Since 1998 the Internal Revenue Services (the “IRS”) has had a comprehensive employees plans correction program with three components: self-correction (SCP), voluntary correction with IRS approval including related user fee (VCP), and correction on audit with related penalties (Audit CAP). Each iteration of the Employee Plans Compliance Resolution System (EPCRS), currently set forth in Rev. Proc. 2021-30, has made it easier for plan sponsors and administrators to correct operational or plan document failures that adversely impact the tax qualification of the retirement plan. SECURE Act 2.0[1] significantly expands the EPCRS self-correction program.
SCP under Rev. Proc. 2021-30
Eligibility for the SCP is dependent on the Plan Sponsor or administrator of a plan having established practices and procedures (formal or informal) reasonably designed to promote and facilitate overall compliance in form and operation with applicable Internal Revenue Code requirements. A plan document alone does not constitute evidence of established procedures. In order for a Plan Sponsor or administrator to use SCP, these established procedures must have been in place and routinely followed, and if an Operational Failure[2] or Plan Document Failure[3] occurred, it was through an oversight or mistake in applying them. SCP also may be used in situations in which the Operational Failure or Plan Document Failure occurred because the procedures that were in place, while reasonable, were not sufficient...
The 11th Circuit has upheld the constitutionality of the False Claims Act’s qui tam provisions, joining other federal appeals courts that have decided the question and reversing a ruling that had ...