What is a Determination Letter?
Determination letters are documents that are issued by the Internal Revenue Service in the United States. Essentially, the determination letter is an official decision on whether or not a retirement or pension plan put in place by an employer meets all the criteria established by the IRS for the structure and function of retirement plans. Generally, a determination letter is issued to either confirm the full compliance of the retirement plan or to advise the employer that the plan is not in compliance and that more work is needed before the plan can be officially sanctioned. Obtaining a determination letter usually requires making contact with the district office of the IRS that covers the geographical location of the employer’s headquarters. The proposed pension or retirement plan is provided in full detail to the IRS. In turn, the IRS evaluates each aspect of the proposed plan and determines if the structure meets the current qualifications for approval. If everything is in order, th
A Determination Letter is a document issued by the Internal Revenue Service which authorizes an organization to operate in a charitable, nonprofit status. It is a permanent part of the organization’s files and must be presented to the Business Tax Division if the organization is requesting a no-fee/exempt business tax certificate.
