Instructions for Form 8950 Department of the Treasury
Internal Revenue Service
Application for Voluntary Correction Program (VCP)
Under the Employee Plans Compliance
Resolution System (EPCRS)
Section references are to the Internal Plans Compliance Resolution System examination or of any impending referral
Revenue Code (IRC) unless otherwise (EPCRS), and all of the other required for such examination;
noted. items stated in Rev. Proc. 2013-12, The subject plan is currently under
section 11. investigation by the Criminal Investigation
IRS.gov Division of the IRS; or
For the latest information about Form 8950 Types of Retirement Plans Certain other situations specified in
and its instructions, search “About Form Eligible for Corrections Rev. Proc. 2013-12, section 5.09.
8950” on IRS.gov or go directly to VCP is open to certain tax-favored VCP is not available to correct failures
www.irs.gov/form8950. retirement plans established under relating to the diversion or misuse of plan
sections 401(a), 403(a), 403(b), 408(k), or assets. VCP may not be available if the
Confidentiality and 408(p). Under limited circumstances, the plan sponsor has engaged in abusive tax
Disclosure IRS may also consider submissions avoidance transactions. See Rev. Proc.
The Voluntary Correction Program (VCP) outside of EPCRS that involve section 2013-12, sections 4.12 and 4.13. In
submission, including Form 8950, is not 457(b) plans on a provisional basis. particular cases, the IRS may decline to
open to public inspection or disclosure. Generally, such submissions are for make VCP available in the interest of
section 457(b) plans sponsored by a sound tax administration. See Rev. Proc.
The use of VCP relates directly to the governmental entity defined in section 2013-12, section 4.01(5).
enforcement of the IRC qualification 414(d). See Rev. Proc. 2013-12, section
requirements. The information received or 4.09, for details and limitations. Who May File
generated by the IRS under VCP is Form 8950 and accompanying VCP
subject to the confidentiality requirements Eligibility Requirements submission may only be filed by the
of section 6103 and is not a written
determination within the meaning of for the Use of VCP following parties:
VCP is open to eligible retirement plans In general, an employer or plan
section 6110. See Revenue Procedure
(see Types of Retirement Plans Eligible for sponsor, including a sole proprietor,
(Rev. Proc.) 2013-12, section 6.12.
Corrections above ) that incurred any one partnership, or corporation. Generally,
estates and/or beneficiaries may not file a
Disclosure Request by of the following qualification failures: (a)
submission under VCP.
Plan Document Failure; (b) Operational
Taxpayer Failure; (c) Demographic Failure; or (d) For multiple employer or multiemployer
The Tax Reform Act of 1976 permits a Employer Eligibility Failure. VCP is also plans, the plan administrator (rather than
taxpayer to request the IRS to disclose available for plan loans that did not comply any contributing or adopting employer).
and discuss the taxpayer's return and/or with the requirements of section 72(p)(2). The VCP submission must be for the plan,
return information with any person(s) the See Rev. Proc. 2013-12, sections 4.01, rather than a portion of the plan affecting
taxpayer designates in a written request. 5.01, 5.02, 6.07 and 6.11, for additional any particular employer.
Use Form 2848, Power of Attorney and details. VCP is also available to For group submissions, an eligible
Declaration of Representative, and/or terminated plans regardless of whether all organization as defined in Rev. Proc.
Form 8821, Tax Information Authorization, plan assets have been distributed. 2013-12, section 10.11, if the applicable
for this purpose. conditions for group submissions have
Correction under VCP is not available if been met.
the plan or plan sponsor is under Anonymous submissions must be filed
General Instructions examination. The Form 8950 and the VCP by an authorized representative. However,
submission must be mailed to the IRS the representative must be designated on
prior to the time the plan or plan sponsor is
Purpose of Form under examination, as defined in Rev.
