IRS Announces Termination of Letter Forwarding Program for Locating Plan Participants
On August 31, 2012, the Internal Revenue Service (“IRS”) issued Revenue Procedure 2012-35, which discontinues the IRS letter forwarding program for qualified retirement plans.
Before September 1, 2012, the IRS letter forwarding program was available to assist plan administrators, plan sponsors, and qualified termination administrators of abandoned plans under the DOL’s abandoned plan program to locate missing participants. The letter forwarding program will continue for situations in which an individual is seeking to find a taxpayer for a “humane purpose” or in the event of an emergency. Beginning September 1, 2012, plan administrators should use alternative procedures to locate missing participants, such as hiring companies that specialize in such activities, conducting internet searches, and using the missing participant services offered by the Pension Benefit Guaranty Corporation or the Social Security Administration.