The Internal Revenue Service (IRS) issued Announcement 2011-82 describing important changes to the Employee Plans determination letter program that will take effect in 2012. The changes eliminate features of the determination letter program that are of limited utility to plan sponsors in comparison with the burdens they impose. The changes are expected to reduce processing time for determination letter applications. The changes include:
- eliminating coverage and nondiscrimination demonstrations, and,
- limiting Form 5307, Application for Determination for Adopters of Master or Prototype or Volume Submitter Plans, filings to those employers who have made limited changes to their volume submitter (VS) plans.