Compliance
IRS Fees Cut for Some EGTRRA Plan Document Filing
<font size="2" face="Arial" color="#000000">Sponsors applying to the Internal Revenue Services' (IRS) Voluntary Correction Program (VCP) may be able to save some money in the process.</font>
Reported by Fred Schneyer
The IRS announced that for those applying to correct the failure of not adopting a pre-approved EGTRRA plan by the April 30, 2010, a discounted fee of $375 applies to sponsors who file a VCP application on or before May 20, 2011 (postmarked within one year of the missed deadline). The applying plans also must:
- Have had no other plan qualification failures;
- Have 20 or fewer people in their plan.
The EGTRRA plan adoption requirement involved pre-approved 401(k), profit-sharing, money purchase or other defined contribution plan documents. The VCP fee for these plans will be $750 after April 30, 2011, the tax agency said.
The VCP Submission kit is at http://www.irs.gov/pub/irs-tege/0430_nonamender_submission_kit.pdf.