Form 8950--Application for Voluntary Correction Program (VCP)

Instructions for Form 8950
(January 2013)

Department of the Treasury
Internal Revenue Service

Application for Voluntary Correction Program (VCP)
Under the Employee Plans Compliance
Resolution System (EPCRS)
Section references are to the Internal
Revenue Code (IRC) unless otherwise
noted.

IRS.gov

For the latest information about Form 8950
and its instructions, search “About Form
8950” on IRS.gov or go directly to
www.irs.gov/form8950.

Confidentiality and
Disclosure

The Voluntary Correction Program (VCP)
submission, including Form 8950, is not
open to public inspection or disclosure.
The use of VCP relates directly to the
enforcement of the IRC qualification
requirements. The information received or
generated by the IRS under VCP is
subject to the confidentiality requirements
of section 6103 and is not a written
determination within the meaning of
section 6110. See Revenue Procedure
(Rev. Proc.) 2013-12, section 6.12.

Disclosure Request by
Taxpayer

The Tax Reform Act of 1976 permits a
taxpayer to request the IRS to disclose
and discuss the taxpayer's return and/or
return information with any person(s) the
taxpayer designates in a written request.
Use Form 2848, Power of Attorney and
Declaration of Representative, and/or
Form 8821, Tax Information Authorization,
for this purpose.

General Instructions
Purpose of Form

Form 8950 must be filed as part of a VCP
submission in order to request written
approval from the IRS for correction of a
qualified plan, 403(b) plan, SEP, SARSEP
or SIMPLE IRA that has failed to comply
with the applicable requirements of the
IRC. VCP is part of the Employee Plans
Compliance Resolution System (EPCRS),
currently set forth in Rev. Proc. 2013-12,
2013-4 I.R.B., which is available at
www.irs.gov/Retirement-Plans/CorrectingPlan Errors.
A VCP submission includes Form
8950, Form 8951, Compliance Fee for
Application for Voluntary Correction
Program (VCP) Under the Employee

Jan 30, 2013

Plans Compliance Resolution System
(EPCRS), and all of the other required
items stated in Rev. Proc. 2013-12,
section 11.

Types of Retirement Plans
Eligible for Corrections

examination or of any impending referral
for such examination;
The subject plan is currently under
investigation by the Criminal Investigation
Division of the IRS; or
Certain other situations specified in
Rev. Proc. 2013-12, section 5.09.

VCP is open to certain tax-favored
retirement plans established under
sections 401(a), 403(a), 403(b), 408(k), or
408(p). Under limited circumstances, the
IRS may also consider submissions
outside of EPCRS that involve section
457(b) plans on a provisional basis.
Generally, such submissions are for
section 457(b) plans sponsored by a
governmental entity defined in section
414(d). See Rev. Proc. 2013-12, section
4.09, for details and limitations.

VCP is not available to correct failures
relating to the diversion or misuse of plan
assets. VCP may not be available if the
plan sponsor has engaged in abusive tax
avoidance transactions. See Rev. Proc.
2013-12, sections 4.12 and 4.13. In
particular cases, the IRS may decline to
make VCP available in the interest of
sound tax administration. See Rev. Proc.
2013-12, section 4.01(5).

Eligibility Requirements
for the Use of VCP

Form 8950 and accompanying VCP
submission may only be filed by the
following parties:
In general, an employer or plan
sponsor, including a sole proprietor,
partnership, or corporation. Generally,
estates and/or beneficiaries may not file a
submission under VCP.
For multiple employer or multiemployer
plans, the plan administrator (rather than
any contributing or adopting employer).
The VCP submission must be for the plan,
rather than a portion of the plan affecting
any particular employer.
For group submissions, an eligible
organization as defined in Rev. Proc.
2013-12, section 10.11, if the applicable
conditions for group submissions have
been met.
Anonymous submissions must be filed
by an authorized representative. However,
the representative must be designated on
a power of attorney by the employer (or in
the case of a multiple employer or
multiemployer plan, the plan
administrator) and must be willing to
submit a signed Form 2848, if identifying
information is ultimately submitted to the
IRS. See Anonymous Submissions below.
For orphan plans, an authorized eligible
party. See Orphan Plans below.