a power of attorney by the employer (or in
the case of a multiple employer or
Form 8950 must be filed as part of a VCP Proc. 2013-12, section 5.09. For purposes multiemployer plan, the plan
submission in order to request written of VCP, a plan or plan sponsor will be administrator) and must be willing to
approval from the IRS for correction of a considered to be under examination if submit a signed Form 2848, if identifying
qualified plan, 403(b) plan, SEP, SARSEP any of the following situations apply: information is ultimately submitted to the
or SIMPLE IRA that has failed to comply The plan sponsor is under any type of IRS. See Anonymous Submissions below.
with the applicable requirements of the examination conducted by IRS Employee
IRC. VCP is part of the Employee Plans For orphan plans, an authorized eligible
Plans, including examination of a Form party. See Orphan Plans below.
Compliance Resolution System (EPCRS), 5500 series return;
currently set forth in Rev. Proc. 2013-12,
2013-4 I.R.B., which is available at
The plan sponsor is under any type of Orphan Plans
examination conducted by IRS Exempt
www.irs.gov/Retirement-Plans/Correcting- For VCP, orphan plan means any
Plan Errors. tax-favored retirement plan for which an
The plan sponsor or a representative
eligible party (defined below) has
A VCP submission includes Form has received verbal or written notification
determined that the plan sponsor (a) no
8950, Form 8951, Compliance Fee for from IRS Employee Plans or Exempt
longer exists, (b) cannot be located, or (c)
Application for Voluntary Correction Organizations of an impending
is unable to maintain the plan. However, a
Program (VCP) Under the Employee
Jan 30, 2013 Cat. No. 57357G
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retirement plan subject to Title I of the This must be a signed and dated If a line provides a choice of boxes to
Employee Retirement Income Security Act statement that includes the check, check only one box unless
of 1974 (ERISA) is not an orphan plan if it representative’s title and printed name. instructed otherwise; and
is terminated pursuant to Department of If a line provides a box to check, written
Labor (DOL) Regulations section 2578.1 Group Submissions responses and attachments are not
governing the termination of abandoned For failures affecting a large number of acceptable unless instructed otherwise.
individual account plans. individual plans, an eligible organization
An eligible party for an orphan plan is
may make a group submission. The What to File
failures in the submission must result from Form 8950 must be accompanied by the
defined as one of the following:
a systemic error involving the eligible following items:
A court-appointed representative with organization that affects at least 20 plans
specific authority to terminate the plan and The applicable compliance fee and
and that results in at least 20 plans Form 8951. Submit a separate check and
dispose of the plan’s assets; implementing correction. Form 8951 for each Form 8950. Make
In the case of an orphan plan under
checks payable to “United States
investigation by the DOL, a person or An eligible organization is defined as Treasury.” In addition, include a
entity determined by the DOL to have follows: photocopy of your check with your VCP
accepted responsibility for terminating the A sponsor (as defined in Rev. Proc. submission;
plan and distributing the plan's assets; or 2005-16, section 4.07, or Rev. Proc. All descriptions, information,
In the case of a qualified plan to which 2011-49, section 4.07) of a master and documents, sample computations (if
Title I of ERISA has never applied, a prototype plan; applicable), attachments, and
surviving spouse who is the sole A volume submitter practitioner (as representations required by Rev. Proc.
beneficiary of a plan that provided benefits defined in Rev. Proc. 2005-16, section 2013-12, section 11. In order to assist
to a participant who was (i) the sole owner 13.04, or Rev. Proc. 2011-49, section VCP applicants, the IRS encourages the
of the business that sponsored the plan 13.05); use of the Model VCP Submission
and (ii) the only participant in the plan. An insurance company or other entity Compliance Statement included in Rev.
