Employee Plans Compliance Resolution System (EPCRS)
Again in an effort to give plans an opportunity to correct mistakes, the government established an Employee Plans Compliance Resolution System (EPCRS). This program has been recently modified.
Any plan anticipating need to avail itself of the program, should review this guidance (Revenue Procedure 2013-12) carefully. While it will take effect April 1, 2013, plans can begin using the new forms (see IRS’ Correcting Plan Errors – Fill-in VCP Submission Documents) and procedures immediately. Some of the corrections that are highlighted in the new program include:
- Self-Correction Program (“SCP”)
- Voluntary Correction Program (“VCP”), and
- Audit Closing Agreement Program (“Audit CAP”).
The guidance includes a chart of changes to the EPCRS program.
The information contained in this Benefit Beat is not intended to be legal, accounting, or other professional advice, nor are these comments directed to specific situations.
As required by U.S. Treasury rules, we inform you that, unless expressly stated otherwise, any U.S. federal tax advice contained in this Benefit Beat is not intended or written to be used, and cannot be used, by any person for the purpose of avoiding any penalties that may be imposed by the Internal Revenue Service.