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Part 7. Rulings and Agreements

Chapter 13. Employee Plans Automated Processing Procedures

Section 5. Letter Generation

7.13.5  Letter Generation

7.13.5.1  (04-01-2003)
Overview

  1. Procedures are provided on the Letter Generation System and the options available to its users.

  2. Most letters and paragraphs approved for nationwide use (to develop and close cases) are included on the letter text (It) file for the letter generation subsystem. The letter text file operates on the concept of letter and paragraph numbers.

  3. Each letter consists of one or more of the following types of paragraphs:

    • Automatic paragraphs

    • Required paragraphs

    • Selective paragraphs

    • Customized paragraphs

7.13.5.2  (04-01-2003)
Specific Instructions

  1. These instructions are for the Employee Plans specialist when preparing a letter to the applicant in response to information received, request for additional information or final determination.

7.13.5.2.1  (04-01-2003)
Automatic Paragraphs

  1. These paragraphs must be included in the letter and are automatically printed. They appear on the screen for reference and are not entered.

7.13.5.2.2  (04-01-2003)
Required Paragraphs

  1. These paragraphs must be included in the letter, the specialist must enter the paragraph number(s) on the Create-Letter-Screen and type in the appropriate variable information (fill-ins), which is limited to 20 characters of alpha-numeric data.

  2. Required paragraph numbers are automatically displayed at the bottom of the Create-Letter-Screen and the user can not complete the creation of the letter without entering these paragraphs.

7.13.5.2.3  (04-01-2003)
Selective Paragraphs

  1. These paragraphs are not required in the letter, the specialist must enter the appropriate number(s) on the Create-Letter-Screen. Some selective paragraphs are printed in the body of the letter (see letter exhibits).

  2. Paragraphs numbered in series 100 through 2999 and 7000 through 7999 are printed as an enclosure to the letter in the order entered on the Create-Letter-Screen.

    1. The system does not prompt the user in the use of these paragraphs. If a selected paragraph requires variable information, the user cannot complete the letter without entering data in the field next to the paragraph number on the Create-Letter-Screen.

    2. The variable entered is limited to 20 characters.

7.13.5.2.4  (04-01-2003)
Customized Paragraphs

  1. These are individually developed paragraphs that must be typed by the specialist. Customized paragraphs are printed as an enclosure to the letter in the order entered on the Create-Letter-Screen.

  2. To customize paragraphs, the specialist must enter paragraph number(s) beginning with 9001.

    1. This will bring up the screen on which the customized paragraph is typed.

    2. These paragraphs are limited to ten lines of text with no more than 80 characters per line.

    3. The paragraphs can be connected by using consecutively numbered paragraphs (e.g., 9001, 9002, 9003, etc.).

    4. If space is desired between paragraphs, the first line of each paragraph must be blank with text starting on the second line. The system compensates for blank lines at the end of these paragraphs, so leaving a blank line at the end of paragraph 9000 (for example) will not create a space between paragraphs 9000 and 9001.

7.13.5.3  (04-01-2003)
Letter Text

  1. Each Area office is allotted ten (10) paragraphs on the letter text for EP development letters to advise applicants where to send the requested information. This feature is intended to promote prompt association of responses with case files by directing the mail to the specific group or post of duty address.

  2. These paragraphs are numbered from 3000 to 3099 and are selective paragraphs, which are printed in the body of the letter.

  3. The EP- Determination Centralized Site in Cincinnati (EP-DCSC) will add the language within the parameters on the letter text and provide the users with the numbers that are appropriate for the addresses added to the text.

  4. The language which must be used for each paragraph added is as follows:


    "Please mail the information requested in this letter to the following address...."

  5. The letter text file also provides space for up to 1,000 centrally developed paragraphs per letter number (paragraphs 7,000 through 7,999) which can be included, by selection, in the letters on the letter text file.

    1. This feature is designed to accommodate the current IRM provisions which allow field offices to print up to four months supply of developed letters and use them while simultaneously requesting Headquarters approval of the language.

    2. These paragraphs are also printed on an enclosure in the order entered on the Create-Letter Screen. The EP-DCSC must provide procedures for identifying and using these paragraphs.

