7.11.8  EP Determinations Closing Agreement Program

Manual Transmittal

March 07, 2014

Purpose

(1) This transmits revised IRM 7.11.8, Employee Plans Determination Letter Program, EP Determinations Closing Agreement Program.

Material Changes

(1) IRM 7.11.8.2.2, Determining Sanction Amount and Correction was modified to reflect the new sanction amounts provided in Rev. Proc. 2013-12.

(2) IRM 7.11.8.2.3, Preparing the Draft Closing Agreement was modified and IRM 7.11.8.2.4, Preparing the Closing Agreement for Issuance removed to show that the taxpayer will send the signed closing agreement, sanction, and operational compliance statement to the specialist's closing agreement coordinator, not the specialist.

(3) IRM 7.11.8.2.4, Preparing the Case for Closing was renumbered from IRM 7.11.8.2.5 because of the deletion of the prior section.

(4) Added the following exhibits to show samples of the correspondence between the Service and taxpayer: Exhibit 7.11.8-2, Plan Document Failure Worksheet, Exhibit 7.11.8-3, Closing Agreement Offer Letter, Exhibit 7.11.8-5, Draft Closing Agreement Cover Letter, Exhibit 7.11.8-6, Draft 10-day Letter, Exhibit 7.11.8-7, Closing Agreement Cover Letter, Exhibit 7.11.8-8, Letter 1595, Exhibit 7.11.8-9, Closing Agreement 10-day Letter. Also moved Exhibit 7.11.8-2, Example - Operational Compliance Statement to Exhibit 7.11.8-4 to organize exhibits in the order that they are mentioned in the IRM.

Effect on Other Documents

This supersedes IRM 7.11.8, EP Determinations Closing Agreement Program dated January 10, 2012.

Audience

Tax Exempt and Government Entities (TE/GE) Employee Plans Personnel

Effective Date

(03-07-2014)

Robert Choi
Director, Employee Plans
Tax Exempt and Government Entities

7.11.8.1  (03-07-2014)
EP Determinations Closing Agreements Overview

  1. These procedures are applicable to closing agreements written with respect to qualification defects discovered during an analysis of a determination letter application. The EP Determinations Closing Agreement Program is used to bring a plan with document failures back into compliance.

  2. These procedures provide guidance to EP specialists on the procedures for preparing a closing agreement signed by the Manager, EP Determinations Quality Assurance. EP specialists consult with a closing agreement coordinator when processing a closing agreement. EP closing agreement coordinators in EP Determinations are responsible for reviewing the operations of the program and report to the Manager, EP Determinations Quality Assurance.

  3. If, during the review of a determination letter application, a specialist finds a Qualification Failure as described in Rev. Proc. 2013-12, 2013-1 IRB 313, effective for applications received after April, 1, 2013, the taxpayer has an opportunity to correct the failure(s). See IRM 7.2.2, Employee Plans Compliance Resolution System (EPCRS).

7.11.8.2  (03-07-2014)
Processing a Closing Agreement

  1. The steps involved in processing a closing agreement are as follows:

    1. Prepare case for the closing agreement process.

    2. Determine the sanction amount and correction.

    3. Prepare the draft closing agreement.

    4. Prepare the case for closing.

  2. Most of these steps are handled by the specialist, in conjunction with their group manager and closing agreement coordinator.

  3. EP Determinations is divided into two areas. Each area has a closing agreement coordinator. The specialist should consult with the group manager for assistance in locating the correct coordinator.

7.11.8.2.1  (03-07-2014)
Preparing the Case for the Closing Agreement Process

  1. When determining whether a case meets the requirements for a closing agreement, take the following steps:

    1. Address all other issues to completion before preparing the closing agreement.

    2. Ensure the issue involves a Qualification Failure, as described in Rev. Proc. 2013-12.

    3. Fully research and develop all issues subject to the proposed closing agreement.

    4. Consult with group manager and, if appropriate, the area closing agreement coordinator for the determinations group to determine if closing agreement is necessary.

    5. Taxpayers may protect their eligibility to enter into the Voluntary Correction Program (VCP) through the disclosure of an issue in their determination letter application. In order to make the disclosure effective, the taxpayer must submit a cover letter containing specific details regarding defect, plan section impacted and the relief sought.

    6. Complete and e-mail a Plan Document Failure Worksheet to the closing agreement coordinator with a carbon copy (cc) to group manager. Use secure messaging when sending by e-mail.

