EPCRS Program Eligibility Flowchart


Use this flowchart to determine if a retirement plan sponsor may use the IRS Employee Plans Compliance Resolution System (EPCRS) to correct a failure to comply with the qualification requirements for the plan's tax-favored status and to determine which EPCRS program is available to correct the failure: Self-Correction Program (SCP), Voluntary Correction Program (VCP), or Audit Closing Agreement Program (Audit CAP). See Rev. Rul. 2021-30. SCP is the most desirable program since no IRS feeling is needed and there is no fee or penalty. For a VCP correction, the plan sponsor must submit the correction to the IRS for approval and pay a fee. Audit CAP is generally used if the plan is subject to an examination audit by the IRS.