Exception:

If an employee plan, not administered by a qualified custodian bank, provides an IRS Determination letter reject the application and issue Letter 3436 as outlined in (14) above.

IRS Determination Letter or Revenue Ruling letter used as proof of exemption from taxation and filing, must specifically state that the organization is exempt from taxation and filing.

If

Then

1. The requestor submits a determination letter or Revenue Ruling letter that states the organization is exempt from taxation and from filing

Issue certification.

2. The requestor submits a determination letter, that simply states the organization is exempt from taxation

Check IDRS to determine filing status.

3. IDRS indicates applicant is exempt from filing

Issue certification.

4. IDRS indicates the applicant is liable for the Form 5500 and a return was not filed

Suspend the case; issue Letter 3444.

5. The plan cannot be verified

It cannot be certified.

When all requirements are met and verification that the organization is a valid employee plan, certify the applicant as an organization exempt from U.S. taxation under the appropriate IRC section.

When all requirements are not met, correspond with the applicant using Letter 3431.

An employee plan sponsor/employer is not required in all instances to apply for an Approval or Determination letter ruling.

This type of requestor must file a return even though it is not required.

If the sponsor/employer does not apply for an Approval or Determination letter ruling or file a tax return, the plan will not be found on any of our data bases.

If the plan cannot be verified, it cannot be certified.

Issue the Letter 3431 to the Employee Benefit Plan Sponsor/Employer.

Any employee plan applicant that has had its application declined because it is newly formed and has not filed a Form 5500 (see (16) above), but believes it is entitled to treaty benefits under a specific treaty article, must follow Rev. Proc. 2015-40 to request Competent Authority help.

Employee plan applications declined for reason other than (14) above that believe they are entitled to U.S. Residency Certification, must submit a copy of the completed Form 8802, attach a detailed explanation, including documentary evidence, as to why it believes it is entitled to certification. Once you receive the application, place the case in status 702 and forward to P&A.