      Note:

      Note: The subject line of the e-mail should NOT contain any personally identifiable information (PII) such as the taxpayer or plan name.

      Note:

      See Exhibit 7.11.8-2, Plan Document Failure Worksheet for an example. Blank Plan Document Failure Worksheets are available in Portable Document Format (PDF) on the shared server in the folder labelled "Closing Agree." Please be sure to use the most current version.

  2. If the specialist discovers additional qualification failures for a plan that received a Compliance Statement under VCP, the specialist must:

    1. Secure managerial approval and contact their closing agreement coordinator before continuing.

    2. Verify that the taxpayer is willing to correct the additional issue. (Possible sanctions are not discussed at this time.)

    3. Prepare and forward the document failure worksheet to the closing agreement coordinator. Clearly indicate that the case involves an additional failure not addressed in the VCP Compliance Statement.

    4. Provide a copy of the Compliance Statement and if applicable, Form 2848, Power of Attorney and Declaration of Representative.

      Note:

      The closing agreement coordinator will coordinate with VC to address the additional failure.

  3. If the issue is an Operational Failure, as defined in Rev. Proc. 2013-12 that involves a year for which the statue of limitations has not expired, a referral to EP Examinations is required. The specialist will complete a Form 5666, TE/GE Referral Information Report and forward the referral to the EP Classifications Unit at the following address:

    Internal Revenue Service
    EP Classification Unit
    9350 Flair Drive
    El Monte, CA 91731-2828

  4. After receiving managerial approval and consulting with the closing agreement coordinator, the specialist must inform the taxpayer of the findings and the potential need for a closing agreement.

    1. Contact the taxpayer or Power of Attorney (POA) via telephone or letter to describe the process. See Exhibit 7.11.8-3, Closing Agreement Offer Letter.

      Note:

      Blank Closing Agreement Offer Letters are available in PDF on the shared server in the folder labeled "Closing Agree."

    2. Explain that to start the process, the taxpayer must agree to enter the EP Determinations Closing Agreement Program. If the taxpayer verbally agrees to enter into a closing agreement, the specialist should document the taxpayer's agreement in the case file.

7.11.8.2.2  (03-07-2014)
Determining Sanction Amount and Correction

  1. The specialist must take the following actions when determining the sanction amount and correction:

    1. For nonamender cases, secure a corrective amendment (if the taxpayer has not already amended the plan).

    2. For all other cases, consult the closing agreement coordinator for the respective area regarding the appropriate correction method. Refer to the EPCRS revenue procedure, Rev. Proc. 2013-12, for some common correction methods in Appendices A and B.

  2. A sanction is imposed for nonamender failures. See section 14.04 of Rev. Proc. 2013-12, for the sanction schedule, listed in the table below. See Exhibit 7.11.8-1, Acronyms for Recent Laws for definitions.

    # of Participants Employer’s 2nd 5 or 6 year Remedial Amendment Cycle Employer’s 1st 5 or 6 year Remedial Amendment Cycle GUST/401(a)(9) Regs UCA/OBRA '93 TRA '86 T/D/R ERISA
    20 or fewer $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 $5,500
    21-50 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 $11,000
    51-100 $7,500 $9,000 $10,500 $12,000 $13,500 $15,000 $16,500
    101-500 $12,500 $15,000 $17,500 $20,000 $22,500 $25,000 $27,500
    501-1,000 $17,500 $21,000 $24,500 $28,000 $31,500 $35,000 $38,500
    1,001-5,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 $55,000
    5,001-10,000 $32,500 $39,000 $45,500 $52,000 $58,500 $65,000 $71,500
    Over 10,000 $40,000 $48,000 $56,000 $64,000 $72,000 $80,000 $88,000

    Note:

    A Plan that is a late or nonamender for a required interim amendment, as defined in section 5.02 of Rev. Proc. 2007-44, 2007-28 IRB 54, that was timely submitted by the end of its Remedial Amendment Cycle (RAC) will receive a 60% reduction of the listed sanction for the Plan's current RAC. The interim amendment must pertain to the Plan's current Cumulative List for the reduction to apply. The reduction does not apply to late or nonamender issues for prior cycles. If a Plan was timely submitted within its 1st RAC and is a nonamender for either 1994 Group Annuity Reserving Table (GAR) or IRC 401(a)(9), the Plan will receive a 60% reduction of the listed GUST / 401(a)(9) sanction.

