IRS Issues Updated Plan Correction Program Guidance

May 8, 2006 – The IRS has issued Revenue Procedure 2006-27, updating the Employee Plans Compliance Resolution System (EPCRS) that outlines correction of retirement plan compliance failures. This guidance affects qualified retirement plans under 401(a), IRC Sec. 403 (a) and 403(b) plans, simplified employee pensions (SEP) plans under IRC Sec. 408(k), and savings incentive match plan for employees of small employer (SIMPLE) plans under IRC Sec. 408(p).  The EPCRS program was last revised in 2003 with Rev. Proc. 2003-44. Rev. Proc. 2006-27 modifies and supersedes the 2003 guidance.

Rev. Proc. 2005-27 may be accessed as follows.

http://www.irs.ustreas.gov/pub/irs-drop/rp-06-27.pdf