Subscribe (Free) to
Daily or Weekly Newsletters
Post a Job

Featured Jobs

Retirement Plan Relationship Manager

ERISA Services, Inc.
(Remote)

ERISA Services, Inc. logo

Relationship Manager

Compass Retirement Consulting Group, Inc.
(Remote / NH)

Compass Retirement Consulting Group, Inc. logo

Defined Benefit Calculation Specialist/Actuary

The Angell Pension Group, Inc.
(Remote / East Providence RI)

The Angell Pension Group, Inc. logo

Jr Retirement Plan Administrator/ Administrative Assistant

Hochheiser Deutsch & Co, Inc.
(Melville NY)

Hochheiser Deutsch & Co, Inc. logo

Retirement Plan Legal Specialist

Pentegra
(Remote / West Harrison NY)

Pentegra logo

Client Service Manager

United 401(k) Plans, Inc.
(Remote)

United 401(k) Plans, Inc. logo

Distribution \ Loan Clerk

Retirement, LLC
(Remote / Oklahoma City OK)

Retirement, LLC logo

401(k) Distribution Manager

Nova 401(k) Associates
(Remote)

Nova 401(k) Associates logo

Associate General Counsel

Central Pension Fund of the IUOE
(Washington DC)

Central Pension Fund of the IUOE logo

Retirement Plan Consultant

Carpenter Morse Group
(Remote)

Carpenter Morse Group logo

Attorney

Central Pension Fund of the IUOE
(Washington DC)

Central Pension Fund of the IUOE logo

Executive Compensation Lawyer

Trucker Huss, A Professional Corporation
(Remote / San Francisco CA)

Trucker Huss, A Professional Corporation logo

Quality Assurance Manager

Bates & Company
(Remote / Winter Park FL)

Bates & Company logo

Enrolled Actuary

Prime Pensions, Inc.
(Remote)

Prime Pensions, Inc. logo

Retirement Plan Administrator

Nicholas Pension Consultants
(Remote / Corona CA / Rancho Cordova CA)

Nicholas Pension Consultants logo

View More Employee Benefits Jobs

Free Newsletters

“BenefitsLink continues to be the most valuable resource we have at the firm.”

-- An attorney subscriber

Mobile App image LinkedIn icon
Twitter icon
Facebook icon

BenefitsLink > Q&A Columns >

Who's the Employer?

Answers are provided by S. Derrin Watson, JD, APM

Effect of ASG Determination Letter

(Posted March 16, 2017)

Question 337: If the IRS just issued a determination letter to client on a Cycle E submission ruling there was not an affiliated service group, can we hang our hat on that "forever," provided the facts and circumstances never change? Frankly, we were surprised they ruled in that fashion.

Answer:

You ask an excellent question, and there is no reason why the answer should not be yes. It is true the IRS has stopped giving determination letters on ASG status. But that does not mean letters previously issued become invalid. Determination letters no longer have an expiration date, so indeed you should be able to continue to rely on your letter if your facts remain the same.

I want to address your surprise at the determination. One of the wonderful things about the ASG determination letter process is that the IRS was willing to issue favorable letters, even when the "letter of the law" would indicate a different result. Several times, I told employers that I would opine that an ASG existed, or that the question was close. I urged the clients to file with the IRS in the hopes that the Service would look at the equities of the situation and mitigate what was a harsh approach. (For example, it's one thing to say a doctor and her staff have a single employer under the ASG rules; it is sometimes quite another to say the doctor must be aggregated with the local hospital.) Frequently the IRS accommodated. 

But all that is in the past. The Treasury is reviewing the ASG regulations, perhaps with the hope of finalizing them. That would be wonderful. Next year the proposed regulations will be old enough to run for President of the United States. Perhaps as a part of the process the Treasury can add some of those safeguards, such as the professional corporation exemption which appears in the proposed regulations. Some carefully crafted exceptions can do much to provide certainly in an increasingly uncertain environment.


Important notice:

Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner or to readers. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of this and similar situations.

The law in this area changes frequently. Answers are believed to be correct as of the posting dates shown. The completeness or accuracy of a particular answer may be affected by changes in the law (statutes, regulations, rulings, court decisions, etc.) that occur after the date on which a particular Q&A is posted.


Copyright 1999-2017 S. Derrin Watson
Related links:

(restricted access)

(restricted access)

© 2023 BenefitsLink.com, Inc.