January 8, 2016
Authored by: Katharine Finley and benefitsbclp
On January 4, 2016, the Internal Revenue Service published its annual update of user fees Rev. Proc. 2016-8 for various letter ruling and determination letter requests. The 2016 update now includes user fees and guidance for Voluntary Correction Program (VCP) submissions under the Employee Plans Compliance Resolution System. In many cases the user fee for VCP submissions is reduced under Revenue Procedure 2016-8. The revised fee schedule for employee plan user fees (including VCP submissions) is effective February 1, 2016.
Below are the current user fees for regular VCP submissions for qualified plans and 403(b) plans as set forth in Section 12.02 of Revenue Procedure 2013-12.*
|Participants||Revenue Procedure 2013-12 Fee|
|20 or fewer participants||$750|
|21 to 50 participants||$1,000|
|51 to 100 participants||$2,500|
|101 to 500 participants||$5,000|
|501 to 1,000 participants||$8,000|
|1,001 to 5,000 participants||$15,000|
|5,001 to 10,000 participants||$20,000|
|Over 10,000 participants||$25,000|
* User fees for VCP filings relating to certain minimum distribution or plan loan failures were revised in Revenue Procedure 2015-27.
Below are the user fees, effective February 1, 2016, for regular VCP submissions for qualified plans and 403(b) plans as set forth in Section 6.08 of Revenue Procedure 2016-8.
|Participants||Revenue Procedure 2016-8 Fee|
|20 or fewer participants||$500|
|21 to 50 participants||$750|
|51 to 100 participants||$1,500|
|101 to 1,000 participants||$5,000|
|1,001 to 10,000 participants||$10,000|
|Over 10,000 participants||$15,000|
Note: Revenue Procedure 2016-8 also includes additional user fee changes for other types of VCP filings, letter rulings, determination letter requests and exempt organization user fees.
The Service is in the process of revising Form 8951, Compliance Fee for Application for Voluntary Correction Program (VCP) (rev. September 2015). Until the revised form is published, the guidance states that the existing form should be used, however the appropriate user fee should be submitted based on the applicable revenue procedure.