7.13.5.3.1  (03-01-2006)
Entity Information

  1. Entity information is automatically transferred from Data Transcription Subsystem (DTS) to the LGS. If entity information for a case is not present, it must be entered on the letter generation subsystem before a letter can be created for the entity. See instructions in IRM 7.14.4, Employee Plan User Manual - Letter Generation.

7.13.5.3.2  (03-01-2006)
Signature & Date

  1. All letters must contain a signature. Rubber (facsimile) stamps may be used for closing letters, which in most instances must be issued with the signature of the Manager, EP Determinations.

  2. Letters should be date stamped with the same date that the case was approved on EDS.

7.13.5.4  (04-01-2003)
EP Development Letter

  1. Letter 1196 (DO/CG), first request for additional information, Letter 1955 (DO/CG), second and subsequent request for additional information, and Letter 1197 (DO/CG), ten day letter, are the primary development letters for EP determination cases. The user must first follow the instructions in the IRM 7.14.4, EDS Employee Plan User Manual - Letter Generation, for creating or accessing the entity information before creating the letter.

  2. The created letter will be printed in two parts; the cover letter and an enclosure. The enclosures will contain the information or amendments being requested.

  3. In creating the cover letter, the specialist must enter only the required paragraph numbers and type in the variable information such as the response date. See Exhibits 7.13.5–3, 7.13.5–4, and 7.13.5–5. These paragraph numbers will be reflected at the bottom of the Create-Letter-Screen.

  4. The enclosure is created by entering selective or customized paragraph numbers on the Create-Letter-Screen. The paragraphs will be printed in the order entered on the Screen.

    1. To address problem areas identified on the Alert Guidelines Worksheets, the specialist must enter the corresponding paragraph code(s) from the Alert Guideline Worksheet and, if applicable, fill in the variable information (section(s) of the plan that must be amended). These paragraphs mirror those on plan deficiency check sheet.

    2. If the alert guideline paragraphs are not appropriate, the specialist should look for an appropriate centrally developed paragraph. Cincinnati office must write instructions for identifying and using locally developed paragraphs.

    3. If there is no appropriate computerized paragraph, or if there is a need to expand on a computerized paragraph, the specialist must type (customize) the appropriate 9000 series paragraph. See the IRM 7.14.4, Letter Generation, for specific instructions on the use of 9000 series paragraphs.

7.13.5.4.1  (04-01-2003)
Other EP Letters

  1. Other EP letters can be created through the letter generation subsystem. The letters, with instructions, are included in this section as exhibits. A complete list of the letters, by description, letter numbers and exhibit numbers, is reflected in Exhibit 7.13.5–1.

Exhibit 7.13.5-1  (03-01-2006)
Computer Generated (DO/CG) Letters and Forms

Description Letter/Form Number Exhibit Number
Incomplete Letter 1012 (DO/CG) 5–2

Letter for Returning Application Substantially Deficient 		1013 (DO/CG) 5-3
Letter for First Request for Additional Info 1196 (DO/CG) 5–4
Letter for Second & Subsequent Request for Add Info 1955 (DO/CG) 5–5
Ten-Day Letter 1197 (DO/CG) 5–6
Suspense Letter 1938 (DO/CG) 5–7
Proposed Adverse Letter 1755 (DO/CG) 5–8
Final Adverse-No Appeal Requested 1724 (DO/CG) 5–9
Final Adverse After Technical Advice 2052 (DO/CG) 5–10
Withdrawal Letter (Adopted Plan) 2044 (DO/CG) 5–11
Letter for Favorable, Change in Affiliated Service Group 1517 (DO/CG) 5–12
Not Authorized to Rule Letter 1924 (DO/CG) 5–13
Favorable Letter (General) and Explanations 835 (DO/CG) 5–14 & 5–15
Favorable Termination Letter and Explanations 1132 (DO/CG) 5–16 & 5–17
Favorable for Plan/Adverse for IRC 401(k) Letter 2232 (DO/CG) 5–18
Letter for Returning Deficient Plans 2234 (DO/CG) 5–19
Letter Granting Extension of Time to Submit Info (User Fees) 2337 (DO/CG) 5–20
Letter for Technical Advice Request Notice to Taxpayer 1399 (DO/CG) 5–21
Letter for Interested Party Transmittal 1935 (DO/CG) 5–22
Letter for Response to Interested Party 1936 (DO/CG) 5–23
Letter for Group Trust Arrangement 1520 (DO/CG) 5–24
Case Assignment Letter 3335 (DO/CG) 5–25
Dishonored User Fee Check Letter 2927 (DO/CG) 5–26
Quality Assurance Staff Assignment Letter 3537 (DO/CG) 5–27
Acknowledgement Form of Determination, Notification, or Advisory Letter Filing Form 2693 5–28
Acknowledgement of filing Form 5310-A Form 2706 5–29
Volume Submitter — Returning Deficient Plan Letter (HISTORICAL) 2441 (DO/CG) 5–30

