7.13.5 Letter Generation

Manual Transmittal

November 18, 2021

Purpose

(1) This transmits revised IRM 7.13.5, Employee Plans Automated Processing Procedures, Letter Generation.

Material Changes

(1) IRM 7.13.5.1.2 (1) was updated to change the reference for Delegation Order 7-1 from IRM 1.2.46.2.1 to IRM 1.1.2.2.8.1.

(2) Updated Exhibit 7.13.5-1 to add links to forms in the Repository.

(3) Updated throughout for plain language and current Revenue Procedures.

Effect on Other Documents

This supersedes IRM 7.13.5 dated October 7, 2019 and incorporates and supersedes Interim Guidance TEGE-04-0221-0003.

Audience

Tax Exempt and Government Entities
Employee Plans

Effective Date

(11-18-2021)

Eric D. Slack
Director, Employee Plans
Tax Exempt and Government Entities

Program Scope and Objectives

  1. Purpose: This IRM describes the procedures and guidelines for creating closing letters in the Forms/Pubs/Products Repository.

  2. Audience: Employee Plans (EP) Determinations and Quality Assurance (QA) staff

  3. Program Owner: EP

  4. Program Goals: The goal of EP Determinations is to ensure that plans are in compliance with the tax laws by reviewing applications for determination and advisory letters, and to protect the public interest by applying the tax law with integrity and fairness to all.

Background

  1. All letters to develop cases are in the Forms/Pubs/Products Repository.

  2. See Exhibit 7.13.5-1, List of All EP Determinations Letters (When to Use and Where to Access), for a complete list of letters and a description of when to use each one.

  3. The Forms/Pubs/Products Repository operates using letter and paragraph numbers. Each letter consists of one or more of the following types of paragraphs:

    Type of Paragraph Description
    Automatic
    • Automatically included in the letter

    Required
    • Add them to a letter by checking the applicable paragraph number(s) and entering any required variable information in the repository letter.

    Selective
    • You may add them to a letter by checking the box of the paragraph number(s) on the Repository Letter with any variable information.

    • Selective paragraphs not listed are created as an addendum to the letter. All other selective paragraphs print in the body of the letter.

      Note:

      Add “Addendum” to the letter when you include an addendum as an enclosure.

    Customized
    • If used, you are required to use the applicable addendum and type the entire paragraph. They are included as an enclosure to the letter.

       

      Note:

      Always add “Addendum” to the letter when you add a customized paragraph.

     
    • To create customized paragraphs, create applicable addendum from the version on the Emplane Shared Server. Don’t indent the paragraphs.

    • Consult your manager or contact QA before adding an addendum on a closing letter unless the situation is described in IRM 7.11.5, Proper Use of Determination Letter Caveats.

Authority

  1. Delegation Order 7-1, delegates the authority to issue Determination Letters (DL) on the qualified status of pension, profit-sharing, stock bonus, annuity, and employee stock ownership plans to the Director, EP. IRM 1.1.2.2.8.1.

  2. A complete list of delegation orders governing EP Rulings and Agreements can be found at http://www.irs.gov/uac/Delegation-Orders-by-Process1.

  3. See IRM 7.1.1, Exhibit 7.1.1-1 for a complete list of the major EP revenue procedures currently in effect.

Acronyms

  1. The table lists commonly used acronyms and their definitions.

    Acronym Definition
    DL Determination Letter
    EP Employee Plans
    EDS EP/EO Determination System
    IDRS Integrated Data Retrieval System
    QA Quality Assurance
    RAC Remedial Amendment Cycle
    TEDS Tax Exempt Determination System

Entity Information

  1. Input entity information via the enclosed Form 53XX and Form 2848/8821 (if applicable).

Signature & Date

  1. All letters must contain a signature. You may digitally stamp letters with the appropriate signature.

  2. Date is electronically added with the date the case is closed.

List of All EP Determinations Letters (When to Use and Where to Access)

Letter Number Title Description/When to Use Where to Access
835
(DO/CG)
Favorable Determination Letter DL for laws effective prior to the Economic Growth And Tax Relief Reconciliation Act of 2001 (EGTRRA). Obsolete. Forms/Pubs/Products Repository.
1012
(DO/CG)
Returning Incomplete EP Applications Return incomplete; Contact made and no refund issued.

Note:

Use for cycle D2, 2nd cycle DB 5307, and earlier cases. Replaced by Letter 5535 or 5536 for E2 and later cases and terminations received on or after 2-1-15.

Forms/Pubs/Products Repository.
1013
(DO/CG)
Returning Application Substantially Deficient – Application Rejected Return incomplete; No contact made - user fee may or may not be refunded.

Note:

Use for cycle D2, 2nd cycle DB 5307, and earlier cases. Replaced by Letter 5535 or 5536 for E2 and later cases and terminations received on or after 2-1-15.

Forms/Pubs/Products Repository.
1015
(DO/CG)
Returning Incomplete EP Applications Return incomplete; No contact made - user fee is refunded.

Note:

Use for cycle D2, 2nd cycle DB 5307, and earlier cases. Replaced by Letter 5535 or 5536 for E2 and later cases and terminations received on or after 2-1-15.

