8717 user fee

[Guest jim williams]

I am a TPA preparing an IRS submission for a Determination Upon Plan Termination. Upon preparing Form 8717 (Rev. 9-2004), I noticed the form still contains the Certification for fee exemption under EGTRRA Sec. 620. I thought this exemption was repealed under Rev. Proc. 2004-8?

[Blinky the 3-eyed Fish]

Why would you think that?

[Guest jim williams]

It states in Sec 3 of Rev. Proc 2004-8 that IRC Sec. 7528 was added resulting in the repeal of Sec. 620 of EGTRRA. However, upon reviewing Sec. 7528 it reiterates the exemption for plan years that have not been in existence for more than 5 years. This exemption applies to the plan I am submitting so I'll have the client sign the Certification. I'm confused as to what was repealed.

[Blinky the 3-eyed Fish]

Sec. 7528 it reiterates the exemption for plan years that have not been in existence for more than 5 years.

Note that the user fee exemption applies to plans described in the instructions to the 8717. One item to note is that a plan that was first effective on or after 12/9/1989 is eligibile for the user fee waiver if it meets the other requirements. 5 years is not the standard. I should add that a determination letter request is needed as described.

As a side note, I have seen so many TPA's make their clients pay user fees because they don't understand the rules. I am glad you are asking questions.

[KJohnson]

Now I am confused. I thought that the only exception to the 5 years was if you got your request in by the end of the GUST RAP. I think the GUST RAP is up for everyone.

[Blinky the 3-eyed Fish]

Well now I suppose it is. Disregard my previous answer. Although now we are within the EGTRRA remedial amendment period, which began 7/01? I am not sure of the official date. That though would extend backwards 5 years from that point.

[Guest jim williams]

The exemption applies to the later of the 5th plan year the plan is in existence or the end of the RAP.

[Guest saber]

Well now I suppose it is.  Disregard my previous answer.  Although now we are within the EGTRRA remedial amendment period, which began 7/01?  I am not sure of the official date.  That though would extend backwards 5 years from that point.

IRS Notice 2003-49 covers the dates for EGTRRA RAP zero dollar userfees.