VCP is open to eligible retirement plans
(see Types of Retirement Plans Eligible for
Corrections above ) that incurred any one
of the following qualification failures: (a)
Plan Document Failure; (b) Operational
Failure; (c) Demographic Failure; or (d)
Employer Eligibility Failure. VCP is also
available for plan loans that did not comply
with the requirements of section 72(p)(2).
See Rev. Proc. 2013-12, sections 4.01,
5.01, 5.02, 6.07 and 6.11, for additional
details. VCP is also available to
terminated plans regardless of whether all
plan assets have been distributed.

Correction under VCP is not available if
the plan or plan sponsor is under
examination. The Form 8950 and the VCP
submission must be mailed to the IRS
prior to the time the plan or plan sponsor is
under examination, as defined in Rev.
Proc. 2013-12, section 5.09. For purposes
of VCP, a plan or plan sponsor will be
considered to be under examination if
any of the following situations apply:
The plan sponsor is under any type of
examination conducted by IRS Employee
Plans, including examination of a Form
5500 series return;
The plan sponsor is under any type of
examination conducted by IRS Exempt
Organizations;
The plan sponsor or a representative
has received verbal or written notification
from IRS Employee Plans or Exempt
Organizations of an impending

Cat. No. 57357G

Who May File

Orphan Plans

For VCP, orphan plan means any
tax-favored retirement plan for which an
eligible party (defined below) has
determined that the plan sponsor (a) no
longer exists, (b) cannot be located, or (c)
is unable to maintain the plan. However, a

retirement plan subject to Title I of the
Employee Retirement Income Security Act
of 1974 (ERISA) is not an orphan plan if it
is terminated pursuant to Department of
Labor (DOL) Regulations section 2578.1
governing the termination of abandoned
individual account plans.
An eligible party for an orphan plan is
defined as one of the following:
A court-appointed representative with
specific authority to terminate the plan and
dispose of the plan’s assets;
In the case of an orphan plan under
investigation by the DOL, a person or
entity determined by the DOL to have
accepted responsibility for terminating the
plan and distributing the plan's assets; or
In the case of a qualified plan to which
Title I of ERISA has never applied, a
surviving spouse who is the sole
beneficiary of a plan that provided benefits
to a participant who was (i) the sole owner
of the business that sponsored the plan
and (ii) the only participant in the plan.
The applicant must include a written
letter indicating that the submission
concerns an orphan plan, and must
provide documentation that establishes
that they are an eligible party. See Rev.
Proc. 2013-12, sections 5.03 and 11.10.

Anonymous Submissions

Taxpayers have the option of submitting a
VCP submission on an anonymous basis.
Form 8950 and all applicable VCP
submission documents may be submitted
on a redacted basis. However, once the
IRS and the applicant agree on the
correction methodology that would resolve
the qualification failure that is the subject
of the VCP submission, the identity of the
plan sponsor and the plan must be
disclosed to the IRS, along with a signed
Form 2848 and applicable penalty of
perjury statements. See Rev. Proc.
2013-12, section 10.10.
An anonymous submission and Form
8950 will not be processed unless the
representative includes a signed
statement indicating that the
representative has been authorized by the
plan sponsor, is able to legally represent
the plan sponsor, and is willing to submit a
signed Form 2848 if identifying information
is ultimately submitted to the IRS. See
Rev. Proc. 2013-12, sections 10.10,
11.07, and 11.08. Attach the following
signed statement to Form 8950:
“Under penalties of perjury, I declare that I
am an authorized representative of the
plan sponsor who complies with the power
of attorney requirements described in Rev.
Proc. 2013-12, section 11.07. I will submit
an executed Form 2848 upon the
disclosure of the identity of the plan
sponsor to the IRS.”

This must be a signed and dated
statement that includes the
representative’s title and printed name.

Group Submissions

For failures affecting a large number of
individual plans, an eligible organization
may make a group submission. The
failures in the submission must result from
a systemic error involving the eligible
organization that affects at least 20 plans
and that results in at least 20 plans
implementing correction.

