SECTION 11. APPLICATION

PROCEDURES FOR VCP

.01 General rules . The requirements of this section 11 are satisfied if the request for a compliance statement from the Service under VCP satisfies the informational and other requirements of this section 11. In general, a request under VCP consists of a letter from the Plan Sponsor (which may be a letter from the Plan Sponsor’s representative) or Eligible Organization (or representative) to the Service that contains a description of the failures, a description of the proposed methods of correction, and other procedural items, and includes supporting information and documentation as described below.

.02 Submission requirements . The letter from the Plan Sponsor or the Plan Sponsor’s representative must contain the following:

(1) A statement identifying the type of plan submitted ( e.g., Qualified Plan, 403(b) Plan, SEP, or SIMPLE IRA Plan) and, if applicable, whether the submission is a Group Submission, an Anonymous Submission or a nonamender submission.

(2) A complete description of the failures and the years in which the failures occurred, including closed years (that is, years for which the statutory period has expired).

(3) A description of the administrative procedures in effect at the time the failures occurred.

(4) An explanation of how and why the failures arose.

(5) A detailed description of the method for correcting the failures that the Plan Sponsor has implemented or proposes to implement. Each step of the correction method must be described in narrative form. The description must include the specific information needed to support the suggested correction method. This information includes, for example, the number of employees affected and the expected cost of correction (both of which may be approximated if the exact number cannot be determined at the time of the request), the years involved, and calculations or assumptions the Plan Sponsor used to determine the amounts needed for correction.

(6) A description of the methodology that will be used to calculate earnings or actuarial adjustments on any corrective contributions or distributions (indicating the computation periods and the basis for determining earnings or actuarial adjustments, in accordance with section 6.02(4)).

(7) Specific calculations for each affected employee or a representative sample of affected employees. The sample calculations must be sufficient to demonstrate each aspect of the correction method proposed. For example, if a Plan Sponsor requests a compliance statement with respect to a failure to satisfy the contribution limits of § 415(c) and proposes a correction method that involves elective contributions (whether matched or unmatched) and matching contributions, the Plan Sponsor must submit calculations illustrating the correction method proposed with respect to each type of contribution. As another example, with respect to a failure to satisfy

2003–25 I.R.B. 1068 June 23, 2003

signed to assist Plan Sponsors and their representatives in preparing a submission that contains the information and documents required under this revenue procedure. The checklist in Appendix C must be completed, signed, and dated by the Plan Sponsor or the Plan Sponsor’s representative, and should be placed on top of the submission. A photocopy of this checklist may be used.

.10 Designation . The letter to the Service should indicate in the upper right hand corner of the letter the type of plan submitted under VCP, a Qualified Plan, 403(b) Plan, SEP, or SIMPLE IRA Plan. In addition if the submission is a Group Submission, an Anonymous Submission or a nonamender submission, the letter should so indicate.

.11 VCP mailing address . All VCP submissions and accompanying determination applications, if applicable, should be mailed to:

Internal Revenue Service Attention: T:EP:RA:VC P.O. Box 27063 McPherson Station Washington, D.C. 20038

.12 Maintenance of copies of submis- sions . Plan Sponsors and their representatives should maintain copies of all correspondence submitted to the Service with respect to their VCP requests.