  3. The sanctions listed in the table above are subject to the following caveats:

    IF AND THEN
    a. the last favorable determination letter (LFDL) is contingent on the taxpayer adopting a proposed amendment, the taxpayer fails to adopt the amendment within 91 days after the issuance of the LFDL, they are deemed to be a nonamender.
    b. the failure involves a proposed amendment caveated on the LFDL, which is adopted after 91 days but prior to 180 days, the sanction will be $1,000, regardless of the number of participants.
    c. the proposed amendment is adopted after 180 days from the issuance of the LFDL,   consult with the closing agreement coordinator to determine the proper sanction amount.

  4. For nonamender failures, the sanction amounts are not cumulative (use only the highest amount on the sanction schedule). Nonamender sanction amounts are generally not negotiable. However, if the tax exposure is less than the sanction amount or the taxpayer can prove undue financial hardship, reduction of the sanction will be considered. The specialist should gather the facts and present them to the closing agreement coordinator for a sanction reduction evaluation.

  5. For failures other than nonamender failures, the sanction will be based upon the calculated maximum payment amount (MPA). To calculate the MPA, the specialist will need to determine:

    1. Which tax years have an open statute of limitations.

    2. The taxpayer's Form 1120, U.S. Corporate Income Tax Return tax exposure for all years for which the statue of limitations has not expired.

    3. The highly compensated employees (HCE's) Form 1040, U.S. Individual Income Tax Return tax exposure for all years for which the statue of limitations has not expired.

    4. The potential liability to the trust if taxes are payable with the Form 1041, U.S. Income Tax Return for Estates and Trusts for all years for which the statue of limitations has not expired.

      Note:

      A tax estimation worksheet is located on the shared server in the folder labelled "Closing Agree."

  6. After calculating the MPA, the specialist will submit the following to the closing agreement coordinator:

    1. The MPA calculations.

    2. A summary of the pertinent issues.

    3. Any mitigating factors submitted by the taxpayer.

    4. Any corrective actions already taken by the taxpayer.

  7. The closing agreement coordinator will provide the specialist with a sanction range. The specialist is responsible for the sanction negotiation.

7.11.8.2.3  (03-07-2014)
Preparing the Draft Closing Agreement

  1. Once an agreement on the sanction amount has been reached, the specialist must prepare the draft closing agreement. When preparing the closing agreement, clearly state the issue so as to lead to only one interpretation.

    Note:

    Sample draft closing agreements are available on the shared server in the folder labelled "Closing Agree." These templates may be used as a starting point. The specialist must make a reasonable, good faith effort to fully prepare these documents.

  2. When the draft is complete, the specialist must e-mail the following documents to the closing agreement coordinator with manager carbon copied (cc):

    1. The draft closing agreement.

    2. The draft operational compliance statement for any issue involving an untimely amendment. (See example located in Exhibit 7.11.8-4, Example - Operational Compliance Statement. Other examples are located on the shared server).

      Note:

      The subject line of the e-mail should NOT contain any personal identifiable information (PII) such as the taxpayer or plan name. Send all e-mails by secure messaging.

  3. The closing agreement coordinator will review the draft closing agreement and operational compliance statement and return to the specialist with suggested changes, if necessary.

  4. The specialist will then send the draft closing agreement approved by the closing agreement coordinator to the taxpayer/POA using the Draft Closing Agreement Cover Letter in Exhibit 7.11.8-5. Any deviation from the draft closing agreement must be approved by the closing agreement coordinator.

    Note:

    Blank Draft Closing Agreement Cover Letters are available in PDF on the shared server in the folder labelled "Closing Agree."

    Note:

    If the taxpayer/POA has not responded within a reasonable time to the draft, you may use the Draft 10-day Letter, Exhibit 7.11.8-6, with managerial approval.

  5. Once the taxpayer/POA and closing agreement coordinator are in agreement on the wording of the closing agreement, and the specialist has documented the case file to reflect the taxpayer/POA agreement, the specialist will forward the following to the taxpayer/POA:

    1. Closing Agreement Cover Letter. See Exhibit 7.11.8-7.

    2. Three copies of the final closing agreement.

    3. Operational compliance statement.

    Note:

    A sample Closing Agreement Cover Letter can be found on the shared server in the folder labelled "Closing Agree."