An eligible organization is defined as
follows:
A sponsor (as defined in Rev. Proc.
2005-16, section 4.07, or Rev. Proc.
2011-49, section 4.07) of a master and
prototype plan;
A volume submitter practitioner (as
defined in Rev. Proc. 2005-16, section
13.04, or Rev. Proc. 2011-49, section
13.05);
An insurance company or other entity
that has issued annuity contracts or
provides services relating to assets for
403(b) plans; or
An entity that provides its clients with
administrative services relating to qualified
plans, 403(b) plans, SEPs, SARSEPs, or
SIMPLE IRAs.
For special rules and procedures that
are applicable to group submissions, see
Rev. Proc. 2013-12, section 10.11.

Where to File

Send Form 8950, Form 8951 and the
related VCP submission to:
Internal Revenue Service
P.O. Box 12192
Covington, KY 41012-0192
VCP submissions shipped by express
mail or a delivery service should be sent
to:
Internal Revenue Service
201 West Rivercenter Blvd
Attn: Extracting Stop 312
Covington, KY 41011

How to Complete the
Application

Form 8950, and any related determination
letter application are screened to ensure
completeness. An incomplete application
may be returned to the applicant. It is
important that an appropriate response be
entered for each line (unless instructed
otherwise). In completing Form 8950, pay
careful attention to the following:
N/A (not applicable) is accepted as a
response only if an N/A block is provided;
If a number is requested, enter the
appropriate number;
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If a line provides a choice of boxes to
check, check only one box unless
instructed otherwise; and
If a line provides a box to check, written
responses and attachments are not
acceptable unless instructed otherwise.

What to File

Form 8950 must be accompanied by the
following items:
The applicable compliance fee and
Form 8951. Submit a separate check and
Form 8951 for each Form 8950. Make
checks payable to “United States
Treasury.” In addition, include a
photocopy of your check with your VCP
submission;
All descriptions, information,
documents, sample computations (if
applicable), attachments, and
representations required by Rev. Proc.
2013-12, section 11. In order to assist
VCP applicants, the IRS encourages the
use of the Model VCP Submission
Compliance Statement included in Rev.
Proc. 2013-12, Appendix C, including its
supporting schedules. Appendix C and
Appendix D (Acknowledgement Letter)
are available in electronic format at
www.irs.gov/Retirement-Plans/CorrectingPlan-Errors. Attachments and written
explanations that are included with the
submission should include the full name of
the plan, employer identification number
(EIN), and plan number. For assistance in
determining what documents and
attachments are needed in order to have a
complete VCP submission, refer to the
Procedural Requirements Checklist at the
end of Form 8950.

Who Must Sign

Form 8950 must be signed by:
The employer (including a sole
proprietor or partnership) maintaining a
single-employer plan;
The plan administrator of a multiple
employer plan or a multiemployer plan;
The eligible organization filing a group
submission; or
The eligible person who is filing a VCP
submission on behalf of an orphan plan.
An original signature is required.
An anonymous submission should not
be signed. Instead, the authorized
representative should attach a signed
perjury statement. See Anonymous
Submissions, above.
Note: Form 8950 may not be signed by
an authorized representative designated
on Form 2848, Power of Attorney and
Declaration of Representative.

Specific Instructions
Lines 1a-h. Enter the name, address and
telephone number of the plan sponsor.