Exhibit 7.13.5-2  (03-01-2006)
Letter 1012 (DO/CG)
Letter for Returning Incomplete EP Applications

EDS
Paragraph
Numbers 		Text
  Employer Identification Number:
  DLN:
  Person to Contact:
  ID#:
  Contact Telephone Number:
  Plan Name:
  Plan Number:
[Salutation]  
1
(Automatic) 		 We previously wrote to you requesting certain items, described on the enclosed list, needed to complete your application for a determination letter for the plan identified above. To date we have not received the requested items. Therefore, your application is rejected, and we are closing your case.
2
(Automatic) 		 We are returning all material to you or your representative and our records will reflect that there is no pending request for a determination letter regarding the plan identified above. If you still wish to receive a determination letter, you or your representative should resubmit the entire package with the requested information. PLEASE ALSO RETURN A COPY OF THIS LETTER WHEN YOU RESUBMIT YOUR PLAN.
3
(Automatic) 		 The 270-day period specified in section 7476(b) of the Internal Revenue Code (relating to declaratory judgments) will not begin until we receive your complete and correct application. However, if you return a complete and correct application within 30 days from the date of this letter, we will use the original submission date for purposes of determining the remedial amendment period under Code section 401(b).
4
(Automatic) 		 User fees are not refundable for requests that are returned to the submitter as incomplete. If you resubmit the request by the date indicated above, no additional payment will be due. However, if you resubmit your request after that date, another user fee payment is required.
5
(Automatic) 		 If you have questions concerning this matter, please contact the person whose name and telephone number are shown above.
5998
(Selective) 		 We have sent a copy of this letter to your representative as indicated in your Power of Attorney.
5999
(Automatic) 		 Thank you for your cooperation.
Sincerely yours,
8500
(Automatic) 		 Robert P. Bell
Manager, EP Determinations
8000
(Automatic) 		 User Fee Response Date:
8501
(Automatic) 		Enclosures:
List of Missing Items
Application
2001
(Automatic) 		 List of Missing Items

Exhibit 7.13.5-3  (03-01-2006)
Letter 1013 (DO/CG)
Letter for Returning Application Substantially Deficient

