part7-16
- 7.13.3.1
Overview - 7.13.3.2
Instructions - 7.13.3.3
Scanning Applications - 7.13.3.4
Criteria for Applications - 7.13.3.5
Application Requirements - 7.13.3.6
Volume Program (Specimen-Prototype Plans) - 7.13.3.7
Transfer of Cases - 7.13.3.8
Case File Assembly - 7.13.3.9
Input to DTS - 7.13.3.10
Closing Procedures - Exhibit 7.13.3-1
EP Master & Prototype (M&P) and Volume Submitter (VS) Programs
- Exhibit 7.13.3-2
Area Office and Post of Duty Codes
-
Procedures are provided on the screening, controlling, and closing of
cases. EP procedures are provided in IRM 7.13.3.2. -
Instructions for entering applications on EDS will be covered in IRM
7.14, EP/EO Determination System (EDS) Employee Plans User Manual. -
These instructions are for employees in the CSPC’s, Receipt &
Control TE/GE Deposit Unit, EP Determination Centralized Site in Cincinnati
(EP-DCSC) and Area offices. -
Applications entered on the Letter Information Network User Fee System
(LINUS) are controlled on the Batch/Block Tracking System (BBTS). BBTS is
a Service Center case tracking system. The TE/GE Deposit Unit receive the
cases from the BBTS origination clerk.
-
These instructions apply to EP determination case processing and the
personnel who perform these functions. The CSPCs Receipt and Control, specifically,
TE/GE Deposit Unit, perform the initial stages of processing the files.
-
The TE/GE Deposit Unit assigns the DLN and controls determination letter
applications on LINUS, processes the user fees, generates the acknowledgment
notices and prepares input sheets for EDS case establishments. -
For volume submitter (VS) specimen plans and master & prototype
(M&P) plans, the TE/GE Deposit Unit assigns the DLN and enters certain
information regarding the application, such as the DLN, on Headquarters Master
and Prototype Inventory Control System (HQ-MAPICS) as opposed to LINUS. The
TE/GE Deposit Unit processes the user fee for these applications but does
not generate the acknowledgement notice. The acknowledgement notice is generated
off of HQ-MAPICS and mailed by the VS and M&P coordinators located in
Room 5106 of the Cincinnati Federal Office Building. -
The TE/GE Deposit Unit enters the case number assigned by EDS on the
determination letter request when the case is accepted by the Data Transcription
Subsystem (DTS). No other markings may be made on the request or its attachments
during the input and controlling process because such markings may be construed
as inappropriate by the courts if the case reaches the litigation stage. -
The TE/GE Deposit Unit boxes and ships determination letter applications
via shuttle service to the EP-DCSC for technical processing and final determination.
-
Applications requesting EP determination letters are often submitted
with a Power of Attorney (POA) attached. POAs may be submitted on—-
Form 2848, Power of Attorney and Declaration of Representative, (POA),
or -
Form 8821, Tax Information Authorization (TIA).
Note:
Forms 2848 and 8821 are made available
as a convenience and their use is not mandatory. The POA or TIA can take other
forms; the use of technical language is not necessary. -
-
Form 2848, Form 8821 or the document used in lieu of these forms must
contain the following information:-
Name, EIN and address of the taxpayer. (If the EIN is not on the POA or
TIA, obtain the information from the application.) -
Name and address of the designated representative;
-
Specific acts to be performed,
-
Taxpayer’s signature, either the same signature that is on the application
or the signature of an officer of the plan sponsor.
-
-
If any of the items listed in (2)(a) — (d) are missing, process
the POA or TIA as follows:-
If the application is complete but the POA or TIA is invalid, annotate
the POA/TIA, indicating the missing information and include the invalid POA/TIA
in the case file.
-
-
If Form 2848 or 8821 is complete, enter the POA or TIA on the POA screen
on LINUS or DTS.
