SECTION 2. WHAT CHANGES

HAVE BEEN MADE TO THIS PROCEDURE?

In general .01 This revenue procedure is a general update of Rev. Proc. 2001–6, 2001–1 I.R.B. 194, which contains the Service’s general procedures for employee plans determination letter requests. Most of the changes to Rev. Proc. 2001–6 involve minor revisions, such as updating citations to other revenue procedures.

Announcement 2001–77 .02 In Announcement 2001–77, the Service described several changes to simplify the employee plans determination letter application procedures. One of the changes gives plan sponsors the flexibility to request a determination letter that considers either the form of the plan only or both the form of the plan and compliance with the minimum coverage and nondiscrimination requirements. A second change enables adopters of nonstandardized master and prototype (M&P) plans and volume submitter specimen plans to rely on the M&P or volume submitter specimen plan’s favorable opinion or advisory letter without having to request individual determination letters. A third change enables employers that maintain multiple employer plans to rely on the favorable determination letter issued for the plan without having to request individual determination letters. Finally, Announcement 2001–77 provides certain transition rules that allow plan sponsors to file determination letter applications using the prior revision of the determination letter application forms. Announcement 2001–122, 2001–51 I.R.B. 604, extended these transition rules through March 31, 2002. The changes described in Announcement 2001–77 and Announcement 2001–155 have been incorporated in this revenue procedure.

EGTRRA and CRA .03 The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), Pub. L. 107–16, which was enacted on June 7, 2001, includes numerous changes to the qualified plan rules. Almost all of these changes are effective in years beginning after December 31, 2001. While many of the changes are not mandatory, a plan sponsor that chooses to implement an optional provision of EGTRRA will have to amend its plan to conform plan provisions to plan operation. Notice 2001–42, 2001–30 I.R.B. 70, provides that good faith plan amendments for EGTRRA must be adopted no later than the later of (1) the end of the plan year in which the amendments are required to be, or are optionally, put into effect or (2) the end of the GUST ¹ remedial amendment period. Notice 2001–57, 2001–38 I.R.B. 279 provides sample amendments to assist plan sponsors in meeting this requirement. Notice 2001–42 also provides that until further notice determination, opinion and advisory letters will not consider and may not be relied on with respect to the EGTRRA changes. However, an employer’s ability to rely on a favorable determination, opinion or advisory letter will not be adversely affected by the timely adoption of good faith EGTRRA plan amendments. Determination letters consider and may be relied on with respect to the changes to the qualification requirements made by the Community Renewal Tax Relief Act of 2000 (CRA), Pub. L. 106–554. Section 3 of this revenue procedure has been modified to incorporate this provision of Notice 2001–42. Section 3 has also been modified to provide that determination letters consider and may be relied on with respect to the changes to the qualification requirements made by CRA.

Evidence of eligibility for extended remedial amendment period under section 19 of Rev. Proc. 2000–20

.04 Section 6 has been modified to require the submission of appropriate evidence of eligibility for the extension of the remedial amendment period under section 19 of Rev.

1 The term “GUST” refers to the following:

• the Uruguay Round Agreements Act, Pub. L. 103–465;

• the Uniformed Services Employment and Reemployment Rights Act of 1994, Pub. L. 103–353;

• the Small Business Job Protection Act of 1996, Pub. L. 104–188;

• the Taxpayer Relief Act of 1997, Pub. L. 105–34;

• the Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105–206; and

• the Community Renewal Tax Relief Act of 2000, Pub. L. 106–554.

2002–1 I.R.B 209 January 7, 2002

Clarification of the definition of a volume submitter plan

Proc. 2000–20 in cases where the determination letter application is filed after the time the period would otherwise expire.

.05 Section 9.03 is clarified to reflect that the definition of a volume submitter plan does not include a cash balance or similar defined benefit plan.

Notice to interested parties .06 Proposed amendments to § 1.7476–2 of the Income Tax Regulations and § 601.201 of the Statement of Procedural Rules, relating to notice to interested parties, were published in the Federal Register on January 17, 2001, 66 F.R. 3954. The proposed regulations provide greater flexibility in the manner in which the notice may be provided, including use of electronic media. Because the regulations are proposed to be effective with respect to applications made on or after the date the regulations are published in the Federal Register as final regulations, the provisions of this revenue procedure relating to notice to interested parties have not been amended at this time. However, plan sponsors may rely on the proposed regulations for guidance pending the issuance of final regulations.

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January 7, 2002 210 2002–1 I.R.B.