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The Wagner Law Group

The Wagner Law Group is a nationally recognized practice in the areas of ERISA and employee benefits, which includes the distinct areas of Fiduciary Compliance, Retirement Plans, ESOPs, Executive Compensation & Nonqualified Plans, Welfare Benefit Plans and PBGC, as well as Employment, Labor & Human Resources, Investment Management, Trusts & Estates, Litigation, Immigration, Family, Municipal, Corporate & Commercial and Real Estate Law.

 

Established in 1996, The Wagner Law Group is dedicated to the highest standards of integrity, excellence and thought leadership and is considered to be amongst the nation's premier ERISA and employee benefits law firms. The firm has eight offices across the country, providing unparalleled legal advice to its clients, including large, small and nonprofit corporations as well as individuals and government entities worldwide. The Wagner Law Group's 35 attorneys, senior benefits consultant and seven paralegals combine many years of experience in their fields of practice with a variety of backgrounds. Nine of the attorneys are AV-rated by Martindale-Hubbell and seven are Fellows of the American College of Employee Benefits Counsel, an invitation-only organization of nationally recognized employee benefits lawyers.  Seven of the firm's attorneys have been named to the prestigious Super Lawyers list for 2018, which highlights outstanding lawyers based on a rigorous selection process. The Wagner Law Group is certified as a woman-owned and operated business by the Women's Business Enterprise National Council.

 

 

 

 

 

 

 

Contact Info

The Wagner Law Group

 

  Integrity | Excellence

  

Boston 

Tel: (617) 357-5200 

Fax: (617) 357-5250 

99 Summer Street 

13th Floor

Boston, MA 02110

 

Washington, D.C.

Tel: (202) 969-2800

 

Fax: (202) 969-2568

 800 Connecticut Avenue, N.W.

Suite 810

Washington, D.C. 20006

 

Chicago

Tel: (847) 990-9034

Fax: (847) 557-1312

190 South LaSalle Street

Suite 2100

Chicago, IL 60603

 

  

Palm Beach Gardens 

Tel: (561) 293-3590
Fax: (561) 293-3591
7108 Fairway Drive
Suite 125
Palm Beach Gardens, FL 33418

   

Tampa

Tel: (813) 603-2959

Fax: (813) 603-2961

101 East Kennedy Boulevard

Suite 2140
Tampa, FL  33602 

  

San Francisco

Tel: (415) 625-0002

Fax: (415) 358-8300

300 Montgomery Street

Suite 600

San Francisco, CA 94104

  

St. Louis

Tel: (314) 236-0065

Fax: (314) 236-5743
25 W. Moody Avenue
St. Louis, MO  63119

 

Lincoln

Tel: (617) 532-8080

Fax: (617) 532-9090

55 Old Bedford Road

Lincoln, MA 01773

 

 

www.wagnerlawgroup.com

 

 

 

October 3, 2018

 

IRS Updates Correction Program for Retirement Plans

 

 

 

 

In 2002, the Internal Revenue Service (IRS) adopted a program - the Employee Plans Compliance Resolution System (EPCRS) - to enable sponsors of employee benefit pension plans (primarily tax-qualified plans) to self-identify and correct various types of operational, document and other errors. EPCRS offers three programs for correcting plan errors, each available under specific circumstances: (i) Self-Correction Program (SCP), (ii) Voluntary Correction Program (VCP) through a submission to IRS, and (iii) Audit Closing Agreement Program (Audit CAP). Since its inception the IRS has updated EPCRS from time to time. On September 28, 2018, with the release of Revenue Procedure 2018-52, the IRS modified and superseded the most recent prior consolidated iteration of EPCRS, which was set forth in Revenue Procedure 2016-51. 

 

The new EPCRS is generally effective January 1, 2019. The updates therein are limited, but the most important modification is to establish new online VCP submission procedures. This means that beginning on April 1, 2019, applicants will no longer be permitted to file paper VCP submissions. Plan sponsors will be required to use the www.pay.gov website to file VCP submissions and pay applicable user fees. Under a transition rule, between January 1, 2019 and March 31, 2019, applicants will have the option of either mailing under the procedures set forth in Rev. Proc. 2016-51, or using the www.pay.gov website. While the same type of documents that are submitted under the current program will continue to be required, there are procedural differences under the new electronic filing procedure:

 

  • An applicant must use the www.pay.gov website to create a pay.gov account. This account will be used when filing a VCP submission and the appropriate user fees.
  • After a pay.gov account has been established, the applicant must complete Form 8950 using the www.pay.gov website.
  • Documents relating to the VCP submission, including a description of the failures, must be converted into a single PDF document and then uploaded to the www.pay.gov website. However, there is a 15 MB size limit and there are special instructions for VCP submissions in excess of that limit, which will likely apply to many submissions.
  • New procedures are established relating to the payment of user fees, including the generation of a payment confirmation.
  • Specific instructions are provided on how to designate an authorized representative using form 2848.

 

We note that the new EPCRS does not address concerns that VCP user fees, which were recently increased effective January 2, 2018, are a barrier to small employers from taking advantage of the program, who may choose to utilize the SCP component of EPCRS instead.

 

 

Other modifications were made to reflect changes in IRS programs, such as the Pre-Approved Plan Program for Qualified Plans and Pre-Approved 403(b) plans. A number of technical changes and clarifications were also made.

 

While there are no substantive changes to the prior program, the IRS indicated it is in the process of developing changes with respect to the correction of overpayments rules, and is reviewing comments on the manner in which SCP might be expanded.

 

 

 

This Newsletter is protected by copyright. Material appearing herein may be reproduced with appropriate credit.

 

This Newsletter is provided for information purposes by The Wagner Law Group to clients and others who may be interested in the subject matter, and may not be relied upon as specific legal advice.  This material is not to be construed as legal advice or legal opinions on specific facts. Under the Rules of the Supreme Judicial Court of Massachusetts, this material may be considered advertising.