-
Employees in the TE/GE Processing Units contact with taxpayer will
generally be limited to correspondence generated by the function and telephone
inquiries related to that correspondence. -
Employees should not provide advice and counsel to taxpayers beyond
that required to process their work. Refer any technical questions regarding
the applicable principles of law and questions concerning the appeal rights
of taxpayers to the designated TE/GE technical personnel or Customer Account
Services. -
Tax returns and return information are confidential and may not be disclosed
except as authorized by IRC section 6103. -
Employees are prohibited from disclosing returns or return information
to unauthorized persons. The Internal Revenue Code provides that both civil
and criminal sanctions may be imposed upon employees and others who violate
the disclosure provisions of the Code. -
Contact the disclosure officer regarding any questions, problems or
concerns about disclosure matters.
-
DTS is used to enter determination applications on EDS before shipping
case files to the EP-DCSC. -
Under normal workload conditions, applications should be screened within
10 workdays of receipt. Cases should be processed in receipt order. See IRM
7.13.4, Transcription and Case Establishment for DTS procedures. -
HQ-MAPICS is used to enter both advisory letter applications for volume
submitter (VS) specimen plans and opinion letter applications for master &
prototype (M&P) plans.
-
General instructions are provided for EP transcription workflow and
requirements. Specific instructions for DTS transcription are found in IRM
7.13.4, Transcription and Case Establishment and IRM 7.14, EP/EO Determination
System (EDS) Employee Plans User Manual. -
A request for an EP determination, opinion, or advisory letter is submitted
by an employer/sponsor using a particular application form or, in certain
cases, by filing a written request with the Service. The applications accepted
by EP-DCSC are as follows:-
Form 5300, Application for Determination for Employee Benefit Plan (individually
designed plans). -
Form 5307, Application for Determination for Adopters of Master or Prototype,
or Volume Submitter Plans. -
Form 5309, Application for Determination of Employee Stock Ownership Plan
(ESOP). This form must be submitted as an attachment to Form 5300. -
Form 5310, Application for Determination for Terminating Plan.
-
Form 6406, Short Form Application for Determination for Amendment of Employee
Benefit Plan. -
Group Trust Determination. The request for a determination letter for
a group trust is submitted as a letter but is manually input on DTS as Form
9999. The application should generally be established under the name and EIN
of the parent company; however, if there is any indication that the parent
company has not adopted the plan, seek technical assistance before establishing
the case on DTS. -
Volume Submitter (VS) Specimen Plans and Master & Prototype (M&P)
Plans. The request for an advisory letter for a volume submitter plan and
the request for an opinion letter for a M&P plan will be submitted on
Form 4461 (or Form 4461–A, or Form 4461–B) or, in the past for
a VS plan, as a letter request but it is always input on HQ-MAPICS as Form
4461 (or 4461–A, or Form 4461-B).
Note:
Form 5310–A, Notice of Merger or
Consolidation, Spinoff, or Transfer of Plan Assets or Liabilities, Notice
of Qualified Separate Lines of Business, is not an application for a determination
letter but is screened on LINUS and DTS. -
-
Applications are accepted as is or forwarded to the Lead EP Technical
Screener at the EP-DCSC. (IRS, FOB Room 5106, Cincinnati, OH 45202). -
However, without basic information (Employer name, address, EIN, plan
name, and plan number), the application cannot be controlled and a determination
letter cannot be issued until the application is perfected.-
Attempt to locate the missing information on attachments to the application,
the envelop or through research on EDS. If the missing information is located,
enter it on the appropriate DTS screen. -
If more than one plan (i.e., profit sharing and money purchase) is submitted
with one application, only one can be processed. If the user fee clerk or
transcriber recognizes this situation, seek the advice of a Lead EP Technical
Screener in the EP-DCSC.
-
-
These instructions are for the employees who transcribes the application
information. The technical requirements are met if all appropriate line items
on the application (or an attachment in the submission package) are completed
or if the EP-DCSC has provided guidance on how to input the application if
the information is missing. -
Accept all applications even though the submissions do not include some
of the attachments required by the DTS.-
Volume submitter specimen plans received with letter requests (in lieu
of Form 4461 series) are entered on HQ-MAPICS as Form 4461.
