In September, the IRS issued Rev. Proc. 2018-52 updating the IRS correction program, i.e., Employee Plans Compliance Resolution System ("EPCRS"). EPCRS allows retirement plan sponsors to correct compliance failures that may adversely affect the tax-qualified status of a plan. The primary purpose of the new Revenue Procedure is to update how plan sponsors may submit Voluntary Correction Program ("VCP") applications to the IRS.

Effective April 1, 2019, the IRS will no longer accept paper VCP submissions or paper check user fee payments. Specifically, the updated procedures mandate plan sponsors (or their authorized representatives) to use the www.pay.gov website to file VCP submissions and to pay applicable user fees. The guidance provides for a transition period from January 1, 2019, through March 31, 2019, during which plan sponsors may elect to submit VCP submissions either through the website or by paper.

The updated procedures instruct applicants to complete Form 8950 using the www.pay.gov website. All of the items related to the submission must be combined into a single PDF file and uploaded to the website. If the documents exceed a 15MB limit, whichever documents exceed such limit must be faxed to the IRS separately. Applicants are also instructed to pay the applicable user fee through the www.pay.gov website. Payment confirmation, including a tracking identification number, will be generated by the www.pay.gov website and may be emailed to applicant in lieu of a written acknowledgement.

Revenue Procedure 2018-52 also makes a few other minor substantive changes, including revising references to reflect changes to the IRS Pre-approved Plan program and clarifying that the IRS Letter Forwarding Program is no longer available to search for participants and beneficiaries to whom benefits may be due from a plan.

The IRS requested comments on other issues for future updates of EPCRS, noting that it is considering changes relating to the recoupment of overpayments and an expansion of the Self-Correction Program.

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