    Note:

    The return address for the cover letter must be the direct address of the Closing Agreement Coordinator. The specialist must explain to the taxpayer/POA that the signed closing agreement, sanction (in the form of a certified or cashiers check), and operational compliance statement must be returned to the closing agreement coordinator (address below) and must not be returned to the Covington, KY address or the specialist. This applies to all cases including cases completed on Tax Exempt Determination System (TEDS).

    IRS TE/GE - EP QAS
    c/o [Applicable Area Closing Agreement Coordinator]
    550 Main Street, Room 7008
    Cincinnati, OH 45202

  6. The specialist must prepare a Letter 1595, Exhibit 7.11.8-8, for the taxpayer with a cc: to all POAs authorized to receive correspondence, including the POA's complete address. Alternatively, the specialist may prepare separate letters for the taxpayer and each POA authorized to receive correspondence. E-mail the Letter 1595 via secure e-mail to the Closing Agreement Coordinator, ensuring PII is not on the subject line.

    Note:

    A blank Letter 1595 is available on the shared server in the folder labelled "Closing Agree."

    Note:

    If the taxpayer/POA has not responded within a reasonable time to the final closing agreement, contact your closing agreement coordinator to make sure the package was not received. If the coordinator confirms the package was not received, you may use the Closing Agreement 10-day Letter, Exhibit 7.11.8-9, with managerial approval.

  7. The specialist should also forward a copy of Form 2848 if there has been a change in the POA and this information is not otherwise available on TEDS.

7.11.8.2.4  (03-07-2014)
Preparing the Case for Closing

  1. Once a complete and accurate closing agreement package has been received by the coordinator, the Manager, EP Determinations Quality Assurance, will sign all three original closing agreements.

  2. EP Determinations Quality Assurance staff will take the following steps:

    1. If the case is open on TEDS, a copy of the closing agreement is faxed to TEDS. If the case is not open on TEDS, send a copy to the specialist via fax or interoffice mail, depending on the specialist's location.

    2. Keep one of the fully executed (original) closing agreement for their files.

    3. Mail one of the original documents to the Deposit Unit at the Covington Campus, with the cashier or certified check.

    4. Mail the third original document to the Taxpayer/POA for their records.

  3. If the copy is faxed to TEDS, the specialist must move all closing agreement documents to the nondisclosable folder prior to closing the case on TEDS. The specialist must print out copies of the scanned closing agreements to associate with the case in Federal Records.

  4. Upon receipt of the file copy, the specialist may continue to process the case under the normal procedures.

7.11.8.3  (03-07-2014)
Miscellaneous Issues

  1. The following situations may affect the issuance of a closing agreement:

    1. Withdrawal of a determination letter request.

    2. Request for relief under the Voluntary Correction Program (VCP).

    3. Discovery of additional plan failures.

  2. If the taxpayer elects to withdraw its determination application instead of entering into a closing agreement, the specialist should notify the closing agreement coordinator of the withdraw via a secure e-mail and follow the withdrawal procedures in IRM 7.11.1.20, Withdrawal of Applications.

    Note:

    Always add caveat 10 to the 2044 letter.

Exhibit 7.11.8-1 
Acronyms for Recent Laws

Acronym Definition of Acronym
The Employer’s 2nd 5 or 6 year RAC Includes all provisions on the 2010 through the 2014 Cumulative Lists.
The Employer’s 1st 5 or 6 year RAC Includes the Economic Growth and Tax Relief Reconciliation Act of 2001 (“EGTRRA”) and all provisions on the 2004 through the 2009 Cumulative Lists.
401(a)(9) Regs Final and temporary regulations under § 401(a)(9), 74 FR 18987, published on April 17, 2002
GUST Uruguay Round Amendments Act (GATT), Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA), Small Business Job Protection Act (SBJPA), Taxpayer Relief Act of 1997 (TRA '97), Internal Revenue Service Restructuring and Reform Act of 1998, and Community Renewal Relief Act of 2000 (CRA)
UCA/OBRA '93 Unemployment Compensation Act of 1992 / Omnibus Budget Reconciliation Act of 1993
TRA '86 Tax Reform Act of 1986
T/D/R Tax Equity and Fiscal Responsibility Act of 1983 (TEFRA)/ Deficit Reduction Act of 1984 (DEFRA)/ Retirement Equity Act of 1984 (REA) together (T/D/R)
ERISA Employee Retirement Income Security Act of 1974.

