July 29, 2015
Authored by: benefitsbclp
Last week, at the Western Benefits Conference, IRS Commissioner of the Tax Exempt and Government Entities Division, Sunita B. Lough, addressed the conference minutes after the IRS released Ann. 2015-19, 2015-32 IRB. This is the announcement reforming the determination letter process primarily for individually designed plans.
Commissioner Lough explained the rationale for elimination of the determination letter process for individually designed plans other than on plan adoption and termination. She stated that the average time a reviewer takes to determine that a plan is compliant is three hours. This limited time results from the significant number of applications and the shortage of qualified IRS personnel due to budget limitations. Based on a three hour review, the IRS has been issuing, in her view, an opinion letter that would take a law firm