PART II — Internal Revenue Bulletin 2018-1

Does the Plan limit transfers to “Excess Assets” as defined in § 420(e)(2) of the Code?

Yes No ___

Does the Plan provide that only one transfer may be made in a taxable year? Yes No ___
Does the Plan provide that the amount transferred shall not exceed the amount Yes No ___ reasonably estimated to be paid for qualified current retiree liabilities?
Does the Plan provide that no transfer will be made after December 31, 2025? Yes No ___
Does the Plan provide that transferred assets and income attributable to such Yes No ___ assets shall be used only to pay qualified current retiree liabilities for the taxable year of transfer?
Does the Plan provide that any amounts transferred (plus income) that are not used to pay qualified current retiree liabilities shall be transferred back to the defined benefit portion of the Plan?

Yes No ___

January 2, 2018 226 Bulletin No. 2018–1

Does the Plan provide that amounts paid out of a health benefits account or an applicable life insurance account will be treated as paid first out of transferred assets and income attributable to those assets?
Does the Plan provide that participants’ accrued benefits become nonforfeitable on a termination basis (i) immediately prior to transfer, or (ii) in the case of a participant who separated within 1 year before the transfer, immediately before such separation?
In the case of transfers described in § 420(b)(4) of the Code relating to 1990, does the Plan provide that benefits will be recomputed and become nonforfeitable for participants who separated from service in such prior year as described in § 420(c)(2)?
Does the Plan provide that transfers will be permitted only if each group health plan or arrangement or group-term life insurance plan, as applicable contains provisions satisfying § 420(c)(3) of the Code, as amended?
Does the Plan define “applicable employer cost”, “cost maintenance period” and“ benefit maintenance period”, as needed, consistently with § 420(c)(3) of the Code, as amended?
Does the Plan provide that transferred assets cannot be used for key employees?

Yes No ___

Bulletin No. 2018–1 227 January 2, 2018

APPENDIX D

SAMPLE FORMAT FOR A LETTER RULING REQUEST FROM EMPLOYEE PLANS RULINGS AND AGREEMENTS

( Insert the date of request )

[for Employee Plans]

Internal Revenue Service

Attention: EP Letter Rulings

Stop 31

P.O. Box 12192

Covington, KY 41012-0192

Dear Sir or Madam:

( Insert the name of the taxpayer ) (the “Taxpayer”) requests a ruling on the proper treatment of ( insert the subject matter of the letter ruling request ) under § ( insert the number ) of the Internal Revenue Code.

[ If the taxpayer is requesting expedited handling, the letter ruling request must contain a statement to that effect. This statement must explain the need for expedited handling. See section 6.03(3). ]

A. STATEMENT OF FACTS

Taxpayer Information

[Provide the statements required by sections 6.02(1)(a), (b), and (c) of Rev. Proc. 2018–4, 2018–1 I.R.B 146. Hereafter, all references are to Rev. Proc. 2018–4, unless otherwise noted.)]

For example, a taxpayer that maintains a qualified employee retirement plan and files an annual Form 5500 series of returns may include the following statement to satisfy sections 6.02(1)(a), (b), and (c):

The Taxpayer is a construction company with principal offices located at 100 Whatever Drive, Wherever, Maryland 12345, and its telephone number is (123) 456-7890. The Taxpayer’s federal employer identification number is 00-1234567. The Taxpayer uses the Form 5500 series of returns on a calendar year basis to report its qualified employee retirement plan and trust.

Detailed Description of the Transaction.

[The ruling request must contain a complete statement of the facts relating to the transaction that is the subject of the letter ruling request. This statement must include a detailed description of the transaction, including material facts in any accompanying documents, and the business reasons for the transaction. See sections 6.02(1)(b), 6.02(1)(c), and 6.02(2).]

B. RULING REQUESTED

[The ruling request should contain a concise statement of the ruling requested by the taxpayer.]

C. STATEMENT OF LAW

[The ruling request must contain a statement of the law in support of the taxpayer’s views or conclusion, including any authorities believed to be contrary to the position advanced in the ruling request. This statement must also identify any pending legislation that may affect the proposed transaction. See sections 6.02(6), 6.02(7), and 6.02(8).]

D. ANALYSIS

[The ruling request must contain a discussion of the facts and an analysis of the law. See sections 6.02(3), 6.02(6), 6.02(7), and 6.02(8).]

January 2, 2018 228 Bulletin No. 2018–1

E. CONCLUSION

[The ruling request should contain a statement of the taxpayer’s conclusion on the ruling requested.]