that has issued annuity contracts or Proc. 2013-12, Appendix C, including its
The applicant must include a written
provides services relating to assets for supporting schedules. Appendix C and
letter indicating that the submission
403(b) plans; or Appendix D (Acknowledgement Letter)
concerns an orphan plan, and must
provide documentation that establishes An entity that provides its clients with are available in electronic format at
that they are an eligible party. See Rev. administrative services relating to qualified www.irs.gov/Retirement-Plans/Correcting-
Proc. 2013-12, sections 5.03 and 11.10. plans, 403(b) plans, SEPs, SARSEPs, or Plan-Errors. Attachments and written
SIMPLE IRAs. explanations that are included with the
submission should include the full name of
Anonymous Submissions For special rules and procedures that the plan, employer identification number
Taxpayers have the option of submitting a are applicable to group submissions, see (EIN), and plan number. For assistance in
VCP submission on an anonymous basis. Rev. Proc. 2013-12, section 10.11. determining what documents and
Form 8950 and all applicable VCP attachments are needed in order to have a
submission documents may be submitted Where to File complete VCP submission, refer to the
on a redacted basis. However, once the Procedural Requirements Checklist at the
Send Form 8950, Form 8951 and the
IRS and the applicant agree on the end of Form 8950.
related VCP submission to:
correction methodology that would resolve
the qualification failure that is the subject
of the VCP submission, the identity of the
Internal Revenue Service Who Must Sign
P.O. Box 12192 Form 8950 must be signed by:
plan sponsor and the plan must be Covington, KY 41012-0192
disclosed to the IRS, along with a signed The employer (including a sole
Form 2848 and applicable penalty of proprietor or partnership) maintaining a
VCP submissions shipped by express single-employer plan;
perjury statements. See Rev. Proc.
mail or a delivery service should be sent The plan administrator of a multiple
2013-12, section 10.10.
to: employer plan or a multiemployer plan;
An anonymous submission and Form The eligible organization filing a group
Internal Revenue Service
8950 will not be processed unless the submission; or
201 West Rivercenter Blvd
representative includes a signed The eligible person who is filing a VCP
Attn: Extracting Stop 312
statement indicating that the submission on behalf of an orphan plan.
Covington, KY 41011
representative has been authorized by the
An original signature is required.
plan sponsor, is able to legally represent
the plan sponsor, and is willing to submit a How to Complete the An anonymous submission should not
signed Form 2848 if identifying information Application be signed. Instead, the authorized
representative should attach a signed
is ultimately submitted to the IRS. See
Form 8950, and any related determination perjury statement. See Anonymous
Rev. Proc. 2013-12, sections 10.10,
letter application are screened to ensure Submissions, above.
11.07, and 11.08. Attach the following
completeness. An incomplete application
signed statement to Form 8950: Note: Form 8950 may not be signed by
may be returned to the applicant. It is
important that an appropriate response be an authorized representative designated
“Under penalties of perjury, I declare that I on Form 2848, Power of Attorney and
entered for each line (unless instructed
am an authorized representative of the Declaration of Representative.
otherwise). In completing Form 8950, pay
plan sponsor who complies with the power
careful attention to the following:
of attorney requirements described in Rev.
Proc. 2013-12, section 11.07. I will submit
an executed Form 2848 upon the
N/A (not applicable) is accepted as a
response only if an N/A block is provided; Specific Instructions
disclosure of the identity of the plan If a number is requested, enter the Lines 1a-h. Enter the name, address and
sponsor to the IRS.” appropriate number; telephone number of the plan sponsor.
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The plan sponsor information used on this entering the postal code and the name of is being reported on the related Form
Form 8950 must be the same plan the province, county, or state. 8951. If your plan is a SEP, SARSEP, or
sponsor information that is being reported SIMPLE IRA, leave this line blank.
Line 1i. Enter the nine-digit EIN assigned
on the related Form 8951. The plan For anonymous submissions, enter
to the applicant. For those applicants
information entered should be the same “401” for the first anonymous submission
required to file a Form 5500 series return,
information used on the applicable filed made by the authorized representative
the EIN should be the same EIN that is
Form 5500, Annual Return/Report of using Form 8950. For subsequent
used when the Form 5500 series return is
Employee Benefit Plan; Form 5500-EZ, anonymous submissions made by the
filed. Also, the EIN used on this Form
Annual Return/Report of One-Participant authorized representative, the plan
8950 must be the same EIN that is being
(Owners and Their Spouses) Retirement number to be entered on each Form 8950
reported on the attached Form 8951.