The plan sponsor information used on this
Form 8950 must be the same plan
sponsor information that is being reported
on the related Form 8951. The plan
information entered should be the same
information used on the applicable filed
Form 5500, Annual Return/Report of
Employee Benefit Plan; Form 5500-EZ,
Annual Return/Report of One-Participant
(Owners and Their Spouses) Retirement
Plan; or Form 5500-SF, Short Form
Annual Return/Report of Small Employee
Benefit Plan.
The plan sponsor is:
1. For a plan maintained by a single
employer, the employer;
2. For a plan maintained by two or
more unrelated employers (a multiple
employer plan or multiemployer plan),
enter the name of the plan administrator
as if it was the plan sponsor (see
Regulations section 1.414(g)-1). Items
1b-1k should be completed as if the plan
administrator were the plan sponsor;
3. For a plan sponsored by two or
more entities required to be combined
under sections 414(b), (c), or (m), one of
the members participating in the plan;
4. For a plan that covers the
employees and/or partners of a
partnership, the partnership;
5. For an orphan plan, the name of the
eligible party. Include a court order or
other evidence documenting that the VCP
applicant is an eligible party. See Rev.
Proc. 2013-12, section 11.10;
6. For an anonymous submission,
enter “Anonymous” and include the
specific name of the plan sponsor’s
authorized representative as well as the
unique identifying number the
representative has assigned to the
specific submission, as required by Rev.
Proc. 2013-12, section 10.10. Enter this
information on line 1a. The identifying
number should not be used for any other
anonymous submission. Lines 1b, 1c, 1e,
1f, 1g, 1h, 1j and 1k can be left blank. For
line 1d, include the abbreviation of the
state where the plan sponsor is located;
and
7. For a group submission, enter the
name of the eligible organization. Enter
this information on line 1a. Items 1b-1k
should be completed as if the eligible
organization were the plan sponsor.
Address. Enter the address of the plan
sponsor. If applicable, include the suite,
room, or other unit number after the street
address. If the Post Office does not deliver
mail to that address, show the box number
instead of the street address.
Foreign Address. If the plan sponsor
has a foreign address, complete lines 1f,
1g, and 1h. Do not abbreviate the country
name. Follow the country's practice for

entering the postal code and the name of
the province, county, or state.
Line 1i. Enter the nine-digit EIN assigned
to the applicant. For those applicants
required to file a Form 5500 series return,
the EIN should be the same EIN that is
used when the Form 5500 series return is
filed. Also, the EIN used on this Form
8950 must be the same EIN that is being
reported on the attached Form 8951.
If this is an anonymous submission,
enter the EIN of the authorized
representative's employer.
Do not use a social security number or
trust EIN.
An applicant must have an EIN. If you
do not have an EIN, you may apply for one
online. Go to the IRS website at
www.irs.gov/businesses/small and click
on the “Employer ID Numbers (EINs)” link.
Alternatively, an applicant can apply for an
EIN by calling 1-800-829-4933 or by
mailing or faxing a completed Form SS-4,
Application for Employer Identification
Number, to the IRS.
Line 2a. List a person who may be
contacted if additional information is
needed. If you have appointed an
authorized representative, check the box,
do not complete any line 2 items and
include Form 2848 with your submission.
If you have listed an individual from a
submitted Form 8821 as the contact
person, note that an individual listed only
on Form 8821 cannot be contacted if
questions or issues arise during the
processing of a VCP submission.
Line 3. Check the box that best describes
the type of submission that is being mailed
to the IRS. Most submissions will be
regular VCP submissions. VCP group
submissions, anonymous submissions, or
non-VCP submissions involving 457(b)
plans should be identified by checking the
appropriate box. Do not check more than
one box.
Line 4a. Enter the full name of the plan,
as shown on Form 5500 or other
documents. For example, you can enter
the XYZ Company Profit-Sharing Plan. If
this is an anonymous submission, leave
this line blank.
Line 4b. Enter the plan’s three-digit plan
number. Typically, three-digit plan
numbers begin with “001” and continue in
numerical order for each plan that has
been adopted by the plan sponsor. The
number you assign to a plan must not be
changed or used for any other plan. For
those plan sponsors required to file a
Form 5500 series return, the plan number
entered on Form 8950 should be the same
as the plan number that was or will be
used when the Form 5500 series return is
filed. The plan number used on this Form
8950 must be the same plan number that
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is being reported on the related Form
8951. If your plan is a SEP, SARSEP, or
SIMPLE IRA, leave this line blank.
For anonymous submissions, enter
“401” for the first anonymous submission
made by the authorized representative
using Form 8950. For subsequent
anonymous submissions made by the
authorized representative, the plan
number to be entered on each Form 8950
will be the next number following 401 (for
example, 402, 403, 404, etc.) resulting in
unique plan numbers for each subsequent
anonymous submission. The number
assigned to a specific anonymous
submission must not be changed or used
for any other anonymous submission
made by the authorized representative.
Line 4c. Enter the month the plan year
ends. Plan year means the calendar,
policy, or fiscal year on which the records
of the plan are kept. If this is an
anonymous submission, leave this line
blank.
Line 4d. Enter the total dollar value of the
retirement plan’s assets. For Form 5500
series filers, this information comes from
the most recently filed return for the plan
determined as of the date the Form 8950
is mailed to the IRS. Filers of the 2010 and
2011 Form 5500 can find this information
on Schedule H or I. Filers of Form
5500-SF, look to line 7. For Form 5500-EZ
filers, look to line 6. For plans that are
exempt from filing a Form 5500 series
return, enter the total dollar value of the
retirement plan assets as of the last day of
the most recently completed plan year.
For a group submission, the eligible
organization is to provide a good faith
estimate of the value of the retirement plan
assets that are associated with the
individual retirement plans that are part of
the group submission.
Line 4e. Enter the total number of plan
participants. For Form 5500 series filers,
this information is on the most recently
filed return for the plan determined as of
the date the Form 8950 is mailed to the
IRS. Filers of the 2010 and 2011 Form
5500 can find this information on line 6(f).
For filers of Form 5500-SF and Form
5500-EZ, look to line 5(b).
For applicants that are exempt from
filing a Form 5500 series return, enter the
number of plan participants determined as
of the last day of the most recently ended
plan year. However, if this information is
not available at the time the VCP
submission is being mailed to the IRS, it is
acceptable to use the most recently ended
prior plan year for which information on the
number of plan participants is available.
The exception does not apply if the VCP
submission is mailed to the IRS more than
seven months after the close of the most
recently ended plan year preceding the