F. PROCEDURAL MATTERS

Rev. Proc. 2018–4 statements

a. [The statement required by section 6.02(4).]

b. [The statement required by section 6.02(5).] c. [The statement required by section 6.02(6) regarding whether the law in connection with the letter ruling request is uncertain

and whether the issue is adequately addressed by relevant authorities.]

d. [The statement required by section 6.02(7) if the taxpayer determines that there are no contrary authorities.]

e. [If the taxpayer wants to have a conference on the issues involved in the letter ruling request, the ruling request should

contain a statement to that effect. See section 6.03(5).]

f. [If the taxpayer is requesting the letter ruling to be issued by fax, the ruling request should contain a statement to that effect.

See section 6.03(4).]

g. [If the taxpayer is requesting separate letter rulings on multiple issues, the letter ruling request should contain a statement

to that effect. See section 6.03(1).]

Administrative

a. A Power of Attorney is enclosed. [ See sections 6.02(12) and 6.03(2).]

b. The deletions statement and checklist required by Rev. Proc. 2018–4 are enclosed. [ See sections 6.02(9) and 6.02(16).]

c. The required user fee is enclosed. [ See section 6.02(15).]

Very truly yours,

( Insert the name of the taxpayer or the taxpayer’s authorized representative )

By:

Signature Date

Typed or printed name of person signing request

DECLARATION: [ See section 6.02(13).]

Under penalties of perjury, I declare that I have examined this request, including accompanying documents, and, to the best of my knowledge and belief, the request contains all the relevant facts relating to the request and such facts are true, correct, and complete.

( Insert the name of the taxpayer )

By:

Signature Title Date

Typed or printed name of person signing declaration

Bulletin No. 2018–1 229 January 2, 2018

APPENDIX E

CHECKLIST FOR LETTER RULINGS FROM EMPLOYEE PLANS RULINGS AND AGREEMENTS

IS YOUR RULING REQUEST COMPLETE?

INSTRUCTIONS

The Service will be able to respond more quickly to your letter ruling request if it is carefully prepared and complete. To ensure that your request is in order, use this checklist. Complete the four items of information requested before the checklist. Answer each question by circling “Yes,” “No,” or “N/A.” If a question contains a place for a page number, insert the page number (or numbers) of the request that gives the information called for by a yes answer to a question. Sign and date the checklist (as taxpayer or authorized representative) and place it on top of your request.

If you are an authorized representative submitting a request for a taxpayer, you must include a completed checklist with the request or the request will either be returned to you or substantive consideration of it will be deferred until a completed checklist is submitted. If you are a taxpayer preparing your own request without professional assistance, an incomplete checklist will not be cause for returning your request or deferring substantive consideration of the request. However, you should still complete as much of the checklist as possible and submit it with your request.

TAXPAYER’S NAME ________________________________________

TAXPAYER’S I.D. No. ______________________________________

ATTORNEY/P.O.A. __________________________________________

PRIMARY CODE SECTION _____________________________________

CIRCLE ONE ITEM

Yes No N/A 1. Does your request involve an issue under the jurisdiction of Employee Plans Rulings and Agreements? See section 24.01 of Rev. Proc. 2018–4, 2018–1 I.R.B. 146 for the list of issues on which Employee Plans Rulings and Agreements issues letter rulings. See section 5 of Rev. Proc. 2018–4, for issues under the jurisdiction of other offices. (Hereafter, all references are to Rev. Proc. 2018–4, unless otherwise noted.)

Yes No N/A 2. If the request deals with a completed transaction, have you filed the return for the year in which the Page ____ transaction was completed? See sections 24.01.

Yes No 3. Are you requesting a letter ruling on a hypothetical situation or question? See section 25.03.

Yes No 4. Are you requesting a letter ruling on alternative plans of a proposed transaction? See section 25.03.

Yes No 5. Are you requesting the letter ruling for only part of an integrated transaction? See section 25.04.

Yes No 6. Have you submitted another letter ruling request for the transaction covered by this request?

Yes No 7. Are you requesting the letter ruling for a business, trade, industrial association, or similar group concerning the application of tax law to its members? See section 24.06.

Yes No 8. Have you included a complete statement of all the facts relevant to the transaction? See section Page ____ 6.02(1).

Yes No N/A 9. Have you submitted with the request true copies of all wills, deeds, plan documents, and other documents relevant to the transaction, and labeled and attached them in alphabetical sequence? See section 6.02(2).

