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IRS Voluntary Correction Program Goes Digital for 2019

Beginning April 1, 2019, Revenue Procedure 2018-52, modifies the IRS Employee Plans Compliance Resolutions System (EPCRS) and significantly changes how Voluntary Correction Program (VCP) applications must be submitted to the IRS. In particular, VCP submissions made on or after April 1, 2019, must be filed electronically through the IRS website, Pay.gov. From January 1, 2019, through March 31, 2019, a plan sponsor has the discretion to submit a VCP either electronically through Pay.gov or on paper forms. All VCP submissions made on paper forms submitted on or after April 1, 2019, will be returned unprocessed. As under the previous procedures, a Plan Sponsor may designate an Authorized Representative (such as an attorney), using IRS Form 2848, to prepare and file the VCP submission electronically on their behalf.

Under the VCP electronic submission procedures, the Plan Sponsor or their Authorized Representative completes and signs the Application for VCP (IRS Form 8950) on Pay.gov and submits the applicable user fee through Pay.gov. If an Authorized Representative is preparing the submission on Pay.gov, the Plan Sponsor will need to sign a separate Penalty of Perjury Statement declaring that it has examined the submission and that it is correct and complete to the best of its knowledge. Additionally, the preparer will need to create a PDF of all additional VCP documents (such as the Form 2848, the signed Penalty of Perjury Statement, if applicable, the Model VCP Compliance Statement and Schedules or failure descriptions, the cover letter, and other  attachments) and upload the PDF through Pay.gov. This PDF upload cannot exceed 15 MB. All documents that cause the PDF upload to exceed 15 MB must instead be faxed into the IRS. After the submission and payment have been completed on Pay.gov, the preparer will receive a confirmation receipt showing the Pay.gov tracking ID number which will also serve as the IRS control number which can be used to track the submission status.

A Reminder on IRS VCP User Fees - Last year the IRS modified the VCP user fees, under Revenue Procedure 2018-4. Effective for VCP submissions made on or after January  2, 2018,  the IRS VCP User Fees are based on net plan assets reported on the most recently filed Form 5500, as follows:

Net Plan Assets

User Fee

$0 to $500,000

$1,500

Over $500,000 to $10,000,000

$3,000

Over $10,000,000

$3,500

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Al Ward Executive Compensation Hill Ward Henderson
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Al is Co-Chair of the firm's Executive Compensation & Employee Benefits practice. Al is recognized throughout the professional community for his depth of experience and knowledge in the employee benefits area. Prior to entering the practice of law, Al was an actuarial and employee benefits consultant for over eight years.

Al has focused for over four decades on executive compensation, employee benefits, trusts and taxation. He represents many clients including publicly traded and privately held, taxable or tax-...

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Kirsten Vignec Employee Benefits Attorney HIll Ward Henderson
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Kirsten is a Shareholder in the firm's Corporate & Tax Group and practice co-chair of the Executive Compensation & Employee Benefits Group. Kirsten’s practice involves employee benefit matters associated with the design and ongoing administration of executive deferred compensation plans, welfare benefit plans, Section 401(k) plans, profit sharing plans, and pension plans. Kirsten represents tax-exempt entities, for-profit, private, and publicly-traded companies.

Kirsten represents clients before the IRS, DOL, and the PBGC with respect to employee benefits matters.

She is a member of the Tax Sections of The Florida Bar and the American Bar Association, as well as the State Bar of California and the District of Columbia Bar.

Away from the office, Kirsten enjoys travel, reading, and spending time with her husband and children.

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Bret Hamlin employee benefit lawyer Hill Ward Henderson
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Bret is a Shareholder in the firm’s Executive Compensation & Employee Benefits Group. He practices primarily in the areas of employee benefits, deferred compensation and trusts. Prior to entering the private practice of law, he provided plan design and consulting, third-party administration and investment, as well as retirement plan education services for clients. 

Bret represents large, medium and small employers with respect to many employee benefit matters, including both single employer and multiple employer qualified retirement plans, deferred...

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Melanie Hancock Brown Employee Benefits lawyer Hill Ward Henderson
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Melanie is a Shareholder in the firm’s Executive Compensation & Employee Benefits Group. She practices in the area of ERISA, employee benefits and executive compensation. Melanie counsels a diverse clientele of for-profit,  nonprofit and governmental entities of all sizes regarding their qualified and nonqualified employee benefit plans, including 401(k) and profit sharing plans, 457 and 403(b) plans, defined benefit plans, ESOPs and other stock based benefits, and health, welfare and other fringe benefit plans. She drafts qualified and nonqualified plans, and provides...

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Timothy P Zehnder employee lawyer Hill Ward Henderson
Associate

Tim is an Associate in the firm’s Executive Compensation & Employee Benefits Group. His practice focuses primarily on advising client employers (private and public, tax-exempt and for-profit) on a wide variety of compensation and benefits matters, including plan design, administration and termination, compliance with applicable laws (including the Internal Revenue Code, ERISA, HIPAA, and the Affordable Care Act), and resolution of compliance issues with the Internal Revenue Service, Department of Labor and Pension Benefit Guaranty Corporation.  Tim has experience assisting...

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