EDS
Paragraph
Numbers 		Text
  Employer Identification Number:
  DLN:
  Person to Contact:
  ID#
  Contact Telephone Number:
  Plan Name:
  Plan Number:
  Response Date:
[Salutation]  
1
(Automatic) 		 We have reviewed the application package submitted for the plan indicated above and have determined that the package does not contain documents/items required by the instructions to the application and/or Revenue Procedure 2004-6 (see the enclosed List of Missing Items). Therefore, your application is rejected, and we are closing your case.
2
(Automatic) 		 We are returning all material to you or your authorized representative and our records will reflect that there is no pending request for a determination letter regarding the plan identified above. If you still wish to receive a determination letter, you or your authorized representative should resubmit the entire package with the requested information by the response date indicated above. PLEASE ALSO INCLUDE A COPY OF THIS LETTER WHEN YOU RESUBMIT YOUR PLAN.
3
(Automatic) 		 If you return a complete and correct application by the response date indicated above, we will use the original submission date for purposes of determining the remedial amendment period under Internal Revenue Code section 401(b). However, the 270-day period specified in section 7476(b) of the Code (relating to declaratory judgements) will not begin until we receive your complete and correct application.
4
(Automatic) 		 User fees (if applicable) are not refundable for requests that are returned to the submitter as incomplete. If you resubmit the request by the response date indicated above, no additional payment will be due. However, if you resubmit your request after that date, another user fee (if applicable) is required.
5
(Automatic) 		 Compliance fees (if applicable), paid pursuant to Revenue Procedure 2003-72, will be refunded if you fail to provide a complete application package by the response date indicated above.
6
(Automatic) 		 If you have questions concerning this matter, please contact the person whose name and telephone number are shown above.
3000–3999
(Selective) 		 Please mail the information requested in the attached List of Missing Items to the following address:
(Addresses and instructions for use of these paragraphs to be provided by the EP-DCSC Office).
5998
(Selective) 		 We have sent a copy of this letter to your representative as indicated in your Power of Attorney.
5999
(Automatic) 		 Thank you for your cooperation.
Sincerely yours,
8500
(Automatic) 		 Robert P. Bell
Manager, EP Determinations
8000
(Automatic) 		 Response Date:
8501
(Automatic) 		Enclosures:
List of Missing Items
Application

Exhibit 7.13.5-4  (03-01-2006)
Letter 1196 (DO/CG)
First Request for Additional Information

EDS
Paragraph
Numbers 		Text
  Employer Identification Number:
  DLN:
  Person to Contact:
  ID#:
  Contact Telephone Number:
  Plan Name:
  Plan Number:
[Salutation]  
1
(Automatic) 		 We have received your request for a determination letter for the plan identified above. However, we need the information or amendments specified on the enclosed list before we can continue processing your request.
2
(Automatic) 		 Please submit the requested information or amendments by the response date. If we do not hear from you by that date we may either (1) close your case as incomplete, or (2) process your application on the basis of the information available, which could result in a determination that your plan is not qualified for favorable tax treatment.
3
(Selective) 		 The 270-day period specified in section 7476 of the Internal Revenue Code (relating to declaratory judgments) will not begin until we receive the requested information. However, if you return the requested information within 30 days from the date of this letter, we will use the original submission date for purposes of determining the remedial amendment period for this plan.
4
(Selective) 		 User fees are not refundable for requests that are closed as incomplete. If you resubmit the request after it is closed but within 90 days from the date of this letter, no additional payment will be due. However, if you resubmit your request more than 90 days after the date of this letter another user fee payment is required.
5
(Automatic) 		 If you have any questions concerning this matter or cannot meet the response date, please contact the person whose name and telephone number are shown above. When you send any information we requested or if you write to us with questions about this letter, please provide your telephone number and the most convenient time for us to call if we need more information.
3000–3999
(Selective) 		 Please mail the information requested in this letter to the following address:
(Addresses and instructions for use of these paragraphs to be provided by the EP-DCSC Office).
5998
(Selective) 		 We have sent a copy of this letter to your representative as indicated in your Power of Attorney.
5999
(Automatic) 		 Thank you for your cooperation.
Sincerely yours,
8500
(Automatic) 		Employe Plans Specialist
8000
(Required) 		Refer Reply to:
[20V]
8001
(Required) 		Response Date:
[20V]
8500
(Automatic) 		Employee Plans Specialist
8501
(Automatic) 		Enclosure:
List of Data Needed

Exhibit 7.13.5-5  (03-01-2006)
Letter 1955 (DO/CG)
Second and Subsequent Request for Additional Information