Exhibit 7.11.8-2 
Plan Document Failure Worksheet

CLOSING AGREEMENT
PLAN DOCUMENT FAILURE WORKSHEET
Specialist Name: Group No.:
SEID:
Phone No.: Fax No.:
Date the issue was discussed with the manager and received managerial approval to pursue a closing agreement:  
PLAN INFORMATION
 
1. Name of Sponsor/Employer:    
2. Address of Sponsor/Employer:    
3. Name of POA:    
4. Address of POA:    
5. Phone Number of POA:    
6. EIN of Sponsor/Employer:    
7. EDS Case Number:    
8. Name of Plan:    
9. Plan Number:    
10. Type of Plan:    
11. Plan Year End: / Tax Year End:    
12. Application Form Number:
(Check one)
   
13. Revocation Basis:
(select the applicable answer)
5300 5307 5310  
14. Total Maximum Amount
(or Amount per Fixed Fee Schedule):
Form Operational Both  
15. Number of Participants:    
Issue Summary (include all relevant facts and circumstances including any reduction to the Fixed Fee Schedule for interim amendments):  
   
 
 
Proposed Corrections:  
   
 
 

Exhibit 7.11.8-3 
Closing Agreement Offer Letter

Internal Revenue Service Department of the Treasury
   
Date: Person to Contact / ID number:
  Contact Telephone Number:
(Insert Address) Plan Name and Number:
Refer Reply to:
   
Dear Sir or Madam:  
 During our review of a determination letter application filed for the above plan, we noted that your plan was not amended on or before the expiration of the applicable remedial amendment period under section 401(b) of the Internal Revenue Code (the Code) to comply with the provisions listed on the attachment.
 
 Since appropriate amendments were not adopted within the applicable remedial amendment period, your plan is no longer in compliance with the qualification requirements of section 401(a) of the Code. In order to avert disqualification of your plan, we are offering to enter into a closing agreement under section 7121 of the Code to resolve the failure to timely amend your plan for the items listed on the attachment. The closing agreement process will require you to: 1) execute triplicate copies of a closing agreement document which confirms that the Internal Revenue Service will treat your plan as timely amended for the provisions listed on the attachment; 2) pay a nonnegotiable cash sanction to the U.S. Treasury for the amount listed on the attachment; and 3) certify that the plan was operated in accordance with the provisions listed on the attachment for the period in which the form of the plan was not in compliance with these statutory and regulatory requirements.  
 If you have any questions, please contact the person whose name and telephone number are shown above.  
     
  Sincerely yours,  
  Employee Plans Specialist  
Enclosure: Attachment    
cc:    

Exhibit 7.11.8-4 
Example - Operational Compliance Statement

“The [Profit Sharing/Defined Benefit/Money Purchase/Cash Balance] Plan of [Employer Z] was operated in compliance with the requirements of the final and temporary regulations under section 401(a)(9) of the Code relating to minimum required distributions for the period January 1, ---------, 2003 (or first day of 2003 plan year if operating on fiscal year) -(enter date of adoption of 401(a)(9) amendment).]
___________________________________________
Employer Date

Exhibit 7.11.8-5 
Draft Closing Agreement Cover Letter

Internal Revenue Service Department of the Treasury
   
Date: Person to Contact / ID number:
  Contact Telephone Number:
(Insert Address) Plan Name and Number:
Refer Reply to:
   
Dear Sir or Madam:  
 Enclosed is the draft of the closing agreement and, if applicable, an operational compliance statement containing the terms and requirements previously discussed with you. If you agree that the drafts correctly reflect our discussions, please contact the Employee Plans Specialist at the above-listed telephone number. Copies will then be sent for your signature subject to compliance with terms stated therein.
 
 If you have any questions as to the draft, please contact the person whose name and telephone number are shown above to discuss.  
 Thank you for your cooperation.  
     
  Sincerely yours,  
  Employee Plans Specialist  
Enclosure: Draft closing agreement    
cc:    

Exhibit 7.11.8-6 
Draft 10-day Letter

Internal Revenue Service Department of the Treasury
   
Date: Person to Contact / ID number:
  Contact Telephone Number:
(Insert Address) Plan Name and Number:
Employer Identification Number:
Refer Reply to:
   
Dear Sir or Madam:  
 During our review of a determination letter application filed for the above plan, we noted that your plan was not timely amended to comply with the provisions listed on the attachment.
 
