SECTION 1. PURPOSE

.01 This revenue procedure modifies Rev. Proc. 94–62, 1994–2 C.B. 778, which describes the Voluntary Compliance Resolution (VCR) Program, and Rev. Proc. 94–16, 1994–1 C.B. 576, which describes the Walk-in Closing Agreement Program (Walk-in CAP), to change the definition of when a plan is ineligible for those programs because it is under examination. The modification conforms the definition to that set forth in Rev. Proc. 95–24, 1995–1 C.B. 694, which describes the Tax Sheltered Annuity Voluntary Correction (TVC) Program.

.02 This revenue procedure also modifies Rev. Proc. 94–62 to provide that a plan that is submitted under the VCR program on or after January 1, 1996, will not be considered ineligible for the VCR program solely by reason of its not having received a favorable determination letter that considers the Tax Reform Act of 1986 (TRA ’86) if certain conditions have been met at the time of the plan’s submission under the VCR program. These conditions require that the plan have received a favorable letter that considers the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), the Deficit Reduction Act of 1984 (DEFRA), and the Retirement Equity Act of 1984 (REA), and, at the time of its VCR submission, have been submitted within the plan’s § 401(b) remedial amendment period for a determination letter that considers TRA ’86.

Those plans for which the § 401(b) remedial amendment period has not expired (including adopters of certain master and prototype plans, regional prototype plans, volume submitter plans, governmental plans, and plans maintained by tax-exempt organizations), may be submitted for consideration under the VCR program on or after January 1, 1996, if the plan is the subject of a favorable letter that considers TEFRA, DEFRA, and REA.