April 11, 2005

Recent IRS Guidance and News

Here is a list of recent IRS promulgations and news pertaining to benefits:

Issuance of Rev. Rul. 2005-24 which provides guidance on health reimbursement arrangements. The Ruling discusses an HRA plan design involving an employer contribution for unused vacation and sick leave.

Issuance of Rev. Proc. 2005-25 providing guidance on how to determine the fair market value of a life insurance contract, retirement income contract, endowment contract, or other contract providing life insurance protection for purposes of applying the rules of §§ 79, 83 and 402 of the Internal Revenue Code.

Issuance of LRMs for 401(k) plans and defined contribution plans.

A Special Edition of Employee Plan News noting that the TE/GE division of IRS is going through another restructuring. View the new area map here. The EP Examination field structure has been realigned from six areas into five:

  • Northeast Area
  • Mid-Atlantic Area
  • Great Lakes Area
  • Gulf Coast Area
  • Pacific Coast Area
Apparently, the Mid-Atlantic Area no longer covers New Jersey, but now covers Ohio and West Virginia. Tennessee and Florida are now under the Gulf Coast umbrella.

(Source for Revenue Ruling and Revenue Procedure: Benefitslink.com.)

Posted by B. Janell Grenier at April 11, 2005 01:56 PM