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Top Mistakes in Voluntary Correction Program (VCP) Submissions

See the Correcting Plan Errors page for information on how to complete your VCP submission.

More tips for avoiding common mistakes in VCP submissions.

General information and fees

  • Compliance fee was not included or the incorrect fee was paid.

  • Applicant used owner's Social Security Number instead of its Employer Identification Number.

  • Plan assets and participant count information was not provided.

  • Applicant did not include the plan name, EIN and plan number as a header on each page of the Appendix C.

  • Applicant modified the Appendices or Schedules or did not include every page of the Schedules.

  • Items on an Appendix or Schedule that did not apply were deleted.

  • Applicant mailed a related determination letter application separately.

  • Applicant enclosed a single check for the VCP submission compliance fee and for the determination letter application user fee. Separate checks must be remitted for each submission.

  • Applicant did not submit a valid Power of Attorney form (Form 2848) to authorize the IRS to discuss the application with the sponsor’s representative. Form 2848 must be signed by an officer of the plan sponsor.

  • The submission did not state a plan qualification failure under IRC Section 401(a). The IRS will not review your submission to identify the plan failure.

Representations, administrative procedures and requests for special tax relief

  • The Applicant’s Representations page (Penalty of Perjury Statement) was signed by the legal representative (power of attorney) instead of by an officer of the plan sponsor.

  • Applicant did not check either box to state whether or not the plan sponsor or plan engaged in an Abusive Tax Avoidance Transaction.

  • Applicant modified the Enforcement Resolution section (to be completed by the IRS Only).

  • Applicant did not include specific proposed changes to administrative procedures or the proposed changes did not address how they would prevent the failure from recurring.

  • Tax relief check boxes were selected although not applicable (the tax would not apply based on the failures reported in the submission).

  •  The Applicant requested special tax relief but did not include justification for the request.

Late plan amendments

  • Applicant did not specify the particular provisions that were not timely reflected in the plan.

  • The Applicant did not specify the plan section that includes the amendment not timely adopted.

  • The late amendment was not reported on the appropriate Schedule, 1 or 2.

    • If interim amendments are adopted late, but before the end of the plan’s remedial amendment cycle, their late adoption is reported on Schedule 1.

    • If interim amendments are adopted after the end of the cycle during which they are required to be adopted, the failure is reported as a failure to comply with the changes required by the Cumulative List used to review plans in that cycle, on Schedule 2.

  • Applicant did not check the boxes correctly.

    • Applicant checked too many boxes (for example, all Cumulative Lists).

    • Applicant selected check boxes on the Schedule for provisions that it was not required to adopt.
      Example: A 401(k) plan should not report the failure to amend the plan to reflect law provisions that only apply to defined benefit plans.
Page Last Reviewed or Updated: 07-Aug-2013