EDS
Paragraph
Numbers 		Text
  Employer Identification Number:
  DLN:
  Person to Contact:
  ID#:
  Contact Telephone Number:
  Plan Name:
  Plan Number:
[Salutation]  
1
(Automatic) 		 Thank you for the information you recently furnished about the plan identified above. Unfortunately, we need additional information before we can complete the processing of your request for a determination letter. Please furnish the information or amendments indicated on the enclosed list.
2
(Automatic) 		 Please submit the requested information or amendments by the response date. If we do not hear from you by that date we may either (1) close your case as incomplete, or (2) process your application on the basis of the information available, which could result in a determination that your plan is not qualified for favorable tax treatment.
3
(Automatic) 		 If you have any questions concerning this matter, or cannot meet the response date, please contact the person whose name and telephone number are shown above. When you send any information we requested or if you write to us with questions about this letter, please provide your telephone number and the most convenient time for us to call if we need to contact you.
3000–3999
(Selective) 		 Please mail the information requested in this letter to the following address:
(Addresses and instructions for use of these paragraphs to be provided by the EP-DCSC Office).
5998
(Selective) 		 We have sent a copy of this letter to your representative as indicated in your Power of Attorney.
5999
(Automatic) 		 Thank you for your cooperation.
Sincerely yours,
8500
(Automatic) 		Employee Plans Specialist
8501
(Automatic) 		Enclosures:
List of Data Needed

Exhibit 7.13.5-6  (03-01-2006)
Letter 1197 (DO/CG)
Ten-Day Letter

EDS
Paragraph
Numbers 		Text
  Employer Identification Number:
  DLN:
  Person to Contact:
  ID#:
  Contact Telephone Number:
  Plan Name:
  Plan Number:
  Refer Reply to:
  Previous Contact Date:
[Salutation]  
1
(Automatic) 		 We asked you on the above date to furnish information about your request for a determination letter for the plan identified above.
2
(Automatic) 		 We need the amendments and the information specified on the enclosed list to determine whether your plan meets certain Internal Revenue Code and Department of Labor requirements.
3
(Automatic) 		 Please send the requested material within 10 days from the date of this letter so we may complete consideration of your application. If we do not hear from you within that time, we will process your application based on the information you have already supplied us. This could result in a determination that your plan is not qualified for favorable tax treatment.
4
(Automatic) 		 If you have any questions concerning this matter, please contact the person whose name and telephone number are shown above. When you send the information we requested or if you write with questions about this letter, please provide your telephone number and the most convenient time for us to call if we need to contact you.
3000–3999
(Selective) 		 Please mail the information requested in this letter to the following address:
(Addresses and instructions for use of these paragraphs to be provided by the EP-DCSC Office).
5998
(Selective) 		 We have sent a copy of this letter to your representative as indicated in your Power of Attorney.
5999
(Automatic) 		 Thank you for your cooperation.
Sincerely yours,
8500
(Automatic) 		 Robert P. Bell
Manager, EP Determinations
8501
(Automatic) 		Enclosures:
List of Data Needed

Note:

Paragraphs 8000 and 8001 are required for the 1197 letter. Paragraph 8000 information should include information for the "Refer Reply to:" from the header of the letter. Paragraph 8001 should include information for the "Previous Contact Date" from the header of the letter.

Exhibit 7.13.5-7  (03-01-2006)
Letter 1938 (DO/CG)
EP Suspense Letter

EDS
Paragraph
Numbers 		Text
  Employer Identification Number:
  DLN:
  Person to Contact:
  ID#:
  Contact Telephone Number:
  Plan Name:
  Plan Number:
[Salutation]  
1
(Selective) 		 We regret that a delay has developed in our consideration of your case. We are waiting for instructions from our Washington D. C. Office. We will advise you when we resume action on your case.
2
(Selective) 		 We regret that a delay has developed in our consideration of your case. We are waiting for a decision by the Court on a similar issue in another case. We will advise you when we resume action on your case.
3
(Selective) 		 We regret that a delay has developed in our consideration of your case. We are waiting for related information from another area office. We will advise you when we resume action on your case.
5998
(Selective) 		 We have sent a copy of this letter to your representative as indicated in your Power of Attorney.
5999
(Automatic) 		 If you have any questions concerning this matter, please contact the person whose name and telephone number are shown above.
Sincerely yours,
8500
(Automatic) 		 Employee Plans Group Manager

Exhibit 7.13.5-8  (03-01-2006)
Letter 1755 (DO/CG)
EP Proposed Adverse Letter

EDS
Paragraph
Numbers 		Text
  Employer Identification Number:
  DLN:
  Person to Contact:
  ID#:
  Contact Telephone Number:
  Plan Name:
  Plan Number:
[Salutation]  
1
(Selective) 		 We have made a proposed de