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Compliance February 11, 2011
IRS Fees Cut for Some EGTRRA Plan Document Filing
Sponsors applying to the Internal Revenue Services' (IRS) Voluntary Correction Program (VCP) may be able to save some money in the process.
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.