See also sections 4.21, 8.03(6), 9.01, 10.10 and 19.01 of this revenue procedure for other circumstances under which an Opinion Letter may be revoked. Taxpayers using the rates and list of high-cost localities provided in this notice must comply with Rev. (6) a plan grandfathered under Rev. Foreign Per Diem Rates by Location DSSR 925. Page Last Reviewed or Updated: 29-Sep-2022, Request for Taxpayer Identification Number (TIN) and Certification, Employers engaged in a trade or business who pay compensation, Electronic Federal Tax Payment System (EFTPS), News Releases for Frequently Asked Questions, businesses seeking coronavirus-related tax relief, Treasury Inspector General for Tax Administration, IRS provides guidance on per diem rates and the temporary 100% deduction for food or beverages from restaurants. Mileage Reimbursement $990.85 $743.00 $198.00 * .58 cents per mile * Mileage reimbursement is effective January 10, 2022 per LA R.S. .04 Obtaining a determination letter An Adopting Employer of a Nonstandardized Plan that makes amendments to the plan that are not extensive may obtain reliance that the form of the plan, as amended, satisfies the 403(b) Requirements by requesting a determination letter using Form 5307 (as updated) under procedures similar to the procedures applicable to 401(a) pre-approved plans, and may do so regardless of whether a prior determination letter has been issued with respect to the plan. The per diem rates in lieu of the rates described in Notice 2021 -52 (the meal and incidental expenses only substantiation method) are $74 for travel to (Compare with modified, below). .03 Church A Church is a church within the meaning of 3121(w)(3)(A). The Mass Submitter must also immediately notify any affected minor modifier adopter, and the minor modifier adopter must notify all Adopting Employers of any of its 403(b) Pre-approved Plans affected by the failure and the notification must explain the effect on the reliance by Adopting Employers on the Opinion Letter. (2) Under the provisions governing eligibility and participation, the plan by its terms benefits all employees except those who may be excluded under 1.410(b)-6. An Opinion Letter issued to a Provider is not transferable. Error, The Per Diem API is not responding. .01 Pursuant to 147(f), tax-exempt qualified private activity bonds are subject to a public approval requirement. This revenue procedure applies to all ruling requests pending in or received by the Service on or after September 3, 2021. .02 Section 1.147(f)-1(d)(1) of the Income Tax Regulations provides that public hearing means a forum providing a reasonable opportunity for interested individuals to express their views, orally or in writing, on the proposed issue of bonds and the location and nature of the proposed project to be financed. (3) If the plan provides for benefits in the form of a life annuity, the plan must satisfy the present value and benefit guarantee requirements of 1.403(b)-9(a)(5), and the present value must be based on reasonable actuarial assumptions that are either set forth in the plan or incorporated by reference into the plan. See section 23.01. Revoked describes situations where the position in the previously published ruling is not correct and the correct position is being stated in a new ruling. 2020-40, sets forth rules for a regular six-year remedial amendment cycle for 401(a) pre-approved plans and an extension of the remedial amendment period and adoption deadline for plan amendments for 401(a) pre-approved plans. For travel to any other areas within the United States, the FY 2021 general per diem rates are used. 1. The IRS will not consider a plan with such an omission or cross-reference until after the plan has been revised and resubmitted, and the modified plan will be treated as a new application for approval as of the date it is resubmitted, and therefore will be treated as off-cycle, as set forth in section 10.02, if resubmitted after the On-Cycle Submission Period. management, More for accounting Proc. Distinguished describes a situation where a ruling mentions a previously published ruling and points out an essential difference between them. The application form (or Appendix A) must be typed. 2017-41 for administrative procedures for seeking an opinion letter for 401, 403(a), or 4975(e)(7) plans). 