 Since appropriate amendments were not adopted within the applicable remedial amendment period, your plan is no longer in compliance with the qualification requirements of section 401(a) of the Code. In order to avert disqualification of your plan, we offered to enter into a closing agreement under section 7121 of the Code to resolve the failure to timely amend your plan for the items listed on the attachment. On MM-DD-YYYY, we sent you a draft of the closing agreement document and, if applicable, an operational compliance statement. You have not indicated approval of the draft closing agreement and, if applicable, operational compliance statement.  
 Please indicate whether or not you approve the documents within 10 days from the date of this letter so we may continue the closing agreement process. If we do not hear from you within that time, we may 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.  
 If you have any questions, please contact the person whose name and telephone number are shown above.  
     
  Sincerely yours,  
  Employee Plans Specialist  
Enclosure: Attachment    
cc:    

Exhibit 7.11.8-7 
Closing Agreement Cover Letter

Internal Revenue Service Department of the Treasury
   
Date: Person to Contact / ID number:
  Contact Telephone Number:
  Plan Name and Number:
(Insert Address) Employer Identification Number:
Mailing address for signed closing agreement package:
IRS, TE/GE, Employee Plans, Quality Assurance
Attn: (Insert Coordinators Name)
550 Main St., Room 7008
Cincinnati, OH 45202
   
Dear Sir or Madam:  
 Enclosed, in triplicate, is the closing agreement and, if applicable, an operational compliance statement, containing the terms and requirements previously discussed. Each party to the agreement should sign and date each copy of the closing agreements. The signature must be that of the named employer unless a Form 2848 has been submitted specifically conferring signatory authority for closing agreements. All corrective actions must be made prior to the execution of the closing agreement.
 
 Please submit the following items to the above mailing address:
 1. Sanction payment, if required by the closing agreement, made payable to the U.S. Treasury by certified or cashier check(s);
 2. The signed closing agreement, in triplicate; and,
 3. The signed operational compliance statement, if applicable.
 
 Failure to submit all items to the above address will result in significant delays in processing your closing agreement.  
 If you have any questions, please contact the Employee Plans Specialist at the above listed telephone number.  
     
  Sincerely yours,  
  Employee Plans Specialist  
Enclosure: Closing Agreements    
cc:    

Exhibit 7.11.8-8 
Letter 1595

Internal Revenue Service Department of the Treasury
P. O. Box 2508
Cincinnati, OH 45201
   
Date: Person to Contact / ID number:
  Contact Telephone Number:
(Insert Address) Plan Year(s) beginning:
Name of Plan:
Plan Number:
Taxpayer Identification Number:
   
Dear Sir or Madam:  
 We have approved and signed the closing agreement you submitted pertaining to the qualification of the plan identified above for the period(s) shown. The enclosed copy of the agreement is for your records.
 
 Thank you for your cooperation.  
     
  Sincerely yours,  
  Manager, EP Determinations
Quality Assurance
 
Enclosure: Copy of the closing agreement    
cc:    

Exhibit 7.11.8-9 
Closing Agreement 10-day Letter

Internal Revenue Service Department of the Treasury
   
Date: Person to Contact / ID number:
  Contact Telephone Number:
  Plan Name and Number:
(Insert Address) Employer Identification Number:
Mailing address for signed closing agreement package:
IRS, TE/GE, Employee Plans, Quality Assurance
Attn: 550 Main St., Room 7008
Cincinnati, OH 45202
   
Dear Sir or Madam:  
 During our review of a determination letter application filed for the above plan, we noted that your plan was not timely amended to comply with the provisions listed on the attachment.
 
 Since appropriate amendments were not adopted within the applicable remedial amendment period, your plan is no longer in compliance with the qualification requirements of section 401(a) of the Code. In order to avert disqualification of your plan, we offered to enter into a closing agreement under section 7121 of the Code to resolve the failure to timely amend your plan for the items listed on the attachment. On MM-DD-YYYY, we sent you triplicate copies of a closing agreement document and, if applicable, an operational compliance statement. You have not returned the executed triplicate copies of the closing agreement document, the required sanction and, if applicable, the executed operational compliance statement.  
 Please send the requested material within 10 days from the date of this letter so we may complete the closing agreement process. If we do not hear from you within that time, we may 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.  
 If you have any questions, please contact the person whose name and telephone number are shown above.  
     
  Sincerely yours,  
  Employee Plans Specialist  
Enclosure: Attachment    
cc:    

More Internal Revenue Manual