-
-
The following are requirements or processing decisions which cannot
be determined by DTS programming. Use these instructions in handling these
issues. They are listed in the order in which encountered in the transcription
process.
-
The EP-DCSC will locally determine when to reject reproductions of applications
from practitioners who submit large volumes of applications.
-
Any blank items on the application can be filled in on DTS based on
the attachments submitted with the application.
-
If a determination letter was previously issued for the plan, the applicant
must either include a copy of the latest determination letter with the application
or, if the determination letter is not available, include an explanation in
the cover letter. -
DTS automatically identifies “determination letter”
as
a required attachment (on the DTS Attachment Screen) when an application is
entered as an amendment request. -
If the application does not indicate an answer to question 3(a) the
transcriber should input a number 1 and accept the application.
-
These forms are now being processed in the Cincinnati, OH. office. Although
listed on the Attachment Screen, this (Parts II, Ill and IV of Forms 4461/4461-A/4461-B)
is not an attachment but an indication of which part(s) of the application
must be completed.-
When possible, check inside the application to complete the application
form in order for transcription to DTS to be complete.
-
-
Multiple employer plans submitted on Form 5300 may include a partially
completed Form 5300 for each other employer participating in the plan.-
An entity will automatically be established on the EPMF for the employer
whose name appears on the fully completed Form 5300, if none exists. -
If any questions arise the TE/GE Deposit Unit should contact the Lead
EP Technical Screener to determine if any of the employers reflected on the
partially completed Forms 5300 attached to the submission is required to file
a separate return. -
For those employers required to file separate returns, establish the entity
if it does not already appear on EPMF. To complete Form 9308, EPMF Plan Data
Change Request, see Handbook 7.3.3 to establish the entities. See also IRM
7.13.5, Letter Generation for instructions on preparing determination letters
for these employers.
-
-
Form 5310, Interested Party Notification, are screened by DTS to determine
if interested parties have been properly notified that the sponsor (employer)
is requesting a determination letter.-
DTS should always be input as a “yes”
answer. -
The applicant will be requested to send in a copy of the interested party
notice when the application is resubmitted but DTS does not screen for the
notice. -
The Technical Screeners or the Specialists will be responsible for securing
the copy of the notice if it is not attached to the submission or if it is
deficient.
-
-
Group (Pool) Trust Determination Letter Requests are requested by letter;
there is no application developed for this purpose. These requests are established
on the Inventory Control Subsystem (ICS) through DTS but they are not screened
for completeness. Only the Initial Screen, the Name Screen and the POA Screen
are accessible for group trust requests. Specific instructions for establishing
group trust requests are as follows:-
Enter 9999 for the Form number.
-
Leave the form revision item blank.
-
Enter the control date.
-
If no EIN is present, enter 99-9999999 to generate a “dummy
”
EIN.
-
-
Form 5310–A Processing Instructions is filed to give notice of
a merger or consolidation, spinoff, or transfer assets or liabilities, or
to give notice that the employer wishes to be treated as operating qualified
separate lines of business (QSLOB).-
Complete the DTS screens based on the data submitted on the Form 5310–A
to establish a record of receipt. -
If the reason for filing, at the top of page 1, is not completed and the
reason can not be determined from the information submitted, seek the assistance
of the Lead Technical Screener. -
These cases are automatically updated to a closing status (”
08″
) on EDS. They are not part of the determination letter workload
and generally require no further action.
