Part IV. Items of General Interest

Temporary Closing of the Determination Letter Program for Adopters of Pre-Approved Defined Benefit Plans

Announcement 2009–85

On February 22, 2010, the Service will temporarily stop accepting applications for determination letters for defined benefit plans that are filed on Form 5307, Appli- cation for Determination for Adopters of Master or Prototype or Volume Submit- ter Plans for the GUST ¹ program. The Service is taking this action because all pre-approved ( i.e., master and prototype and volume submitter) defined benefit plans are required to be restated to comply with items identified for review in Notice 2007–3, 2007–1 C.B. 255 (“2006 Cumulative List”), including the Economic Growth and Tax Relief Reconciliation Act of 2001, Pub. L. 107–16, (“EGTRRA”) (with technical corrections made by the Job Creation and Worker Assistance Act of 2002 (JCWAA), Pub. L. 104–147), the Pension Funding Equity Act of 2004 (PFEA), Pub. L. 108–218, the American Jobs Creation Act of 2004 (AJCA), Pub. L. 108–357, the Gulf Opportunity Zone Act of 2005 (GOZA), Pub. L. 109–135, and certain law changes under the Pension Protection Act of 2006 (PPA ’06), Pub. L. 109–280 (“restated pre-approved plans”). These restated pre-approved plans will be submitted to the Service for a determination letter (if needed) using Form 5307 during a period of approximately two years, which the Service expects to announce early in 2010. The temporary hiatus in accepting Form 5307 applications will allow the Service to prepare to receive the applications submitted by adopters of these restated pre-approved plans.

Rev. Proc. 2007–44, 2007–2 C.B. 54, and Rev. Proc. 2005–16, 2005–1 C.B. 674, describe a staggered remedial amendment system for plans that are qualified under § 401(a) of the Internal Revenue Code,

with five-year amendment/approval cycles for individually designed plans and sixyear cycles for pre-approved plans. The submission period for the initial six-year cycle for sponsors and practitioners maintaining pre-approved defined benefit plans ran from February 1, 2007 to January 31, 2008. Sponsors and practitioners were required to restate their pre-approved defined benefit plans for EGTRRA and other changes in plan qualification requirements described in the 2006 Cumulative List, and apply for new opinion and advisory letters during this submission period. As provided in Rev. Proc. 2007–44, when the review of the pre-approved defined benefit plans is near completion, the Service will publish an announcement providing the date by which adopting employers must adopt the newly approved plans. This date will also be the deadline for adopting employers to file Form 5307 determination letter applications for their restated pre-approved defined benefit plans. The Service expects to publish this announcement early in 2010 and anticipates that adopting employers will have approximately two years to adopt the restated plans and request determination letters.

In order to prepare to receive the Form 5307 applications for the restated defined benefit plans that will be filed starting in 2010, the Service will temporarily stop accepting determination letter applications for defined benefit plans filed on Form 5307, beginning February 22, 2010. The Service will continue to process determination letter applications for defined benefit plans filed on Form 5307 before February 22, 2010, provided the plan has a favorable GUST opinion or advisory letter. Any determination letter application for a defined benefit plan filed on Form 5307 postmarked on or after February 22, 2010 and before the opening of the period of approximately two years for adopting the restated pre-approved defined benefit plans will be returned to the applicant.

This announcement does not affect the ability of adopting employers to apply for

determination letters on Form 5307 for pre-approved defined contribution plans. See Announcement 2008–23, 2008–1 C.B. 731. This announcement also does not affect the ability of adopting employers of pre-approved plans (whether defined benefit or defined contribution) to apply on Form 5307 for a determination letter for plan amendments related to a voluntary correction program (VCP) submission or as required under the correction on audit program (Audit CAP), under the procedures described in Rev. Proc. 2008–50, 2008–35 I.R.B. 464.

