SECTION 6. TVC PROGRAM

.01 In general. TVC generally allows employers to submit an application requesting correction of one or more Operational Failures, Demographic Failures, or Eligibility Failures. Under TVC, the employer pays a compliance correction fee, as described in section 8 below, and corrects the failures identified in accordance with the terms of a closing agreement entered into by the Service and the employer. Payment of the compliance correction fee is generally required at the time the closing agreement is signed. Depending on the nature of the failure and the plan’s existing administrative procedures, the closing agreement may be conditioned on the implementation of stated administrative procedures.

.02 TVC requirements. The provisions of Rev. Proc. 98–22 relating to Walk-in

CAP generally apply to TVC except that TVC applies to Operational Failures, Demographic Failures, and Eligibility Failures in a 403(b) Plan. In addition, there is no requirement that the employer obtain a private letter ruling from the Service covering its 403(b) Plan. Section 4.03 of Rev. Proc. 98–22 does not apply.

.03 Eligibility for TVC. TVC is not available if the 403(b) Plan or the employer is Under Examination.

.04 Failures covered by TVC. TVC is expanded to cover all Operational Failures, Demographic Failures, and Eligibility Failures that are within the jurisdiction of the EP/EO Division of the Key District Office, including Plans of Ineligible Employers. TVC is available to correct egregious failures; however, these failures are subject to the fee described in section 8.06 below. TVC is not available with respect to failures relating to the diversion or misuse of plan assets.

.05 Correction of Excess Amounts. Failures related to Excess Amounts may be corrected under TVC in the manner described in paragraph (1) or (2) of section 4.02 above, and are subject to the fee described in section 8.02 or 8.03, respectively.