January 14, 2016

IRS Reduces User Fees for VCP Submissions

The IRS has reduced its fees for voluntary compliance program (VCP) submissions effective February 1, 2016. The changes, along with increases and decreases in other user fees, are included in the IRS’s annual revenue procedure on user fees for matters under the jurisdiction of the IRS Commissioner, Tax Exempt and Government Entities Division. VCP is part of the Employee Plans Compliance Resolution System (EPCRS) and is used by sponsors of plans that want to voluntarily correct document and operational errors. For VCP applications first filed on or after February 1, 2016, the IRS advises sponsors to continue to use the current forms, but pay the new fees, until new forms are available.

         

Number of Participants
2015 Fees
      (Through January 31, 2016)

February 1, 2016 Fees
20 or fewer $750 $500
21 – 50 $1,000 $750
51 – 100 $2,500 $1,500
101 – 500 $5,000 $5,000
501 – 1,000 $8,000 $5,000
1,001 – 5,000 $15,000 $10,000
5,001 – 10,000 $20,000 $10,000
More than 10,000 $25,000 $15,000

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