-
-
VS and M&P plans are plans containing all necessary qualification
requirements submitted by sponsors/practitioners for pre-approval by the Service
and subsequent sale to employers. The employer adopts the plan and, if a VS
plan, modifies it (to the extent allowed under the VS Program) for his/her
specific needs and submits Form 5307 for approval of the modified plan. Under
the Service’s current reliance rules contained in Rev. Proc. 2005-6,
an employer satisfying certain requirements (including adopting the approved
M&P plan or approved VS plan on a word-for-word identical basis) can rely
on the opinion or advisory letter issued to the M&P plan or VS plan for
most qualification requirements in an equivalent manner to a determination
letter; however, once the employer makes any modifications to the M&P
plan or VS plan, a determination letter will need to be filed to obtain any
type of Service reliance.Note:
Form 5300 instead of Form 5307 will be required
to obtain a determination letter for an employer’s adoption of a M&P
plan where the employer has made any modifications to it. Conversely, with
an employer’s adoption of a VS plan, the Form 5300 will be required
only where the employer modifications are determined by the Service to be
substantial. -
There are two categories of specimen-prototype plans:
-
master or prototype (M&P), and
-
volume submitter.
See Exhibit 7.13.3–1, EP Master & Prototype
(M&P) and Volume Submitter (VS) Programs.
-
-
M&P plans are established, controlled, and approved by the Cincinnati,
OH Office through use of the HQ-MAPICS system and, when approved, opinion
letters are issued. -
The Cincinnati Office also receives and approves “mass
submitter”
prototype plans. The EP-DCSC receives and approves Forms
4461–B of sponsors who adopt the approved mass submitter plans. After
EP-DCSC issues the opinion letter, the employer who adopts the sponsors plan
requests a determination letter by submitting Form 5307.-
Forms 4461 and 4461–A are assigned to groups for analysis by the
coordinators of the VS and M&P Programs. -
Forms 4461–B that are clerically complete need no further review.
These cases automatically transfer to inventory. They are not considered part
of the technical workload and should be closed as soon as possible by the
coordinators of the VS and M&P Programs.
-
-
VS Practitioners submit volume submitter (VS) specimen plans to EP-DCSC
for approval. VS plans are established, controlled, and approved by the Cincinnati,
OH Office through use of the HQ-MAPICS system and, when approved, advisory
letters are issued. The EP-DCSC issues an advisory letter for each approved
volume submitter specimen plan. The practitioner sells the plans to employers
for adoption and use. -
Practitioners who sponsor VS plans and sponsoring organizations who
sponsor M&P plans are instructed to submit these plans for pre-approval
directly to the VS & M&P coordinators in the EP-DCSC. The VS and M&P
coordinators are located in Room 5106 of the Cincinnati Federal Office Building.
-
Cincinnati will forward application that cannot be worked in EP-DCSC
to other Areas based on work plan projections. -
When applications are transferred to Areas for processing:
-
Update the inventory control record to status code 58 (Workload Transfer)
for Determination cases or status code 60 for Screening cases. -
Use Form 3210, Document Transmittal, to send the application.
-
The receiving Area will update the status of cases in unassigned inventory
for the Determination cases on EDS to 75 within 1 working day. Screening cases
will remain in status code 60. -
When assigned, the Area will update the status of cases on EDS to 52 (Assign
to Specialist) or 62 (Screening). -
The transferee Area will update ICS records and process as normal, e.g.,
if the case is ready for closing, a manager will approve the record for closing. -
After processing, the Area offices will prepare Form 3210 to return the
completed case to EP-DCSC. -
The EP-DCSC will ship case files to the Federal Records Center.
-
-
Establish an administrative case file for each complete determination
letter application received. This file is comprised of the—-
Application
-
Supporting papers, and
-
Other materials outlined in the following sections.
-
-
The contents of the administrative case file are divided into two basic
categories:-
Information which may be open to public inspection (under IRC section
6103 and 6104) on the right side, and -
information not open to public inspection on the left side.
-
-
Public disclosure is provided for applications filed for documents issued
after September 2, 1974. -
Exercise caution to insure that those items not open to public inspection
as identified in IRC section 6104(a)(1)(C) and (D) are not disclosed.Example:
This includes information from which the compensation of
any individual may be ascertained and certain information relating to trade
secrets, patents, processes, or national defense.Note:
If the plan has less than 26 participants, only properly identified plan participants
may inspect the plan file. Refer request to TE/GE Customer Account Services.
