Defect Discovered in DL Review

[Guest Patrick Foley]

In reviewing a DB plan with about 500 participants for EGTRRA determination letter, IRS has questioned whether plan was timely amended for CRA -- the 132(f)(4) language. If amendment wasn't timely, what range can we expect for the IRS sanction?

[J Simmons]

Had this been discovered before the DL application or an EP exam, it could have been corrected using the VCP per Rev Proc 2006-27 (sec 12.03) for as little as $375, based on an application using Appendix F for form.

Given that the Service discovered the CRA document failure on DL application review, you're remedy is Audit CAP. Sec 14.04 sets forth a table of maximum fees, based on number of employees. EGTRRA/Subsequent Legislation is your category. Sec 14.01 'negotiation' is probably not available.

[Guest Patrick Foley]

Thanks, J Simmons, for the information--and also for your kindness in not pointing out that I should have read the Rev Proc before posting.