Daily Tax Update - July 21, 2015: IRS Announces Changes to Determination Letter Program

IRS Announces Changes to Determination Letter Program:  In Announcement 2015-19, the IRS described changes to the employee plan determination letter program for qualified retirement plans.  Effective January 1, 2017, the IRS will be eliminating the five-year remedial amendment cycle for determination letters.  The announcement also stated that, as of today, the IRS will no longer accept determination letter applications that are submitted off-cycle.

Finance Committee Approves Tax Extenders:  The Senate Finance Committee voted to approve a modified chairman’s mark that would extend certain expired tax provisions for two years, through December 31, 2016. 

IRS Memo Explains Political Activities Referral Committees:  A memorandum released today clarifies the composition and operation of the Political Activities Referral Committee (PARC).  Each PARC will consist of three randomly selected IT-04 grade-level managers for two-year terms.  Two of the three members must agree for an exempt organization to be referred for audit.