Plan; or Form 5500-SF, Short Form will be the next number following 401 (for
Annual Return/Report of Small Employee If this is an anonymous submission,
example, 402, 403, 404, etc.) resulting in
Benefit Plan. enter the EIN of the authorized
unique plan numbers for each subsequent
The plan sponsor is: anonymous submission. The number
Do not use a social security number or assigned to a specific anonymous
1. For a plan maintained by a single
trust EIN. submission must not be changed or used
employer, the employer;
An applicant must have an EIN. If you for any other anonymous submission
2. For a plan maintained by two or made by the authorized representative.
do not have an EIN, you may apply for one
more unrelated employers (a multiple
online. Go to the IRS website at Line 4c. Enter the month the plan year
employer plan or multiemployer plan),
www.irs.gov/businesses/small and click ends. Plan year means the calendar,
enter the name of the plan administrator
on the “Employer ID Numbers (EINs)” link. policy, or fiscal year on which the records
as if it was the plan sponsor (see
Alternatively, an applicant can apply for an of the plan are kept. If this is an
Regulations section 1.414(g)-1). Items
EIN by calling 1-800-829-4933 or by anonymous submission, leave this line
1b-1k should be completed as if the plan
mailing or faxing a completed Form SS-4, blank.
administrator were the plan sponsor;
Application for Employer Identification
3. For a plan sponsored by two or Number, to the IRS. Line 4d. Enter the total dollar value of the
more entities required to be combined retirement plan’s assets. For Form 5500
under sections 414(b), (c), or (m), one of Line 2a. List a person who may be series filers, this information comes from
the members participating in the plan; contacted if additional information is the most recently filed return for the plan
needed. If you have appointed an determined as of the date the Form 8950
4. For a plan that covers the authorized representative, check the box,
employees and/or partners of a is mailed to the IRS. Filers of the 2010 and
do not complete any line 2 items and 2011 Form 5500 can find this information
partnership, the partnership; include Form 2848 with your submission. on Schedule H or I. Filers of Form
5. For an orphan plan, the name of the If you have listed an individual from a 5500-SF, look to line 7. For Form 5500-EZ
eligible party. Include a court order or submitted Form 8821 as the contact filers, look to line 6. For plans that are
other evidence documenting that the VCP person, note that an individual listed only exempt from filing a Form 5500 series
applicant is an eligible party. See Rev. on Form 8821 cannot be contacted if return, enter the total dollar value of the
Proc. 2013-12, section 11.10; questions or issues arise during the retirement plan assets as of the last day of
6. For an anonymous submission, processing of a VCP submission. the most recently completed plan year.
enter “Anonymous” and include the Line 3. Check the box that best describes For a group submission, the eligible
specific name of the plan sponsor’s the type of submission that is being mailed organization is to provide a good faith
authorized representative as well as the to the IRS. Most submissions will be estimate of the value of the retirement plan
unique identifying number the regular VCP submissions. VCP group assets that are associated with the
representative has assigned to the submissions, anonymous submissions, or individual retirement plans that are part of
specific submission, as required by Rev. non-VCP submissions involving 457(b) the group submission.
Proc. 2013-12, section 10.10. Enter this plans should be identified by checking the
information on line 1a. The identifying appropriate box. Do not check more than Line 4e. Enter the total number of plan
number should not be used for any other one box. participants. For Form 5500 series filers,
anonymous submission. Lines 1b, 1c, 1e, this information is on the most recently
1f, 1g, 1h, 1j and 1k can be left blank. For Line 4a. Enter the full name of the plan, filed return for the plan determined as of
line 1d, include the abbreviation of the as shown on Form 5500 or other the date the Form 8950 is mailed to the
state where the plan sponsor is located; documents. For example, you can enter IRS. Filers of the 2010 and 2011 Form
and the XYZ Company Profit-Sharing Plan. If 5500 can find this information on line 6(f).