2019-48 (or successor). Comments may be submitted in one of two ways: (1) Electronically via the Federal eRulemaking Portal at www.regulations.gov (type IRS-2021-0011 in the search field on the regulations.gov homepage to find this revenue procedure and submit comments). See EPCRS, Rev. .03 Inclusion of Investment Arrangements in the 403(b) Pre-approved Plan A 403(b) Pre-approved Plan includes the Investment Arrangements under the plan in addition to the single plan document or the basic plan document and adoption agreement. Since the terms of Investment Arrangements under a 403(b) Pre-approved Plan must be incorporated by reference into the plan and those arrangements may not have any provisions that are inconsistent with 403(b), plan terms that are required in a single plan document or the basic plan document and adoption agreement, as applicable, under this section 5 should not create a conflict with the terms of the Investment Arrangements under a properly drafted 403(b) Pre-approved Plan. Proc. (d) in the case of a provision that is integral to a 403(b) Requirement that has been changed, the date the plan is first operated in accordance with the provision, as amended. 2019-39 to change the expiration date of the Initial Remedial Amendment Period, and all dates that are based on the expiration of the Initial Remedial Amendment Period, from March 31, 2020 to June 30, 2020. Under the high-low method, the per diem rate for all See section 6.03. 136, as modified by Rev. .01 Issuance of an Opinion Letter The IRS will, upon the application of a Provider, issue an Opinion Letter as to satisfaction of the form of the Providers plan with the 403(b) Requirements. Adoption agreement (if the application is for a 403(b) Pre-approved Plan that uses an adoption agreement)? .16 Newly Approved 403(b) Pre-approved Plan See section 4.27(3)(b). Beginning October 1, 2021, the high-low per diem rate that can be used for lodging, meals, and incidental expenses increases to $296 (from $292) for travel to high-cost locations and increases to $202 (from $198) for travel to other locations. Proc. All commenters are strongly encouraged to submit comments electronically, as access to mail may be limited. 2016-37 sets forth the deadline for the timely adoption of an interim amendment to a qualified pre-approved plan. Proc. .06 Prior to the On-Cycle Submission Period for Cycle 2, the IRS will issue a Cumulative List that identifies changes in the 403(b) Requirements that will be taken into account with respect to a plan document submitted to the IRS for Cycle 2 and that were not taken into account by the IRS in its review during Cycle 1. The meal portion is based on the average costs of three daily meals at dining establishments typically used by federal employees in that location. See section 13.02. This section 16 does not impose a requirement on a Provider to monitor compliance of an Adopting Employers plan with the 403(b) Requirements, but it provides that the Provider has a duty to inform the Adopting Employer if the Provider has knowledge that the Adopting Employers plan may no longer satisfy those requirements. .13 Nonidentification of questionable issues may cause delay If the 403(b) Pre-approved Plan submitted as part of an Opinion Letter application includes a provision that gives rise to an issue for which contrary published authorities exist, failure to disclose to the IRS and address any significant contrary authorities may result in requests for additional information, which will delay action on the application. .07 Existing 403(b) Pre-approved Plan See section 4.27(3)(c). .10 Rev. The limited extension of the Initial Remedial Amendment Period applies to a Form Defect that: (a) either (i) results in the failure of the plan to satisfy the 403(b) Requirements by reason of a change in those requirements, or (ii) is integral to the 403(b) Requirement that has been changed, and (b) first occurs on or after January 1, 2018. This part includes notices of proposed rulemakings, disbarment and suspension lists, and announcements. 96-49, 1996-2 C.B. Employer X decides to no longer be an individually designed plan and adopts a Newly Approved 403(b) Pre-approved Plan during the Cycle 3 Employer Adoption Window. Proc. A cloud-based tax 2013-22 to change the address to which applications for an opinion or advisory letter should be submitted and to insert a user fee that was previously omitted. Upon written request, a Provider must provide to the IRS a list of Adopting Employers that indicates, to the best of the Providers knowledge, which of those employers continue to maintain the plan as a Pre-approved Plan and which of those employers have ceased to maintain its 403(b) Pre-approved Plan within the preceding three years. See section 8.04. .08 Section 21.05 of Rev. An official website of the U.S. General Services Administration. Comprehensive Explore all Additionally, a Cycle 1 403(b) Pre-approved Plan that is intended to be a Retirement Income Account may be amended to permit the participation of employees of certain church-related organizations, as described in 414(e)(3)(B), retroactive to the beginning of Cycle 2. Thus, for example, a Governmental Plan, a plan of a Church or QCCO, and a plan of a non-QCCO that use separate adoption agreements may be associated with the same basic plan