Volume submitter

[Guest bergs]

We have a volime submitter plan whose adopting employers failed to adopt EGTRRA good-faith amendments by 9/30/03. In addition, the plan sponsor didn't submit the speciman document for an advisory opinion by 1/31/06.

I'm confused as to the relief available for "Group Submissions" under Rev. Proc. 2006-27. I understand that VCP is available for the vS sponsor. But does a compliance statement provide relief for the adopting employers as well so that an adopting employer isn't required to take independent action?

If not, what actions (under the Rev. Proc. or otherwise) are available for the adopting employers?

Thank you.

[Bob R]

I believe the group submission is that you're taking care of all the employers at once. The volume submitter practitioner has no problem - thus VCP does nothing. It's the employers that have a problem and the group submission is the action to take to clear it up for all employers.

Also, regarding the failure to submit by Jan. 31, 2006, is not currently a VCP item. The reason is b/c the failure to meet that date just means that all the employers must update for EGTRRA using the 5-year cycle for individually designed plans. That's not something the IRS wants and I recently heard that guidance will be issued to provide a correction for this situation. I suppose it would involve a sanction to be paid by the practitioner and then the volume submitter will be treated as having been filed by 1/31/06 thereby entitling the prior adopting employers to the 6-year cycle.