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). 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.