document. New Mileage Rate for 2022 Share This Print The new rate for business miles driven for travel taking place on or after July 1, 2022, is $0.625 per mile , an increase from $0.585 in January 2022. Every 403(b) Pre-approved Plan that provides a vesting schedule for contributions other than elective deferrals must also satisfy the following requirements: (1) the portion of a participants interest in the plan that is not vested must be maintained in a separate account for the participant that is treated as a separate contract to which 403(c) (or, in case of a Custodial Account, 401(a)) applies, (2) as amounts in the participants separate account become nonforfeitable, they must be removed from the separate account and treated as amounts held under a 403(b) plan, to the extent permitted under 1.403(b)-3(d)(2)(ii), and (3) all nonvested amounts remaining in the participants separate account must become nonforfeitable upon termination of the plan. See Section 2.01 of Rev. (2) An Adopting Employer of a Nonstandardized Plan may rely on the plans Opinion Letter with respect to the requirements of 410(b), if applicable, if all nonexcludable employees benefit under the Adopting Employers plan. Investment provisions are those provisions that describe the plans methods of investing assets, including provisions such as the availability of loans and self-directed investments. Section 16.01 of Rev. In this case, the Adopting Employer will lose reliance on the Opinion Letter as of the effective date of the amendment but the plan will remain eligible for the Cycle system (provided that the Adopting Employer adopts timely interim amendments) until the end of the Cycle that includes the effective date. Section 1.147(f)-1(d)(2) provides that the public hearing must be held in a location that, based on the facts and circumstances, is convenient for residents of the approving governmental unit. 2019-48 may treat the meal portion of a per diem rate or allowance paid or incurred after Dec. 31, 2020, and before Jan. 1, 2023, as being attributable to food or beverages provided by a restaurant. corporations, For 944, and Rev. .08 Sample language The IRS anticipates providing updated LRMs before the On-Cycle Submission Period with respect to a Cycle begins. .15 Uniformed Services Employment and Reemployment Rights Act and 414(u) Each 403(b) Pre-approved Plan must include a provision reflecting the requirements of 414(u). You can! 2020-21, effective May 4, 2020, provides temporary guidance regarding the public approval requirement under 147(f). See Rev. Background Any plan submitted by a Mass Submitter must include language designating the Mass Submitter as agent for the Provider for purposes of making plan amendments. Rates for foreign countries are set by the State Department. 2016-37 in future guidance to reflect guidance issued after the publication of Rev. See section 11 for rules relating to Mass Submitter plans, including procedures for identical adopters and minor modifier adopters of Mass Submitter plans. For information as to where to access per diem rates for various types of Government travel, please consult the table in 301-11.6. .29 Single Document Plan See section 4.27(2). If it is determined that the changes are not minor, the plan submitted under section 11.03(2)(c) will not be entitled to expedited review and will otherwise be treated as a non-Mass Submitter plan. Looking for U.S. government information and services? Secure .gov websites use HTTPS Proc. corporations. (a) A Minor Modification is a minor change to an otherwise word-for-word identical 403(b) Pre-approved Plan of the Mass Submitter that the IRS determines does not require an in-depth IRS technical review. Obsoleted describes a previously published ruling that is not considered determinative with respect to future transactions. .02 Nonstandardized Plans An Adopting Employer of a Nonstandardized Plan may rely on the plans Opinion Letter that the form of the Adopting Employers plan satisfies the 403(b) Requirements, provided that the Nonstandardized Plan has a currently valid Opinion Letter, the Adopting Employers plan is identical to the Nonstandardized Plan, and the Adopting Employer has not amended the plan other than by choosing options provided under the plan or by making amendments that are described in section 9.03 relating to employer amendments that will not affect reliance. 2013-22 provides that a 403(b) Pre-approved Plan that is intended to be a Retirement Income Account may be maintained only by a Church or convention or association of churches, including an organization described in 414(e)(3)(A), to provide benefits under 403(b) for its employees or their beneficiaries as described in 1.403(b)-9. 