Forms/Pubs/Products Repository.
1132
(DO/CG)
Favorable Determination Letter - Termination of Plan Favorable DL for plan terminations (Form 5310). Forms/Pubs/Products Repository.
1196
(DO/CG)
Information Request First request for information. Forms/Pubs/Products Repository
1197
(DO/CG)
Employee Plan Determination 10-Day Follow-up No response to first or subsequent requests; Managerial approval required. Forms/Pubs/Products Repository
1399
(DO/CG)
Requesting Technical Advice on Employee Benefit Plan Sent to plan sponsor for final comment on proposed statement of issues and facts before case is sent to Associate Chief Counsel for tech advice. Forms/Pubs/Products Repository
1520
(DO/CG)
Favorable for Group Trust Arrangement Favorable DL for trust ruling only (Form 5316). Forms/Pubs/Products Repository.
1724
(DO/CG)
Final Adverse - (No Appeal Requested) Final Adverse DL when no appeal is requested. Forms/Pubs/Products Repository.
1755
(DO/CG)
Proposed Adverse Sent before the final adverse DL for proposed adverse cases, gives taxpayer chance to appeal. Forms/Pubs/Products Repository
1924
(DO/CG)
Not Authorized to Rule Return application because not authorized to rule. Forms/Pubs/Products Repository.
1935
(DO/CG)
Interested Party Transmittal Sent to each interested party that submitted comments after the IRS issues a favorable DL to the plan. Forms/Pubs/Products Repository
1936
(DO/CG)
Response to Interested Party Used when comments are received on a standardized plan for which the plan sponsor did not file an application for a DL. Forms/Pubs/Products Repository
1938
(DO/CG)
Suspense Letter Application is suspended while waiting for additional guidance, the end of a court case, or action from another federal agency. Forms/Pubs/Products Repository
1939
(DO/CG)
Interested Party Comment Transmittal to Plan Sponsor Sent to plan sponsor to inform them that the Service received comments from interested parties but it was determined that the comments do not affect the plan's qualification for favorable tax treatment. Forms/Pubs/Products Repository
1955
(DO/CG)
Additional Information Request Partial response received from first request and need additional information. Forms/Pubs/Products Repository
2002
(DO/CG)
Favorable Determination Letter Favorable DL for 1st Remedial Amendment Cycle (RAC) and later.

Note:

Replaced by Letter 5274 effective July 27, 2015.

Forms/Pubs/Products Repository.
2044
(DO/CG)
Withdrawal Taxpayer withdraws application, no refund issued. Forms/Pubs/Products Repository.
2052
(DO/CG)
Final Adverse After Technical Advice Final Adverse DL after Technical Advice. Forms/Pubs/Products Repository.
2234
(DO/CG)
Returning Deficient Plans Return case because submission substantially deficient. Obsolete. Forms/Pubs/Products Repository
2927
(DO/CG)
Dishonored Payment Non-sufficient fee or stop payment. Forms/Pubs/Products Repository
3336-C EP Determination Acknowledgement Letter Sent to plan sponsor to acknowledge receipt of the application. This is a Correspondence letter generated by the Integrated Data Retrieval System (IDRS). Forms/Pubs/Products Repository
4577
(DO/CG)
Favorable Letter - Autoclosure (6 year RAC) Favorable DL Auto-closure.
Obsolete.
Forms/Pubs/Products Repository
5274
(DO/CG)
Favorable Letter Favorable DL for 1st RAC and later.

Note:

Replaced Letter 2002.

Forms/Pubs/Products Repository.
5275
(DO/CG)
Withdrawal Letter Application is off-cycle and taxpayer withdraws instead of placing case in suspense and refund issued.

Note:

Replaced Letter 2045.

Forms/Pubs/Products Repository.
5276
(DO/CG)
QAS Case Assignment Sent by QAS when an application is selected for QAS review.

Note:

Replaced Letter 3577.

Forms/Pubs/Products Repository.
5277
(DO/CG)
FOIA Request With and Without Cost Used by EP Determinations Customer Service specialists to send copies of a plan during a FOIA request and to inform the recipient that there is a fee because the documents were in excess of 100 pages. Forms/Pubs/Products Repository
5446
(DO/CG)
Acknowledgement of Interested Party Sent to acknowledge interested party comments and to inform the interested party that their comments will be considered in the determination process. Forms/Pubs/Products Repository
5535
(DO/CG)
Open Remedial Amendment Cycle (RAC) Sponsor doesn’t provide timely and complete response to a Letter 5543 or Letter 5544 and the sponsors RAC is still open. Forms/Pubs/Products Repository.
5536
(DO/CG)
Final Disposition Letter Sponsor doesn’t provide timely and complete response to a Letter 5543 or Letter 5544 and the sponsors RAC is closed. Forms/Pubs/Products Repository.
5537
(DO/CG)
Extension Granted - Employee Plans Documents 10-day extension to Letter 1196 or 1955 deadline. Forms/Pubs/Products Repository
5542
(DO/CG)
Area Manager Extension Granted Documents extension granted by Area Manager Extension Letter. Forms/Pubs/Products Repository
5543
(DO/CG)
Procedurally Incomplete - Request for Missing Items Request additional information after the Procedural Completeness Review.

Note:

Use for cycle E2 and A3 cases.

Forms/Pubs/Products Repository
5544
(DO/CG)
Technically Incomplete - Request for Missing Items Request additional information after the Technical Review.

Note:

Use for cycle E2 and later cases and terminations received on or after 2-1-15.

Forms/Pubs/Products Repository
5888
(DO/CG)
Failure to Respond - Rev. Proc. 2016-37 Cases For applications submitted on or after January 1, 2017 under the post-RAC rules of Rev. Proc. 2016-37 and the sponsor doesn’t provide timely and complete response to a Letter 5544. Forms/Pubs/Products Repository.
5889
(DO/CG)
Partial Termination Letter Informs the sponsor of the determination whether a partial termination occurred when sponsor requests a partial termination ruling when the plan is not otherwise eligible to apply for a determination letter. See Rev. Proc. 2021-4, section 9.09 (updated annually). Forms/Pubs/Products Repository.