this is an anonymous submission, leave For filers of Form 5500-SF and Form
7. For a group submission, enter the
this line blank. 5500-EZ, look to line 5(b).
name of the eligible organization. Enter
this information on line 1a. Items 1b-1k Line 4b. Enter the plan’s three-digit plan For applicants that are exempt from
should be completed as if the eligible number. Typically, three-digit plan filing a Form 5500 series return, enter the
organization were the plan sponsor. numbers begin with “001” and continue in number of plan participants determined as
numerical order for each plan that has of the last day of the most recently ended
Address. Enter the address of the plan been adopted by the plan sponsor. The plan year. However, if this information is
sponsor. If applicable, include the suite, number you assign to a plan must not be not available at the time the VCP
room, or other unit number after the street changed or used for any other plan. For submission is being mailed to the IRS, it is
address. If the Post Office does not deliver those plan sponsors required to file a acceptable to use the most recently ended
mail to that address, show the box number Form 5500 series return, the plan number prior plan year for which information on the
instead of the street address. entered on Form 8950 should be the same number of plan participants is available.
Foreign Address. If the plan sponsor as the plan number that was or will be The exception does not apply if the VCP
has a foreign address, complete lines 1f, used when the Form 5500 series return is submission is mailed to the IRS more than
1g, and 1h. Do not abbreviate the country filed. The plan number used on this Form seven months after the close of the most
name. Follow the country's practice for 8950 must be the same plan number that recently ended plan year preceding the
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date of the VCP submission. See Rev. For off-cycle plans (as of the date of the application to the IRS. During the review
Proc. 2013-12, section 12.08. VCP submission), the failure is an process, additional information is solicited
Plans that have terminated and filed a operational failure that is being corrected in order to determine whether the plan had
final form 5500 series return should enter by retroactive plan amendment. To been timely amended for past tax law
the number of participants on the return determine whether a plan is on-cycle or changes. The determination letter
filed for the year prior to the year all assets off-cycle, see Rev. Proc. 2007-44 (or its application is withdrawn by Plan Sponsor
were distributed. successor). Generally, a plan’s cycle is X. Two months later, Plan Sponsor X
determined by reference to the EIN of the submits a VCP submission to the IRS
For group submissions, the eligible indicating the plan document was not
plan sponsor if it is an individually
organization must provide a good faith timely updated for various specified tax
designed document. If the plan document,
estimate of the number of plan participants law changes. When completing Form
at the time of the failure, is a pre-approved
associated with the individual retirement 8950, Plan Sponsor X should answer
document, a different method is used to
plans that are part of the group “Yes” to question 12 and include a written
determine the plan's cycle.
submission. attachment that explains why the
If 7b is checked “No,” include an
The number of participants reported on determination letter application was
attachment that explains why a
this Form 8950 must be the same number withdrawn.
determination letter application was not
that is being reported on the related Form
submitted with Form 8950 and related
8951. Privacy Act and Paperwork Reduction
VCP submission. The attachment should
Line 5. Review all possible choices refer to line 7b and include the applicant's Act Notice. We ask for the information on
before selecting an answer. Enter the type name, plan number, and EIN. this form to carry out the Internal Revenue
of plan that is the subject of this VCP laws of the United States. Sections 72,
Line 7c. If 7a is checked Yes, enter the 401, 403, 408, 409, 457, 4972, 4973,
submission by selecting the appropriate
plan’s remedial amendment cycle. For 4974, and 4979 and their regulations
number from the choices associated with
individually designed plans, plan sponsors authorize us to ask for this information.
would pick one of the five cycles from You are not required to apply for this
For this purpose, governmental section Cycle A through Cycle E. For plans that correction program; however, if you do,
414(d) plans are section 401(a) plans are under the six-year cycle associated you are required to give us the information
sponsored by a governmental entity, as with pre-approved documents, enter either requested on this form. We need it to
defined in section 414(d). “pre-approved defined contribution plan” determine whether your correction
If your plan type is not listed among the or “pre-approved defined benefit plan,” as proposals meet the legal requirements
various available choices, enter 99 and applicable. To determine a plan’s cycle, applicable to qualified retirement plans.