Announcement of Disciplinary Sanctions From the Office of Professional Responsibility

Announcement 2009–87

The Office of Professional Responsibility (OPR) announces recent disciplinary sanctions involving attorneys, certified public accountants, enrolled agents, enrolled actuaries, enrolled retirement plan agents, and appraisers. These individuals are subject to the regulations governing practice before the Internal Revenue Service (IRS), which are set out in Title 31, Code of Federal Regulations, Part 10, and which are published in pamphlet form as Treasury Department Circular No. 230. The regulations prescribe the duties and restrictions relating to such practice and prescribe the disciplinary sanctions for violating the regulations.

The disciplinary sanctions to be imposed for violation of the regulations are:

Disbarred from practice before the IRS —An individual who is disbarred is not eligible to represent taxpayers before the IRS.

Suspended from practice before the IRS —An individual who is suspended is not eligible to represent taxpayers before the IRS during the term of the suspension.

Censured in practice before the IRS —Censure is a public reprimand. Un

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.

2009–51 I.R.B. 938 December 21, 2009

license or active enrollment status). An enrolled agent or an enrolled retirement plan agent may also offer to resign in order to avoid a disciplinary proceeding.

Suspended by decision in expedited proceeding, Suspended by default de- cision in expedited proceeding, Sus- pended by consent in expedited pro- ceeding —OPR instituted an expedited proceeding for suspension (based on certain limited grounds, including loss of a professional license and criminal convictions).

OPR has authority to disclose the grounds for disciplinary sanctions in these situations: (1) an ALJ or the Secretary’s delegate on appeal has issued a decision on or after September 26, 2007, which was the effective date of amendments to the regulations that permit making such decisions publicly available; (2) the individual has settled a disciplinary case by signing OPR’s “consent to sanction” form, which requires consenting individuals to admit to one or more violations of the regulations and to consent to the disclosure of the individual’s own return information related to the admitted violations (for example, failure to file Federal income tax returns); or (3) OPR has issued a decision in an expedited proceeding for suspension.

Announcements of disciplinary sanctions appear in the Internal Revenue Bulletin at the earliest practicable date. The sanctions announced below are alphabetized first by the names of states and second by the last names of individuals. Unless otherwise indicated, section numbers ( e.g ., §10.51) refer to the regulations.

like disbarment or suspension, censure does not affect an individual’s eligibility to represent taxpayers before the IRS, but OPR may subject the individual’s future representations to conditions designed to promote high standards of conduct.

Monetary penalty —A monetary penalty may be imposed on an individual who engages in conduct subject to sanction or on an employer, firm, or entity if the individual was acting on its behalf and if it knew, or reasonably should have known, of the individual’s conduct.

Disqualification of appraiser —An appraiser who is disqualified is barred from presenting evidence or testimony in any administrative proceeding before the Department of the Treasury or the IRS.

Under the regulations, attorneys, certified public accountants, enrolled agents, enrolled actuaries, and enrolled retirement plan agents may not assist, or accept assistance from, individuals who are suspended or disbarred with respect to matters constituting practice ( i.e ., representation) before the IRS, and they may not aid or abet suspended or disbarred individuals to practice before the IRS.

Disciplinary sanctions are described in these terms:

Disbarred by decision after hearing, Suspended by decision after hearing, Censured by decision after hearing, Monetary penalty imposed after hear- ing, and Disqualified after hearing —An administrative law judge (ALJ) conducted an evidentiary hearing upon OPR’s complaint alleging violation of the regulations and issued a decision imposing one of these sanctions. After 30 days from the

issuance of the decision, in the absence of an appeal, the ALJ’s decision became the final agency decision.

Disbarred by default decision, Sus- pended by default decision, Censured by default decision, Monetary penalty im- posed by default decision, and Disqual- ified by default decision —An ALJ, after finding that no answer to OPR’s complaint had been filed, granted OPR’s motion for a default judgment and issued a decision imposing one of these sanctions.

Disbarment by decision on appeal, Suspended by decision on appeal, Cen- sured by decision on appeal, Monetary penalty imposed by decision on ap- peal, and Disqualified by decision on appeal —The decision of the ALJ was appealed to the agency appeal authority, acting as the delegate of the Secretary of the Treasury, and the appeal authority issued a decision imposing one of these sanctions.