-
The right side of the file contains all information open to public inspection.
Assemble the information in the file, from top to bottom, as follows:-
Most recent Case Closing Sheet (Form 8671)
-
Index of administrative case file, if applicable This will be prepared
in every case where a proposed adverse determination letter is issued and
will index those items identified in section 601.201(o)(9) of the Statement
of Procedural Rules (26 CFR Part 601) as comprising the administrative record. -
Most recent Power of Attorney
-
Most recent determination letter
-
Opinion, notification or advisory letter
-
Most recent application form
-
Written correspondence between the Service and the applicant in respect
to the request for determination (e.g., as “10 day”
letter,
withdrawal letter, proposed adverse determination letter, etc.). -
Other documents issued to the applicant by the Service dealing with qualification
-
Written comments by interested parties. (Informant letters cannot be disclosed
and should not be filed on the right side of the file.) -
Correspondence with interested parties, with respect to the written comments
referred to in g., above. -
Amendments on initial qualification.
-
Plan and/or group annuity contract.
-
Trust instrument.
-
Supplemental data filed in support of the application. (This includes
statistical analysis such as turnover data, coverage or allocation schedules,
balance sheets, and receipts and disbursements statements). -
Miscellaneous materials and correspondence with regard to the application,
e.g., specimen copies of individual life insurance contracts and formal announcements
to employees. -
Form 5446, Public Inspection Record.
-
-
Arrange each category of material listed above that includes multiple
items chronologically, in descending order. -
Form 5446 is used to record the instances when members of the public
have examined the case file, as permitted by applicable disclosure regulations.
-
The left side of the case file contains, in descending order, all information
not open to public inspection. Such information includes:-
Form 8326, Transmittal Sheet and/or Form(s) 5464, Case Chronology Record
(if used). -
Form 5621, Technical Analysis Control Sheet.
-
A copy of the official report when the Service makes an investigation
regarding the facts as submitted by the applicant or in comments submitted
by interested parties. -
Workpapers, including reviewers memoranda and responses thereto, and any
completed Alert Guideline Worksheets (or locally developed worksheets). -
Reviewer’s memorandum and other Service memoranda or reports, including
Form 5402, Appeals Transmittal Memorandum and Support Statement. -
Other miscellaneous materials not disclosable as identified by disclosure
regulations, and IRM 11.3.10, Disclosure of Official Information – Employee
Plans Information. These materials include pertinent information from pre-ERISA
plan files, e.g., the determination letter, worksheets and application.
-
-
Under normal workload conditions, EP applications should be processed
within 6 workdays of receipts. -
In general, requests will be processed in the order received.
-
Forms 5310 and Forms 5300 with type request 6 (Termination of a collectively
bargained multi-employer or multiple employer plan covered by PBGC insurance). -
Applications submitted by the Resolution Trust Corporation (RTC); and
-
Any other application for which the Area Manager of the EP-DCSC or his/her
delegate indicates expeditious treatment is warranted.
-
The Control Date which must be manually entered on DTS is an eight (8)
digit entry written in the format MMDDYYYY, with all digits being numerical.Example:
The date July 3, 1997 will be entered as 07031997.
Note:
Exercise extreme care
in entering this item. This date is used to determine the age of the inventory
and to start the running of the declaratory judgment period; it cannot be
corrected by the screener after exiting the screen. -
The control date is determined as follows:
-
If the application mailed to the Service is addressed proper, enter the
postmark date. If the postmark is illegible, enter the Service Center received
date. However, the control date may never be earlier than the date the application
was signed or the date of the cover letter (if the cover letter date is later
than the date the application was signed). -
If the application was sent by certified or registered mail, enter the
date of certification or registration. -
If the application was delivered to the Service by other than mail, enter
the date of actual receipt as evidenced by the date stamp. -
The control date for an application which was rejected as incomplete is
the date the completed application was postmarked or received, if not mailed.
