SECTION 2. WHAT

CHANGES HAVE BEEN MADE TO THIS PROCEDURE?

In general .01 This revenue procedure is a general update of Rev. Proc. 99–6, 1999–1 I.R.B. 187, which contains the Service’s general procedures for employee plans determination letter requests. Most of the changes to Rev. Proc. 99–6 involve minor revisions, such as updating citations to other revenue procedures.

Tax Exempt and Government .02 The procedure has been revised to reflect the reorganization of the Service and the Entities Division creation of the new Tax Exempt and Government Entities Division (TE/GE). Throughout the procedure, titles have been changed to reflect the realignment of responsibilities formerly under the Assistant Commissioner (Employee Plans and Exempt Organizations) to the Commissioner, TE/GE.

Multiple employer plans .03 Section 10.07 of Rev. Proc. 99–6 provided that employers could not continue to rely on a favorable determination letter for a multiple employer plan after other employers joined the plan. Section 10.07 has been revised to allow employers to continue to rely on a favorable determination letter for a multiple employer plan after another employer joins the plan provided an application for a new determination letter is submitted by the last day of the plan year beginning after the new employer joins the plan. Coverage information needs to be provided only for the new employer.

Section 401(h) and §420 .04 Section 16 has been modified to clarify the procedures for requesting determination letters on plan language that permits, pursuant to § 420, the transfer of assets in a defined benefit plan to a health benefit account described in § 401(h). Section 16 and the checklist in the Appendix of this revenue procedure have also been modified to reflect the amendments to § 420 that were made by § 535 of the Tax Relief Extension Act of 1999, Pub. L. 106 – 170 (TREA ‘99), which apply, generally, to qualified transfers occurring after December 17, 1999. Finally, section 16 has been modified to provide that a determination letter that considers whether the requirements of § 401(h) are satisfied in a plan will be issued only if the plan sponsor requests such consideration in a cover letter submitted with the application and indicates in the cover letter the location of plan provisions that satisfy the requirements of § 401(h).