2016-37 is deleted. During the first year of Cycle 3, Employer X makes an amendment described in section 9.05(1), effective as of the first day of the plan year that begins during the first year of Cycle 3. Based on local market costs of mid-priced hotels, lodging per diem rates provide caps, or maximum amounts, that can be reimbursed to federal employees for lodging and meals while on official travel. Page Last Reviewed or Updated: 07-Oct-2022, Request for Taxpayer Identification Number (TIN) and Certification, Employers engaged in a trade or business who pay compensation, Electronic Federal Tax Payment System (EFTPS), Publication 463, Travel, Entertainment, Gift, and Car Expenses, Small Business, Self-Employed, Other Business, Treasury Inspector General for Tax Administration, Per diem rates for areas outside the continental United States (. As provided in those letters, the IRS considered changes set forth in the final regulations under 403(b) and the applicable requirements of the 2012 Cumulative List of Changes in Plan Qualification Requirements set forth in Notice 2012-76, 2012-52 I.R.B. If, after the 30-day period, neither action has been taken, the IRS may treat the application as having been withdrawn. governments, Business valuation & Pursuant to section 5.08, the Provider will no longer have the authority to amend the plan on behalf of the Adopting Employer. 157 (as updated annually). 2019-39 establishes a system of recurring Remedial Amendment Periods for 403(b) individually designed plan Form Defects first occurring after the Initial Remedial Amendment Period expires (that is, after June 30, 2020). See section 10 for the instructions for Opinion Letter applications. 1 A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 202027 through 202052 is in Internal Revenue Bulletin 202052, dated December 27, 2020. .17 Section 11.04 of Rev. (Also see 1.415(c)-1(d) and 1.415(f)-1(f) for special rules applicable to 403(b) plans.) The estimated number of respondents and/or recordkeepers is 8,188. The specified period for which Sedona, Arizona is a high cost locality under section 5, paragraph 2 of Notice 2020-71 is modified to be October 1, 2020 - December 31, 2020; March 1, 2021 - April 30, 2021; and September 1, 2021 - September 30, 2021. 945, as modified by Notice 2020-35, 2020-25 I.R.B. 2020-40, 2020-38 I.R.B. Proc. .04 Cycle A Cycle is a Remedial Amendment Cycle, as defined in section 4.24. or 4.d. Procedures relating solely to matters of internal management are not published; however, statements of internal practices and procedures that affect the rights and duties of taxpayers are published. This notice also modifies Notice 2020-71, 2020-40 I.R.B. WASHINGTON The Internal Revenue Service today issued guidance for business Significantly, the entire credit was refundable, meaning that it was available to those with no earned income. For more information, see EBIAs Fringe Benefits manual at SectionXXI.G(Travel Expense Reimbursements: Substantiation). The estimated annual burden per respondent/recordkeeper varies from 1/2 to 2,000 hours, depending on individual circumstances, with an estimated average of 3.56 hours. .25 Remedial Amendment Period The Remedial Amendment Period is the period during which a 403(b) plan may be amended to comply retroactively with the 403(b) Requirements. If 4.a. 786, to change the portion of the year Sedona, Arizona is a high-cost locality under section 5 of Notice 2020-71. Not all locations have their own per diem established, in which case you would use the standard amount of $96 for lodging and $55 for M & IE. In this case, in order to have reliance, the Adopting Employer would need to re-adopt the 403(b) Pre-approved Plan after the issuance of the Opinion Letter for the plan. The IRS currently allows owner-operators to deduct 80% of .01 Provider plan amendments generally Providers are required to amend their 403(b) Pre-approved Plans to ensure that the form of their plans continues to satisfy the 403(b) Requirements. However, the plan may deny an allocation to an employee who is eligible to participate if the employee terminates service during the plan year with not more than 500 hours of service and is not an active employee on the last day of the plan year. Annuity contracts issued by an insurance company, _____c. Similarly, a later deadline is provided for a 403(b) Pre-approved Plan that is a Governmental Plan. FY 2023 Per Diem Highlights. (b) Newly Approved 403(b) Pre-approved Plan A Newly Approved 403(b) Pre-approved Plan, which is a plan for which an Opinion Letter has been issued for the Cycle. Unpublished rulings will not be relied on, used, or cited as precedents by Service personnel in the disposition of other cases. (3) An Adopting Employer amends a 403(b) Pre-approved Plan (including its adoption agreement, if applicable) more than one year after the date the Adopting Employer initially adopted the 403(b) Pre-approved Plan to