IRS Now Accepting Determination Letter Applications

The IRS is accepting applications for determination letters under certain circumstances. It began doing so on Sept. 1.

Determination letter applications may be submitted for statutory hybrid plans; specifically, the IRS will accept a determination letter application for individually designed statutory hybrid plans, as defined in Treas. Reg. §1.411(a)(13)-1(d)(5). But the IRS will not be doing so forever: under Revenue Procedure (Rev. Proc.) 2019-20, Issued on May 1, it will accept these applications for just one year, Sept. 1, 2019 – Aug. 31, 2020.

Further, under Rev. Proc. 2019-20, any remedial amendment period that is open as of Sept. 1, 2019 is extended to Aug. 31, 2020 as well. Treas. Reg. §1.401(b)-1(e)(3), which provides that the submission of a determination letter application extends the remedial amendment period until the expiration of 91 days after the date a determination letter is issued, continues to apply.

The IRS also began accepting determination letter applications concerning plan mergers beginning Sept. 1. But unlike the acceptance of such letters for statutory hybrid plans, IRS acceptance of determination letter applications concerning plan mergers will continue beyond Aug. 31, 2020.