IRS Updates Procedures for Issuing Various Plan Guidance

Revisions include an exception from the user fee requirement for information letter requests received after February 8, 2008, and incorporation of the 2007 changes to the cyclical determination letter process.

According to EBIA, many of the changes for 2008 are editorial, such as reorganizing material and updating references, but some significant changes include:

• Rev. Proc. 2008-1. – This procedure explains the forms of advice that the various IRS counsel offices provide to taxpayers, how taxpayers can request that advice, and how the IRS provides it. The procedure includes a user fee schedule for certain ruling requests. Revisions include an exception from the user-fee requirement for information letter requests received after February 8,
  2008.
• Rev. Proc. 2008-3. – This procedure lists areas in which the various IRS counsel offices will not issue letter rulings or determination letters, including, whether a self-insured medical reimbursement plan satisfies the nondiscrimination requirements of Code Section 105(h) for a plan year; whether amounts used to provide various benefits are includible in participants’ gross income and considered “wages” for employment tax purposes when the benefits are offered through a Code Section 125 cafeteria plan; and whether an action is “gross misconduct” within the meaning of Code Section 4980B(f)(3)(B) (the COBRA provision regarding termination of
  employment).
• Rev. Proc. 2008-4. – This procedure explains how the IRS gives guidance on issues under the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division. The procedure
  states that the IRS will not issue letter rulings or determination letters in certain areas, including whether cafeteria plans meet the Code Section 125 requirements and whether certain plans (including plans of Indian tribal governments) are governmental plans under Code Section 414(d). The IRS also will not issue letter rulings on partial terminations of qualified retirement plans, including 401(k) plans (though it may issue determination letters on partial terminations).
• Rev. Proc. 2008-6. – This procedure sets forth the IRS’s general rules for determination letter requests on the qualified status of retirement plans, including 401(k) plans. Most of the revisions either incorporate the 2007 changes made to the cyclical determination letter process, as described in Revenue Procedure 2007 or update references to the first submission period for Cycle C individually designed plans and Code Section 414(d) governmental plans, EBIA said.
• Rev. Proc. 2008-8. – This procedure provides guidance on complying with the user fee program for requests for letter rulings, determination letters, and other guidance under the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division. Revisions include increases in certain user fees. The user fees for retirement plan determination letter requests have not changed.

Internal Revenue Bulletin 2008-1 is located here.