The IRS has updated the procedures for determination letter requests. The new procedures are outlined in Revenue Procedure (Rev. Proc.) 2023-04.
Rev. Proc. 2023-04 is a general update of Rev. Proc. 2022-4, published in Internal Revenue Bulletin 2022-01, which sets forth:
- general information about the types of advice provided by the IRS Employee Plans Office of Rulings and Agreements;
- general procedures for letter ruling and determination letter requests;
- specific procedures for determination letter requests; and
- user fees associated with advice requested from Employee Plans Rulings and Agreements.
In addition to minor non-substantive changes, including changes to dates, cross references and citations to other revenue procedures, the following substantive changes have been made to Rev. Proc. 2022-4.
Sections 6, 8, 9, 10, 11, 19, and 20 and Appendix B are revised to provide the procedures for obtaining a determination letter regarding a 403(b) individually designed plan, beginning June 1, 2023. Appendix A adds user fees for these submissions.
Sections 6.02 and 16 are revised to provide that Form 5307, Application for Determination for Adopters of Modified Nonstandardized Pre-Approved Plans and Form 5316, Application for Group or Pooled Trust Ruling, may be submitted electronically beginning June 1, 2023, and must be submitted electronically beginning July 1, 2023, including payment of the user fee.
Sections 3 and 31 and Appendix A reflect the temporary suspension of the opinion letter program for prototype IRAs (traditional, Roth and SIMPLE IRAs), SEPs (including salary reduction SEPs (SARSEPs)), and SIMPLE IRA plans.
Section 9.02 reflects changes to the scope of determination letters.
Appendix A has been modified to increase certain user fees.
A new Appendix G has been added; it provides a checklist for applications for nonbank trustee approval letters.
Rev. Proc. 2023-04 begins at page 162 of the Internal Revenue Bulletin of Jan. 3, 2023.
- Log in to post comments