Disbarred by consent, Suspended by consent, Censured by consent, Mone- tary penalty imposed by consent, and Disqualified by consent —In lieu of a disciplinary proceeding being instituted or continued, an individual offered a consent to one of these sanctions and OPR accepted the offer. Typically, an offer of consent will provide for: suspension for an indefinite term; conditions that the individual must observe during the suspension; and the individual’s opportunity, after a stated number of months, to file with OPR a petition for reinstatement affirming compliance with the terms of the consent and affirming current eligibility to practice ( i.e ., an active professional

City & State Name Professional Disciplinary Sanction Effective Date(s) Designation

Arizona

Mesa Jackson, Jeff C. Attorney Suspended by default decision in expedited proceeding under § 10.82 (attorney disbarment)

Indefinite from November 24, 2009

December 21, 2009 939 2009–51 I.R.B.

City & State Name Professional Disciplinary Sanction Effective Date(s) Designation

Iowa

Bettendorf Williamson, Kyle D. Attorney Suspended by default decision in expedited proceeding under §10.82 (conviction under bank fraud; 18 U.S.C. § 1028(a)(1), aggravated identity theft; and 18 U.S.C. § 513(a), forged securities)

California

Beverly Hills Jason, Robert M. Attorney Suspended by default decision in expedited proceeding under §10.82 (suspension of attorney license)

Colorado

Lakewood Bidwell, Larry C. Enrolled Agent Suspended by ALJ default decision for violation of § 10.51 (willfully failing to timely file, or willfully failing to file a personal Federal income tax return)

Georgia

Dahlonega Powell, Jr., George E. Attorney Suspended by decision in expedited proceeding under § 10.82 (suspension of attorney license)

Illinois

Northbrook Solovy, Dean E. Attorney/CPA Disbarred by ALJ default decision for violation of § 10.51 (willfully failing to timely file, or willfully failing to file a personal Federal income tax return)

Indiana

Gary Holland, III, Robert M. Attorney Suspended by decision in expedited proceeding under § 10.82 (suspension of attorney license)

Evansville Perry, Teresa L. Attorney Suspended by default decision in expedited proceeding under § 10.82 (suspension of attorney license)

Indefinite from December 1, 2009

Indefinite from December 1, 2009

Indefinite from August 17, 2009

Indefinite from December 1, 2009

Indefinite from July 14, 2009

Indefinite from November 23, 2009

Indefinite from November 24, 2009

2009–51 I.R.B. 940 December 21, 2009

City & State Name Professional Disciplinary Sanction Effective Date(s) Designation

New Jersey

Cherry Hill Sinko, Michael Attorney Suspended by default decision in expedited proceeding under § 10.82 (conviction under 18 U.S.C. § 1956(h), money laundering conspiracy; 18 U.S.C. § 1953(a)3)(B), money laundering)

New York

Long Beach Feerst, Barry R. Attorney Suspended by decision in expedited proceeding under § 10.82 (conviction under 18 U.S.C. § 371, conspiracy to defraud the united states)

South Setauket Rosner, Robert J. CPA Suspended by default decision in expedited proceeding under § 10.82 (conviction under 18 U.S.C. § 201(c)(1)(B), bribery of a public official)

Pennsylvania

Lock Haven Coploff, Larry Attorney Disbarred by ALJ default decision for violation of § 10.51 (willfully failing to timely file, or willfully failing to file a personal Federal income tax return)

Virginia

Fairfax Hoang, John T. CPA Suspended by decision in expedited proceeding under § 10.82 (permanently enjoined by U.S. district court from representing taxpayers under examination and from other tax-related activities)

Indefinite from November 13, 2009

Indefinite from November 12, 2009

Indefinite from November 13, 2009

Indefinite from September 9, 2009

Indefinite from October 21, 2009

December 21, 2009 941 2009–51 I.R.B.