APRSC

AcronymDefinition
APRSCAdministrative Policy Regarding Self-Correction (IRS)
References in periodicals archive ?
Under APRSC, no fees or sanctions are assessed; correction of an operational failure is all that is required from a plan sponsor.
Thus, under APRSC, a plan sponsor could correct an assumed insignificant operational failure only to have the IRS subsequently deem the failure significant.
The APRSC is an ideal program for correcting certain types of relatively minor or generic operational failures, as described in Revenue Procedures 98-22 and 99-31.
Provide assurance that correction made before audit (even for failures corrected outside of the APRSC, VCR and Walk-in CAP programs) will be an important factor in reducing the potential sanction under Audit CAP.
One of the most beneficial aspects of APRSC is that no sanction or fee is required.
When a defect cannot be corrected through APRSC or VCR, the voluntary CAP is generally available.
In summary, the consolidation of the APRSC, VCR and CAP programs under Rev.
APRSC generally is available for all operational violations found and corrected within the plan year following the violation year.
To be eligible for APRSC, a plan administrator must have established practices and procedures that demonstrate a reasonable effort to comply with the plan and the IRC.
403(b) are eligible to use APRSC to correct operational violations and plan defects.
To be eligible for APRSC, plan sponsors or administrators must have established practices and procedures reasonably designed to promote and facilitate overall compliance with Sec.
However, an operational violation that has not been corrected within this time frame could be considered a "nondisqualifying" event eligible for APRSC if the IRS considers it insignificant.