date of the VCP submission. See Rev.
Proc. 2013-12, section 12.08.
Plans that have terminated and filed a
final form 5500 series return should enter
the number of participants on the return
filed for the year prior to the year all assets
were distributed.
For group submissions, the eligible
organization must provide a good faith
estimate of the number of plan participants
associated with the individual retirement
plans that are part of the group
submission.
The number of participants reported on
this Form 8950 must be the same number
that is being reported on the related Form
8951.
Line 5. Review all possible choices
before selecting an answer. Enter the type
of plan that is the subject of this VCP
submission by selecting the appropriate
number from the choices associated with
this line.
For this purpose, governmental section
414(d) plans are section 401(a) plans
sponsored by a governmental entity, as
defined in section 414(d).
If your plan type is not listed among the
various available choices, enter 99 and
attach a detailed description of your plan.
It is expected that plan type 99 would be
used in very rare circumstances.
Line 6. If “Yes” is chosen, check the
boxes indicating which Appendix C, Part II
Schedules are being submitted with the
VCP submission. See Rev. Proc. 2013-12,
Appendix C, for descriptions of the
Schedules.
Line 7a. VCP submissions that involve
403(b) plans, SEPs, and SIMPLE plans
may skip all questions on line 7.
Anonymous submissions may also skip all
questions on line 7. However, a
determination letter application may need
to be submitted to the IRS upon disclosure
of the applicant’s identity.
Line 7b. Rev. Proc. 2013-12, section
6.05, generally requires that a
determination letter application be
included with a VCP submission if a
section 401(a) plan document or
operational failure (not a demographic
failure) is being corrected by a retroactive
plan amendment. However, no
determination letter application is required
to be submitted with a VCP submission in
the following situations:
The failure is limited to late interim
amendments or amendments required to
implement optional changes associated
with a change in tax law;
The failure is being corrected by
adopting IRS model amendments or an
IRS pre-approved prototype or volume
submitter plan on which the plan sponsor
has reliance;

