SECTION 13. DESCRIPTION OF

AUDIT CAP

.01 Audit CAP requirements . If the Service identifies a Qualification or 403(b) Failure (other than a failure that has been corrected in accordance with SCP or VCP) upon an Employee Plans or Exempt Organizations examination of a Qualified Plan, 403(b) Plan, SEP, or SIMPLE IRA Plan, the requirements of this section 13 are satisfied with respect to the failure if the Plan Sponsor corrects the failure, pays a sanction in accordance with section 14, satisfies any additional requirements of section 13.03, and enters into a closing agreement with the Service.

.02 Payment of sanction . Payment of the sanction under section 14 generally is required at the time the closing agreement is signed. All sanction amounts should be submitted by certified or cashier’s check made payable to the U.S. Treasury.

.03 Additional requirements . Depending on the nature of the failure, the Ser

2003–25 I.R.B. 1070 June 23, 2003

sponsors are permitted, at their option, to apply the provisions of this revenue procedure on or after June 5, 2003.

Specifically, unless a plan sponsor applies the provisions of this revenue procedure earlier, this revenue procedure is effective:

(1) with respect to SCP, for failures for which correction is not complete before October 1, 2003;

(2) with respect to VCP, for applications submitted on or after October 1, 2003; and

(3) with respect to Audit CAP, for examinations begun on or after October 1, 2003.