SECTION 2. EFFECT OF THIS

REVENUE PROCEDURE ON PROGRAMS

.01 Effect on programs . This revenue procedure modifies and supersedes Rev. Proc. 2002–47, 2002–29 I.R.B. 133, which was the prior consolidated statement of the correction programs under EPCRS. A number of changes have been made to simplify EPCRS and increase uniformity in the administration process and fee structure. The modifications to Rev. Proc. 2002–47 that are reflected in this revenue procedure include:

• consolidating all voluntary correction procedures into a single voluntary correction program (VCP) (sections 4.01(2), 10)

• providing a fixed fee schedule for all VCP submissions (section 12)

• eliminating the Voluntary Correction of Operational Failures Standardized procedure (VCS) (section 10)

• providing for a single time for payment of compliance fees for most VCP submissions (sections 11.04, 11.05)

• expanding EPCRS to SIMPLE IRA Plans (section 4.01)

• adding correction methods and reporting instructions for SEPs and SIMPLE IRA Plans (section 6.10)

• simplifying the Group Submission procedure by eliminating the POA requirement and revising the Group Submission compliance fee (sections 10.12(3)(b), 12.04)

• eliminating the requirement that VCP compliance fees be submitted by certified or cashier’s check (sections 10.06, 11.05 and 12.01)

• expanding the Anonymous and Group Submission procedures to all submissions under VCP including SEPs and SIMPLE IRA Plans (section 10.11, 10.12)

• providing rules relating to reporting plan loan failures (section 6.07)

• providing guidance for EGTRRA nonamenders (section 4.10)

• expanding the definition of Overpayment (section 5.01(6))

• clarifying the special exception to full correction for imprecise or unavailable data (section 6.02(5)(a))

• adding a correction method for a failure to obtain spousal consent (section 6.04)

• clarifying that the correction of failures in a terminated plan may be made under VCP whether or not the trust is in existence (section 10.03)

• updating the definition of Favorable Letter (section 5.01(4))

• revising the Form 5500 information required for VCP submissions (section 11.03)

• extending correction methods in Appendix A and Appendix B to 403(b) Plans, SEPs and SIMPLE IRA Plans (Appendix A, section .01 and Appendix B, section 1.01)

• expanding the correction method for early inclusion of an otherwise eligible employee to include improper inclusion due to the application of an incorrect entry date (Appendix B, section .07(3))

• eliminating the factor under Audit CAP that referred to the VCP fees to emphasize that the Maximum Payment Amount is the basis upon which Audit CAP sanctions are negotiated (section 14.02)

• adding a factor under Audit CAP concerning the determination letter process (section 14.02)

• adding Appendix D - sample formats to assist Plan Sponsors in preparing VCP submissions .02 Future enhancements . (1) It is expected that the EPCRS revenue procedure will continue to be updated on a periodic basis, including, as noted above, further improvements to EPCRS based on comments previously received. In addition, the Ser

vice and Treasury continue to invite further comments on how to improve EPCRS. Comments should be sent to:

Internal Revenue Service Attention: T:EP:RA:VC 1111 Constitution Avenue, NW Washington, D.C. 20224

(2) The Service and Treasury are considering expanding the procedures under EPCRS and are interested in receiving comments regarding, among other things, appropriate correction procedures for failures arising under § 457(b) plans. Submissions relating to § 457(b) eligible governmental plans will be accepted by the Service on a provisional basis outside of EPCRS. Submissions relating to other § 457(b) eligible plans may be accepted outside EPCRS as Employee Plans develops experience in the § 457 area. The Service is also interested in receiving comments regarding appropriate correction procedures for failures arising under Qualified Plans, 403(b) Plans and § 457(b) plans with § 408(q) “deemed IRA” provisions. Submissions related to Qualified Plans, 403(b) Plans and § 457(b) eligible governmental plans with § 408(q) “deemed IRA” provisions will be accepted by the Service on a provisional basis outside of EPCRS.

(3) The Service and Treasury are evaluating the availability of the correction procedures under EPCRS for any failures related to a plan’s participation in a transaction that is a reportable transaction under Treas. Regs. § 1.6011–4(b). Until this evaluation is completed, the Service reserves its right to treat any such failures as ineligible for EPCRS or to deal with any such failures outside EPCRS.