Yes No 10. Have you included, rather than merely incorporated by reference, all material facts from the docuPage ____ ments in the request? Are they accompanied by an analysis of their bearing on the issues that specifies

the document provisions that apply? See section 6.02(3).

Yes No 11. Have you included the required statement regarding whether the same issue in the letter ruling rePage ____ quest is in an earlier return of the taxpayer or in a return for any year of a related taxpayer? See section

6.02(4).

Yes No 12. Have you included the required statement regarding whether the Service previously ruled on the Page ____ same or similar issue for the taxpayer, a related taxpayer, or a predecessor? See section 6.02(5).

Have you included the required statement regarding whether the Service previously ruled on the same or similar issue for the taxpayer, a related taxpayer, or a predecessor? See section 6.02(5).

January 2, 2018 230 Bulletin No. 2018–1

ITEM

CIRCLE ONE

Yes No Page ____

Yes No 13. Have you included the required statement regarding whether the taxpayer, a related taxpayer, a prePage ____ decessor, or any representatives previously submitted the same or similar issue but withdrew it before the

letter ruling was issued? See section 6.02(5).

Yes No 14. Have you included the required statement regarding whether the law in connection with the request is Page ____ uncertain and whether the issue is adequately addressed by relevant authorities? See section 6.02(6).

Yes No 15. Have you included the required statement of relevant authorities in support of your views? See secPage ____ tion 6.02(6).

Yes No N/A 16. Does your request discuss the implications of any legislation, tax treaties, court decisions, regulaPage ____ tions, notices, revenue rulings, or revenue procedures you determined to be contrary to the position ad vanced? See section 6.02(7), which states that taxpayers must inform the Service of such authorities.

Yes No N/A 17. If you determined that there are no contrary authorities, have you included a statement to this effect Page ____ in your request? See section 6.02(7).

Yes No N/A 18. Have you included in your request a statement identifying any pending legislation that may affect Page ____ proposed transaction? See section 6.02(8).

Yes No N/A 18. Have you included in your request a statement identifying any pending legislation that may affect the Page ____ proposed transaction? See section 6.02(8).

Yes No 19. Is the request accompanied by the deletions statement required by § 6110? See section 6.02(9).

Yes No N/A 20. Have you (or your authorized representative) signed and dated the request? See section 6.02(10). Page____

Yes No N/A 21. If the request is signed by your representative, or if your representative will appear before the Service in connection with the request, is the request accompanied by a properly prepared and signed power of attorney (Form 2848) with the signatory’s name typed or printed? See section 6.02(12).

Yes No N/A 22. Have you included, signed and dated, the penalties of perjury statement in the form required by secPage____ tion 6.02(14)?

Have you (or your authorized representative) signed and dated the request? See section 6.02(10).

Yes No N/A 22. Have you included, signed and dated, the penalties of perjury statement in the form required by secPage____ tion 6.02(14)?

Yes No N/A 23. Have you included the correct user fee with the request and made your check or money order payable to the United States Treasury? See section 6.02(15) and section 30 and Appendix A, for the correct amount and additional information on user fees.

Yes No N/A 24. Are you submitting your request in duplicate if necessary? See section 6.02(16).

Yes No N/A 25. If you are requesting separate letter rulings on different issues involving one factual situation, have Page____ you included a statement to that effect in each request? See section 6.03(1).

Yes No N/A 26. If you have more than one representative, have you designated whether the representatives listed Page____ the power of attorney (Form 2848) are to receive a copy of the letter ruling? See section 6.03(2).

Yes No N/A 26. If you have more than one representative, have you designated whether the representatives listed on Page____ the power of attorney (Form 2848) are to receive a copy of the letter ruling? See section 6.03(2).

Yes No N/A 27. If you want your letter ruling request to be processed ahead of the regular order or by a specific date, have you requested expedited handling in the form required by section 6.03(3) and stated a compelling need for such action in the request?

Yes No N/A 28. If you want to have a conference on the issues involved in the request, have you included a request Page____ for a conference in the ruling request? See section 6.03(5).

Yes No N/A 29. If your request is covered by any of the revenue procedures listed in section 26, have you complied with all of the requirements of the applicable revenue procedures?

Yes No N/A 30. If you are requesting relief under § 7805(b) (regarding retroactive effect), have you complied with Page____ of the requirements in section 29.10?

Yes No N/A 30. If you are requesting relief under § 7805(b) (regarding retroactive effect), have you complied with all Page____ of the requirements in section 29.10?