For off-cycle plans (as of the date of the
VCP submission), the failure is an
operational failure that is being corrected
by retroactive plan amendment. To
determine whether a plan is on-cycle or
off-cycle, see Rev. Proc. 2007-44 (or its
successor). Generally, a plan’s cycle is
determined by reference to the EIN of the
plan sponsor if it is an individually
designed document. If the plan document,
at the time of the failure, is a pre-approved
document, a different method is used to
determine the plan's cycle.
If 7b is checked “No,” include an
attachment that explains why a
determination letter application was not
submitted with Form 8950 and related
VCP submission. The attachment should
refer to line 7b and include the applicant's
name, plan number, and EIN.
Line 7c. If 7a is checked Yes, enter the
plan’s remedial amendment cycle. For
individually designed plans, plan sponsors
would pick one of the five cycles from
Cycle A through Cycle E. For plans that
are under the six-year cycle associated
with pre-approved documents, enter either
“pre-approved defined contribution plan”
or “pre-approved defined benefit plan,” as
applicable. To determine a plan’s cycle,
refer to the instructions for line 7b and
Rev. Proc. 2007-44.
Line 8. If Yes, attach a written
explanation that provides details of the
transaction(s). See Rev. Proc. 2013-12,
section 4.13(2). Include the applicant’s
name, plan number, and EIN at the top of
the attachment.
Line 10. See Eligibility Requirements for
the Use of VCP , earlier, and Rev. Proc.
2013-12, section 4.02.
Line 11. If “Yes,” include an attachment
that indicates when the determination
letter application was submitted to the
IRS, along with the case number that has
been assigned, if known. Include the
applicant’s name, plan number, and EIN at
the top of the attachment.
Line 12. This question should be
answered “Yes,” if:
A past determination letter application
was withdrawn by the plan sponsor; or
A past determination letter application
was closed as incomplete due to a failure
to respond to a question and the VCP
submission includes qualification failures
that were identified during the application
process or would have been discovered
by the IRS had the application not been
withdrawn or closed as incomplete.
If line 12 was checked “Yes,” attach an
explanation. Include the applicant's name,
plan number, and EIN at the top of the
attachment.
Consider the following example: Plan
Sponsor X submits a determination letter
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application to the IRS. During the review
process, additional information is solicited
in order to determine whether the plan had
been timely amended for past tax law
changes. The determination letter
application is withdrawn by Plan Sponsor
X. Two months later, Plan Sponsor X
submits a VCP submission to the IRS
indicating the plan document was not
timely updated for various specified tax
law changes. When completing Form
8950, Plan Sponsor X should answer
“Yes” to question 12 and include a written
attachment that explains why the
determination letter application was
withdrawn.
Privacy Act and Paperwork Reduction
Act Notice. We ask for the information on
this form to carry out the Internal Revenue
laws of the United States. Sections 72,
401, 403, 408, 409, 457, 4972, 4973,
4974, and 4979 and their regulations
authorize us to ask for this information.
You are not required to apply for this
correction program; however, if you do,
you are required to give us the information
requested on this form. We need it to
determine whether your correction
proposals meet the legal requirements
applicable to qualified retirement plans.
Section 6109 and its regulations require
you to provide your identifying number.
Failure to provide the information
requested on this form could delay or
prevent processing of your application;
providing fraudulent information could
subject you to penalties.
You are not required to provide the
information requested on a form that is
subject to the Paperwork Reduction Act
unless the form displays a valid OMB
control number. Books or records relating
to a form or its instructions must be
retained as long as their contents may
become material in the administration of
any internal revenue law. Generally, tax
returns and return information are
confidential, as required by section 6103.
However, we may give the information to
the Department of Justice for civil and
criminal litigation, and to other federal
agencies, as provided by law. We may
give it to cities, states, the District of
Columbia, and U.S. commonwealths or
possessions to administer their tax laws.
We may also disclose this information to
other countries under a tax treaty, to
federal and state agencies to enforce
nontax criminal laws, and to federal law
enforcement and intelligence agencies to
combat terrorism.
The time needed to complete and file
this form will vary depending on individual
circumstances. The estimated average
time is:

Recordkeeping . . . . . . . . 5 hrs. , 15 min.
Learning about the law or
the form . . . . . . . . . . . . . 2 hrs. , 10 min.
Preparing the form . . . . . 2 hrs. , 21 min.

If you have comments concerning the
accuracy of these time estimates or

suggestions for making this form simpler,
we would be happy to hear from you. You
can write to:
Internal Revenue Service
Tax Products Coordinating
Committee
SE:W:CAR:MP:T:I
1111 Constitution Ave. NW, IR-6526
Washington, DC 20224

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Do not send Form 8950 to this address.
Instead, see Where To File, earlier.