attach a detailed description of your plan. refer to the instructions for line 7b and Section 6109 and its regulations require
It is expected that plan type 99 would be Rev. Proc. 2007-44. you to provide your identifying number.
used in very rare circumstances. Line 8. If Yes, attach a written Failure to provide the information
explanation that provides details of the requested on this form could delay or
Line 6. If “Yes” is chosen, check the
transaction(s). See Rev. Proc. 2013-12, prevent processing of your application;
boxes indicating which Appendix C, Part II
section 4.13(2). Include the applicant’s providing fraudulent information could
Schedules are being submitted with the
name, plan number, and EIN at the top of subject you to penalties.
VCP submission. See Rev. Proc. 2013-12,
Appendix C, for descriptions of the the attachment. You are not required to provide the
Schedules. Line 10. See Eligibility Requirements for information requested on a form that is
Line 7a. VCP submissions that involve the Use of VCP , earlier, and Rev. Proc. subject to the Paperwork Reduction Act
403(b) plans, SEPs, and SIMPLE plans 2013-12, section 4.02. unless the form displays a valid OMB
may skip all questions on line 7. control number. Books or records relating
Line 11. If “Yes,” include an attachment to a form or its instructions must be
Anonymous submissions may also skip all that indicates when the determination
questions on line 7. However, a retained as long as their contents may
letter application was submitted to the become material in the administration of
determination letter application may need IRS, along with the case number that has
to be submitted to the IRS upon disclosure any internal revenue law. Generally, tax
been assigned, if known. Include the returns and return information are
of the applicant’s identity. applicant’s name, plan number, and EIN at confidential, as required by section 6103.
Line 7b. Rev. Proc. 2013-12, section the top of the attachment. However, we may give the information to
6.05, generally requires that a Line 12. This question should be the Department of Justice for civil and
determination letter application be answered “Yes,” if: criminal litigation, and to other federal
included with a VCP submission if a A past determination letter application agencies, as provided by law. We may
section 401(a) plan document or was withdrawn by the plan sponsor; or give it to cities, states, the District of
operational failure (not a demographic Columbia, and U.S. commonwealths or
A past determination letter application
failure) is being corrected by a retroactive possessions to administer their tax laws.
was closed as incomplete due to a failure
plan amendment. However, no We may also disclose this information to
to respond to a question and the VCP
determination letter application is required other countries under a tax treaty, to
submission includes qualification failures
to be submitted with a VCP submission in federal and state agencies to enforce
that were identified during the application
the following situations: nontax criminal laws, and to federal law
process or would have been discovered
The failure is limited to late interim by the IRS had the application not been enforcement and intelligence agencies to
amendments or amendments required to withdrawn or closed as incomplete. combat terrorism.
implement optional changes associated
with a change in tax law; If line 12 was checked “Yes,” attach an The time needed to complete and file
The failure is being corrected by explanation. Include the applicant's name, this form will vary depending on individual
adopting IRS model amendments or an plan number, and EIN at the top of the circumstances. The estimated average
IRS pre-approved prototype or volume attachment. time is:
submitter plan on which the plan sponsor Consider the following example: Plan
has reliance; Sponsor X submits a determination letter
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Recordkeeping . . . . . . . . 5 hrs. , 15 min. suggestions for making this form simpler, Do not send Form 8950 to this address.
Learning about the law or we would be happy to hear from you. You Instead, see Where To File, earlier.
the form . . . . . . . . . . . . . 2 hrs. , 10 min. can write to:
Preparing the form . . . . . 2 hrs. , 21 min. Internal Revenue Service
Tax Products Coordinating
If you have comments concerning the SE:W:CAR:MP:T:I
accuracy of these time estimates or 1111 Constitution Ave. NW, IR-6526
Washington, DC 20224
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