Editor's Note: This revenue procedure has been modified by Rev. Proc. 2002-35 (click) with respect to GUST non-amenders who file by September 3, 2002.

Revenue Procedure 2001-17

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Other parts of this Revenue Procedure:
Table of Contents 1 2 3 4 5 6 7 a b c

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Part III. -- Administrative, Procedural and Miscellaneous

26 CFR 601.202: Closing agreements.

TABLE OF CONTENTS

PART I. INTRODUCTION TO EMPLOYEE PLANS COMPLIANCE RESOLUTION SYSTEM

SECTION 1. PURPOSE AND OVERVIEW

.01 Purpose

.02 General principles underlying EPCRS

.03 Overview

SECTION 2. EFFECT OF THIS REVENUE PROCEDURE ON PROGRAMS

.01 Effect on programs

.02 Future enhancements

PART II. PROGRAM EFFECT AND ELIGIBILITY

SECTION 3. EFFECT OF EPCRS; RELIANCE

.01 Effect of EPCRS on Qualified Plans and SEPs

.02 Effect of EPCRS on 403(b) Plans

.03 Effect of EPCRS on SEPs

.04 Compliance Statement

.05 Other taxes and penalties

.06 Reliance

SECTION 4. PROGRAM ELIGIBILITY

.01 Programs for Qualified Plans and 403(b) Plans

.02 Eligibility for other arrangements

.03 Effect of examination

.04 Favorable Letter requirement

.05 Established practices and procedures

.06 Correction by plan amendment

.07 Submission for a determination letter

.08 Availability of correction of Employer Eligibility Failure

.09 Egregious failures

.10 Diversion or misuse of plan assets

PART III. DEFINITIONS, CORRECTION PRINCIPLES, AND RULES OF GENERAL APPLICABILITY

SECTION 5. DEFINITIONS

.01 Definitions for Qualified Plans

.02 Definitions for 403(b) Plans

.03 Under Examination

.04 SEP

SECTION 6. CORRECTION PRINCIPLES AND RULES OF GENERAL APPLICABILITY

.01 Correction principles; rules of general applicability

.02 Correction principles

.03 Correction of an Employer Eligibility Failure (only available under VCP general procedures, VCT, and VCSEP)

.04 Correction by plan amendment

.05 Special rules relating to Excess Amounts

.06 Correction under statute or regulations

.07 Matters subject to excise taxes

.08 Correction for SEPs

.09 Confidentiality and disclosure

.10 No effect on other law

PART IV. SELF-CORRECTION (SCP)

SECTION 7. IN GENERAL

SECTION 8. SELF-CORRECTION OF INSIGNIFICANT OPERATIONAL FAILURES

.01 Requirements

.02 Factors

.03 Multiple failures

.04 Examples

SECTION 9. SELF-CORRECTION OF SIGNIFICANT OPERATIONAL FAILURES

.01 Requirements

.02 Correction period

.03 Correction by plan amendment

.04 Substantial completion of correction

.05 Examples

PART V. VOLUNTARY CORRECTION WITH SERVICE APPROVAL (VCP)

SECTION 10. VCP GENERAL PROCEDURES

.01 VCP requirements

.02 Identification of failures

.03 Effect of VCP submission on examination

.04 No concurrent examination activity

.05 Submission of determination letter application for plan amendments

.06 Processing of submission

.07 Compliance statement

.08 Effect of compliance statement on examination

.09 Processing of determination letter applications not submitted under VCP

.10 Special rules relating to VCO

.11 Special rules relating to VCS

.12 Special rules relating to Anonymous (John Doe) Submission Procedure

.13 Special rules relating to VCT

.14 Special rules relating to VCGroup

.15 Special rules relating to VCSEP

.16 Multiemployer and multiple employer plans

SECTION 11. APPLICATION PROCEDURES FOR VCP

.01 General Rules

.02 Submission requirements

.03 Submission requirements under special procedures

.04 Required documents

.05 Date VCP fee due generally

.06 Fee due earlier for VCO, VCS, Anonymous Submission, VCGroup, and VCSEP

.07 Signed submission

.08 Power of attorney requirements

.09 Penalty of perjury statement

.10 Checklist

.11 Designation

.12 VCP mailing address

.13 Maintenance of copies of submissions

SECTION 12. VCP FEES

.01 VCP general procedure compliance fee

.02 VCO fee

.03 VCS fee

.04 Fee for Anonymous Submission

.05 VCT fee

.06 VCGroup fees

.07 VCSEP fees

.08 Establishing amount of assets and number of plan participants

PART VI. CORRECTION ON AUDIT (AUDIT CAP)

SECTION 13. DESCRIPTION OF AUDIT CAP

.01 Audit CAP requirements

.02 Payment of sanction

.03 Additional requirements

.04 Failure to reach resolution

.05 Effect of closing agreement

.06 Other procedural rules

SECTION 14. AUDIT CAP SANCTION

.01 Determination of sanction

.02 Factors considered

.03 Transferred Assets

PART VII. EFFECT ON OTHER DOCUMENTS; EFFECTIVE DATE; PAPERWORK REDUCTION ACT

SECTION 15. EFFECT ON OTHER DOCUMENTS

.01 Revenue procedures modified and superseded

.02 Rev. Proc. 2001-8 modified

SECTION 16. EFFECTIVE DATE

SECTION 17. PAPERWORK REDUCTION ACT

DRAFTING INFORMATION

APPENDIX A: OPERATIONAL FAILURES AND CORRECTIONS UNDER VCS

.01 General Rule

.02 Failure to properly provide the minimum top-heavy benefit under section 416 of the Code to non-key employees

.03 Failure to satisfy the ADP test set forth in section 401(k)(3), the ACP test set forth in section 401(m)(2), or the multiple use test of section 401(m)(9)

.04 Failure to distribute elective deferrals in excess of the section 402(g) limit (in contravention of section 401(a)(30))

.05 Exclusion of an eligible employee from all contributions or accruals under the plan for one or more plan years

.06 Failure to timely pay the minimum distribution required under section 401(a)(9)

.07 Failure to obtain participant and/or spousal consent for a distribution subject to the participant and spousal consent rules under sections 401(a)(11), 411(a)(11), and 417

.08 Failure to satisfy the section 415 limits in a defined contribution plan

APPENDIX B: CORRECTION METHODS AND EXAMPLES; EARNINGS ADJUSTMENT METHODS AND EXAMPLES

SECTION 1. PURPOSE, ASSUMPTIONS FOR EXAMPLES AND SECTION REFERENCES

.01 Purpose

.02 Assumptions for Examples

.03 Section References

SECTION 2. CORRECTION METHODS AND EXAMPLES

.01 ADP/ACP Failures

.02 Exclusion of Eligible Employees

.03 Vesting Failures

.04 Section 415 Failures

.05 Correction of Other Overpayment Failures

.06 Section 401(a)(17) Failures

.07 Correction by Amendment Under VCP and SCP

SECTION 3. EARNINGS ADJUSTMENT METHODS AND EXAMPLES

.01 Earnings Adjustment Methods

.02 Examples

APPENDIX C: VCP CHECKLIST

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Other parts of this Revenue Procedure:
Table of Contents 1 2 3 4 5 6 7 a b c