<!–:en–>IRS TO MODIFY DETERMINATION LETTER PROGRAM<!–:–>

The Internal Revenue Service (IRS) has announced that it will revise the procedures of its determination letter program next year. In general, employers request determination letters to ensure that their pension and retirement plans are “qualified,” meaning that they meet all requirements for favorable tax treatment under the Internal Revenue Code. The modifications will eliminate program features that have limited utility, and many employers will no longer apply for determination letters, the IRS said. The changes will be described in detail in Revenue Procedure 2012-6, which is scheduled for publication Jan. 3, 2012, in Internal Revenue Bulletin 2012-1.  12.20.2011