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CCH® PENSION — 04/07/10

IRS provides tips to help speed processing of Form 5307 applications

The deadline to submit determination letter applications for employers who adopted an EGTRRA-approved defined contribution Master or Prototype (M&P) or Volume Submitter (VS) plan is April 30, 2010. Adopting employers must use Form 5307 (Application for Determination for Adopters of Master or Prototype or Volume Submitter Plans (Rev. March 2008)). In the Spring 2010 issue of Employee Plans News, the IRS has provided some tips to help speed processing of the Form 5307.

Actions to help speed processing

The IRS listed some of the actions employers can take to help speed the processing of Form 5307:

• Enclose the correct user fee. The IRS asks that employers submit one check per application and staple it to the front of Form 8717, User Fee for Employee Plan Determination, Opinion, and Advisory Letter Request. The IRS said it will return applications not exempt from the user fee if it is missing.

• Use the current version of all forms.

• Submit original forms and documents whenever possible.

• Check that all plan documents and/or amendments are signed and dated, if applicable. If needed for proof of timely adoption, submit additional documentation such as a board resolution.

• Ensure that the application is complete. Submit all required forms and documents. Rev. Proc. 2010-6, Rev. Proc. 2007-44, and IRS Announcement should be reviewed.

• Follow the form instructions and submit all required attachments. (See the Instructions for Form 5307 for questions needing explanations/attachments.)

• Clearly identify each document by using titles and page numbers, or identifying separator sheets.

• Include a copy of the prior determination letter, if applicable.

• Enclose the current EGTRRA opinion or advisory letter. If an existing plan has not received a GUST determination letter, submit a copy of the prior GUST opinion or advisory letter, if applicable.

• Include Form 8905, Certification of Intent to Adopt, if applicable.

• Enclose a cover letter detailing why you are applying, what you are submitting and any additional relevant information.

• State if the Volume Submitter is a word-for-word adopter. If there are any modifications, list and explain each modification (see Rev. Proc. 2010-6, §9.02). This may be included in the cover letter, the IRS advises.

• Separate multiple applications with brightly colored paper instead of clips or binders.

• Use 8 1/2 by 11 paper. Odd size or colored documents should be copied onto 8 1/2 by 11 paper for better scanning.

• Ensure Form 2848, Power of Attorney and Declaration of Representative, is correctly completed and timely signed. Review the form's instructions for signature requirements and timeliness.

• File the application on time. If possible, file early to allow for more efficient and accurate processing.

What to avoid

The IRS advises filers not to use staples (except to attach a check to the front of Form 8717), paper clips or binder clips. Also do not attach sticky notes to the application, do not punch holes in the application, and don't use odd size or colored paper within the application.The IRS also advises employers not to include unnecessary documents, such as instructions or summary plan descriptions. If submitting an M&P with an adoption agreement, the employer should not send the base plan document. Also, the Notice to Interested Parties does not need to be included if the Form 5307 box 3i is checked yes.

Source: IRS Employee Plans News, Volume 10/Spring 2010.

For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer's Benefits Reports.

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