incorporate a type of plan not permitted in the Opinion Letter program, as described in section 6.03. Except in the case of certain Nonstandardized Plans described in this section 5.06, contributions other than elective deferrals (and earnings thereon) under a 403(b) Pre-approved Plan must vest at least as rapidly as would be required to satisfy the minimum vesting requirements of 411(a)(2)(B) applicable to a qualified plan under 401(a), even if the plan is not subject to the parallel minimum vesting requirements under ERISA 203. (3) Nonstandardized Plans may permit an Adopting Employer to select an allocation formula for contributions other than elective deferrals that satisfies one of the design-based safe harbors in 1.401(a)(4)-2(b)(2), and to select a safe harbor compensation definition for the formula that satisfies 1.414(s)-1(c). For this purpose, an Opinion Letter will be given the same effect as a determination letter. statement, 2019 A Cycle ends at the end of the last day of the Employer Adoption Window for that Cycle. See section 8.03(7) regarding limitations on reliance. (Employees can no longer deduct their unreimbursed expenses due to the suspension of miscellaneous itemized deductions by the Tax Cuts and Jobs Act, so these other rates are effectively unavailable to them.) .11 Additional information may be requested When reviewing the application for an Opinion Letter, the IRS may, in its discretion, require any additional information that it deems necessary, including a demonstration of how the variables (options or alternatives) in the 403(b) Pre-approved Plan interrelate to satisfy the 403(b) Requirements. Suite. Proc. 2019-48, 2019-51 I.R.B. The amendment must be made in good faith with the intent of complying with the 403(b) Requirements. is checked, complete the following information for the Mass Submitters plan on which this application is based, to the extent the information is available when this application is filed: e. Basic plan document number or Single Document Plan number (if b, c, and d not available): f. Adoption agreement number, if applicable (if b, c, and d not available). Proc. The period described in this section 4.02 is the period beginning on May 4, 2020, and ending on March 31, 2022. It is the policy of the Service to publish in the Bulletin all substantive rulings necessary to promote a uniform application of the tax laws, including all rulings that supersede, revoke, modify, or amend any of those previously published in the Bulletin. IRS updates per diem guidance for business travelers and their employers. See Rev. Proc. ADDITIONAL REQUIREMENTS FOR MASS SUBMITTERS, SECTION 13. REVIEW OF OPINION LETTER APPLICATIONS; ISSUANCE OF OPINION LETTERS; EMPLOYER ADOPTION WINDOW, SECTION 15. There are location-specific per diem rates that fall under the standard method, especially in states with expensive urban areas or tourist destinations. Accordingly, prior to being amended or restated, the plan must either have timely corrected any Form Defects for which the Remedial Amendment Period is closed or have corrected any plan document failures under the Employee Plans Compliance Resolution System (EPCRS). The determination letter application must be filed during the applicable Employer Adoption Window (for example, a determination letter application for a Cycle 2 plan must be filed during the Cycle 2 Employer Adoption Window). See section 23 of Rev. accounting, Firm & workflow A Single Document Plan consists of a single plan document offered by a Provider without an adoption agreement. Examples of a change in entity include, but are not limited to, the acquisition of a Provider by another entity, the sale or transfer of the stock or assets of the Provider to another entity, and any other circumstance that results in a change in a Providers employer identification number. .19 Section 13 of Rev. The application must include a copy of the plan document and any adoption agreement, if applicable. Proc. 2013-22 is modified and superseded regarding Opinion Letter applications submitted with respect to a 403(b) Pre-approved Plans second (and subsequent) Cycles. Proc. Proc. We're taking you to our old site, where the page you asked for still lives Continue to old site Last updated: 28 Apr 2021 c. The following locality has been removed from the list of high-cost localities: Gulf Breeze, Florida. 2019-39 provides that an Eligible Employer adopting a 403(b) Pre-approved Plan generally must adopt an interim amendment with respect to a change in 403(b) Requirements. In this case, the Adopting Employer will lose reliance on the Opinion Letter as of the date participation in the 403(b) Pre-approved Plan ends but the plan will remain eligible for the Cycle system (provided that the Adopting Employer adopts timely interim amendments) until the end of the Cycle that includes the date on which participation in the 403(b) Pre-approved Plan ends. Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. The Treasury Department and the IRS invite comments on this revenue procedure. The Mass Submitter must certify under penalties of perjury that the plan of the Provider, except for the delineated changes, is word-for-word identical to the plan for which the Mass Submitter will be receiving or has received an Opinion Letter. 2016-37 provides that, for a tax-exempt employer, the adoption deadline for an interim amendment set forth in section 15.04(1) and 15.05 applies, as modified by section 15.06(2). 2017-18, as modified by Notice 2020-35, expired on June 30, 2020. Proc. (b) The IRS reserves the right to determine if the changes described in paragraph (a) of this section 11.03(2) are minor (for example, if the changes are not numerous and do not require an in-depth technical review). The principal author of this revenue procedure is Patrick Gutierrez of the Office of Associate Chief Counsel (Employee Benefits, Exempt Organizations, and Employment Taxes). Further, if more than one governmental unit is required to hold a public hearing, the hearings may be combined as long as the combined hearing affords the residents of all of the participating governmental units a reasonable opportunity to be heard. WASHINGTON The U.S. General Services Administration (GSA) today released the fiscal year (FY) 2021 travel per diem rates, which will take effect on October 1, 2020. 2019-39 provides that, except as otherwise provided by statute, or in regulations or other guidance published in the Internal Revenue Bulletin, and provided that an interim amendment (if applicable) is made timely and in good faith with the intent of complying with the 403(b) Requirements, the Remedial Amendment Period with respect to a 403(b) Pre-approved Plan Form Defect first occurring after the Initial Remedial Amendment Period will end no earlier than the end of Cycle 2 and that the IRS intends to issue guidance providing additional rules for determining the end of the Remedial Amendment Period. We establish the per diem rates for the continental United States (CONUS), which includes the 48 contiguous states and the District of Columbia. Thus, the representation must indicate whether a Providers plan may include only one of a certain group of optional provisions, may include only a specific combination of provisions, or may exclude the provisions entirely. Proc. 2016-37 provides that, for a governmental plan within the meaning of 414(d), the adoption deadline for an interim amendment is: the later of (1) the deadline that would apply under the rules of section 15.04(1), or (2) 90 days after the close of the third regular legislative session of the legislative body with authority to amend the plan that begins on or after the date the amendment becomes effective. See section 4.27. .06 Rev. The provisions of Rev. 2022 per diem rates Per diem rates effective July 2022 [PDF 635 KB] Proc. Proc. Proc. However, the plan as adopted by a Provider must provide a method for investing assets. An official website of the United States Government. (2) The adoption agreement or single plan document must require the Adopting Employer to show its status with respect to the nondiscrimination requirements in 1.403(b)-5 by indicating whether the plan is: (b) a plan of an Adopting Employer that is a Church or QCCO for employees of the Church or QCCO; or. The updated LRMs, when available, may be downloaded from the Internet at http://www.irs.gov/Retirement-Plans/Listing-of-Required-Modifications-LRMs. Proc. 2016-37 to extend the deadline for adopting an interim amendment for a 401(a) pre-approved plan to match the deadline for adopting an interim amendment for a 403(b) pre-approved plan, which is set forth in Rev. .03 A 403(b) Pre-approved Plan may utilize either of two formats: a single plan document or a basic plan document with an adoption agreement. 92, and Rev. The Service will not issue rulings on whether an act of self-dealing occurs when a private foundation (or other entity subject to 4941) owns or receives an interest in a limited liability company or other entity that owns a promissory note issued by a disqualified person. Section 1.403(b)-3(b)(3)(i) generally provides that a contract does not satisfy the requirements of 1.403(b)-3(a) (regarding exclusion of contributions from gross income) unless it is maintained pursuant to a plan. For a taxpayer properly applying the rules of Revenue Procedure 2019-48,Notice 2021-63 provides a special rule that allows the taxpayer to treat the full meal portion of a per diem rate or allowance as being attributable to food or beverages from a restaurant beginning January 1, 2021, through December 31, 2022.
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