would have to make additional submissions, whether the proposed sanctions would change, etc.

Would be interested in having some insight as to possible advantages or disadvantages of making the change.