Yes No N/A 31. Have you addressed your request to the appropriate office provided in section 31? Improperly addressed requests may be delayed (sometimes for over a week) in reaching the appropriate office for initial processing.

Signature Title or authority Date

Typed or printed name of person signing checklist

Bulletin No. 2018–1 231 January 2, 2018

APPENDIX F

ADDITIONAL CHECKLIST FOR ROTH IRA RECHARACTERIZATION RULING REQUESTS

In order to assist Employee Plans in processing a ruling request involving a Roth IRA recharacterization, in addition to the items in Appendix E, please check the following list. Answer each question by circling “Yes,” “No,” or “N/A.” If a question contains a place for a page number, insert the page number (or numbers) of the request that gives the information called for by a yes answer to a question.

Yes No N/A Page__

Did you include the name(s) of the trustee and/or custodian of the traditional individual retirement account (IRA) (generally, a financial institution)?
Is each IRA identification number included?
If the ruling request involves Roth conversions of a married couple, is the necessary information with respect to each IRA of each party included? Note: as long as the parties file a joint federal Form 1040, the Service can issue one ruling covering both parties. Furthermore, if a joint federal income tax return has been filed for the year or years in question, the Service only requires one user fee even if each spouse had failed conversions.
If there was one or more attempted conversions, are the applicable dates on which the attempted IRA conversion(s) occurred included?
If the reason that a conversion failed is that the taxpayer or related taxpayers relied upon advice of a tax professional such as a CPA, or an attorney, is the name and occupation of that adviser included?
Is certification that the taxpayer or taxpayers timely filed the relevant federal tax return(s) included?
Is there a short statement of facts with respect to the conversion? For example, if the ruling request involves a conversion attempted in 1998, there should be a statement of the facts that includes a representation of why the due date(s) found in Announcement 99–57 and Announcement 99–104 were not met.
If the taxpayer recharacterized his/her Roth IRA to a traditional IRA prior to submitting a request for § 9100 relief, are the date(s) of the recharacterization(s), name(s) of trustees and/or custodians, and the identification numbers of the traditional IRA(s) included?
Does the request include the type of contribution (i.e., regular or conversion) and amount of the contribution being recharacterized?

January 2, 2018 232 Bulletin No. 2018–1

26 CFR 601.201: Rulings and determination letters.

Rev. Proc. 2018–5

TABLE OF CONTENTS

SECTION 1. WHAT IS THE PURPOSE OF THIS REVENUE PROCEDURE? ...........................................................................................235

Description of terms used in this revenue procedure...................................................................................................................235 Updated Annually ..........................................................................................................................................................................236

SECTION 2. NATURE OF CHANGES TO REV. PROC. 2017–5 AND RELATED REVENUE PROCEDURES AND FORMS ..........236

What changes have been made to Rev. Proc. 2017–5? ...............................................................................................................236 Related revenue procedures...........................................................................................................................................................237 Related forms that are not a request for a determination letter...................................................................................................238

SECTION 3. UNDER WHAT CIRCUMSTANCES DOES EO DETERMINATIONS ISSUE DETERMINATION LETTERS? ............238

Matters on which EO Determinations will issue a determination letter......................................................................................238 Circumstances under which determination letters are not issued ................................................................................................239 Technical advice may be requested in certain cases....................................................................................................................240 Review of determination letters ....................................................................................................................................................240 Determination letter based solely on administrative record.........................................................................................................241

SECTION 4. WHAT ARE THE GENERAL INSTRUCTIONS FOR REQUESTING DETERMINATION LETTERS? .........................241

In general .......................................................................................................................................................................................241 Format of request...........................................................................................................................................................................241 Form 1023 application...................................................................................................................................................................241 Form 1023-EZ application.............................................................................................................................................................241 Form 1024 application...................................................................................................................................................................242 Form 1028 application...................................................................................................................................................................242 Form 8940 request for miscellaneous determination ...................................................................................................................242 Letter request .................................................................................................................................................................................242 Language requirements..................................................................................................................................................................243 Signature on request ......................................................................................................................................................................243 Power of attorney and declaration of representative....................................................................................................................243 Penalty of perjury statement..........................................................................................................................................................243 Applicable user fee ........................................................................................................................................................................244 Where will copies of the determination letter be sent? ...............................................................................................................244 Expedited processing .....................................................................................................................................................................244 Non-acceptance for processing......................................................................................................................................................245 How to check on status of request................................................................................................................................................246