-
-
EDS will assign a case number to each application entered. The first
2 digits of the case number will indicate the location of the plan sponsor.
See Exhibit 7.13.3–2 for a list of the numeric codes and corresponding
locations.
-
DTS automatically updates the status of EDS records for completed cases
to status 50 (area office receipt) on the EDS ICS. -
Forward all applications to the EP-DCSC.
-
Forward VS plans and the M&P plans to the VS & M&P coordinators
located in Room 5106 in the Cincinnati Federal Office Building.
-
In general, the letter for EP incomplete application is Letter 1012
(DO/CG). Letter Requesting Missing Data/Information. -
All application are accepted. The Technical Screener will determine
if an application will be return to applicant. -
If a valid power of attorney is on file and specifies that correspondence
is to be sent to the representative, the incomplete application should be
returned directly to the authorized representative. A courtesy copy of Letter
1012 (DO/CG) should be sent to the applicant. -
If a valid power of attorney is on file but does not indicate that correspondence
may be sent to the representative, the incomplete application will be returned
to the applicant with a courtesy copy of Letter 1012 (DO/CG) to the representative. -
If no valid power of attorney is on file, the incomplete application
will be sent to the applicant. -
If Letter 1012 (DO/CG) with the incomplete application is returned as
undeliverable, an attempt should be made to locate a new address by researching
EDS, IDRS, or the administrative file (if any).
-
The groups should forward mandatory review cases directly to the Quality
Assurance Staff in EP-DCSC. Inform the manager immediately if any mandatory
review cases are misdirected to the TE/GE Processing function.Note:
It is very important that the ICS record be researched and, if necessary,
correction made. This may require the assistance of the CS-SP Coordinator. -
The following cases are mandatory review cases:
-
Foreign Plans,
-
VS plans and M&P plans (2nd level review is done at group level, as
opposed to Quality Assurance), -
Proposed adverse determination letters,
-
Cases prepared for closing for which interested party comments have been
received; -
Termination cases with reversions of more than $5,000,000, termination
cases with over 1000 participants and 2% of all other terminations; -
Technical advice cases (see Rev. Proc. 2005-5, 2005–1 I.R.B 170
(revised annually) for a list of issues on which technical advice must be
requested) and, -
Cases identified for mandatory review by the group manager.
-
-
If the TE/GE Processing function is responsible for mailing closing
letters, ensure that the letters are date-stamped and signed before mailing
and that a copy of the letter sent to the employer, the authorized representative
and, if applicable, interested parties, are placed in the administrative file. -
All final adverse determination letters (Proposed Adverse Letter 1724
(DO/CG) and Letter 2052 (DO/CG)) must be sent to the applicant by certified
or registered mail after approval by Counsel. In addition, copies of these
final adverse letters issued by the Appeals Office must be sent to: Division
of Plan Standards, Room N 4508, U. S. Department of Labor, 100 Constitution
Avenue, N.W., Washington D. C. 20216.
-
Cases are closed on ICS in the groups, Qualify Assurance Staff or Technical
Screening Staff.-
Local procedures will provide where completed cases will be stored pending
the 60 day user fee holding period. -
Local procedures will also indicate who will date-stamp and mail letters
for completed cases.
-
-
Types of cases transmitted to Quality Assurance Staff directly from
the group(s), instead of through TE/GE Processing Unit.-
Mandatory review cases
-
TE/GE Quality Measurement System (TEQMS). These cases are computer-selected
when they are approved on the Manager Approval Screen in ICS.
-
-
Before transferring cases selected for TEQMS review to the Quality Assurance
Staff, place the TEQMS tally sheet in the case file or otherwise indicate
the case is a TEQMS case.
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| Area Office and Post of Duty |
|
| Northeast (01) | Brooklyn (Area Manager) Maine, New Hampshire, Vermont, New Jersey, Ohio, New York, Connecticut, Rhode Island, Massachusetts |
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