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Can a WBP Secure an IRS Approval Letter of Tax-Exempt Status?

April 26, 2017Approval IRS letter Secure Status tax-exempt wbp

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Can a WBP Secure an IRS Approval Letter of Tax-Exempt Status?

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A VEBA WBP routinely applies for and receives an IRS favorable letter of determination of its IRC §501(c)(9) tax exempt status. An IRC §419(e) WBP does not file for tax exempt status; it is a taxable trust which by design is funded by tax advantaged financial instruments. WBPs which directly or indirectly use cash value life insurance to fund plan benefits should file IRS Form 8886 in order to avoid potential listed transaction penalties.