On September 29, 2016, the Internal Revenue Service (IRS) issued
Revenue Procedure 2016-51 (Rev. Proc. 2016-51), which updates the
Employee Plans Compliance Resolution System (EPCRS) and changes how
sanctions will be determined if a qualified plan error is found
during an audit or the determination letter process (the Audit
Closing Agreement Program or "Audit CAP" portion of
EPCRS). Rev Proc. 2016-51 is effective on January 1, 2017 and
consolidates other recent IRS guidance, but falls far short of
expectations for an expanded corrections program for retroactive
corrective amendments in light of the absence of an ongoing
determination letter program for most qualified plans.
Except for the winding up of the last of the Cycle A
individually-designed plan applications, the determination letter
program is now limited to individually designed new plans,
individually designed terminating plans, volume submitter plans
with individually designed language and special
