IRS Priority Guidance Plan
2006 - 2007
Rev. 08/31/06, E-mail Alert 2006-18

Note: This list was created by the IRS before the Pension Protection Act (PPA) was enacted, and thus the list does not reflect priorities created by PPA.

EMPLOYEE BENEFITS
A. Retirement Benefits

1. Final regulations on transmission of notices to participants through electronic means with respect to distributions from qualified retirement plans. Proposed regulations were published on July 14, 2005.
   
2. Guidance regarding the treatment of incidental health insurance benefits provided under a profit-sharing or stock bonus plan.
   
3. Guidance on benefits not permitted in a defined benefit plan.
   
4. Modification of Rev. Proc. 2005-66 to reflect special rules regarding determination letter procedures for governmental and tax-exempt employers.
   
5. 2006 cumulative list of guidance for determination letter program.
   
6. Modification of Rev. Proc. 2006-27 (EPCRS) to provide fixed fee schedule for opinion and advisory letter submissions for pre-approved plans filed after January 31, 2006 deadline. (401)
   
7. Guidance on notices to employees participating in a section 401(k) safe harbor plan.
   
8. Final regulations on designated Roth contributions under section 401(k) plans and under section 402A. Proposed regulations were published on January 26, 2006.
   
9. Guidance regarding prototype Roth IRAs for amendments to accept rollovers from designated Roth accounts under a section 401(k) plan.
   
10. Final regulations under section 403(b) regarding tax-favored annuities purchased by section 501(c)(3) organizations or public schools. Proposed regulations were published on November 16, 2004. NOTE: IRS delayed the effective date until 2008 on August 29, 2006.
    
11. . Final regulations on designated Roth contributions under section 403(b) plans. Proposed regulations were published on January 26, 2006.
    
12. Final regulations under section 404(k) addressing redemptions of participant stock and avoidance or evasion of taxation. Proposed regulations were published on August 25, 2005.
    
13. 13. Guidance under section 408 on the treatment of wrap fees.
    
14. Final regulations on qualified nonbank trustees for deemed IRAs under section 408(q). Temporary regulations were published on July 22, 2004.
    
15. Final regulations under section 409(p) with respect to synthetic equity and additional issues relating to ESOPs. Temporary regulations were published on December 17, 2004.
    
16. Guidance under section 411 regarding accrual and vesting of benefits provided pursuant to qualified retirement plans.
    
17. Final regulations regarding the limitations on benefits and contributions under section 415. Proposed regulations were published on May 31, 2005.
    
18. Guidance on the elimination of Schedule P as an attachment to the Form 5500.
    

B. Executive Compensation, Health Care and Other Benefits, and Employment Taxes

1. Guidance on accountable plans and per diem payments.
   
2. Guidance under section 83 on post-grant restrictions.
   
3. Revenue ruling on taxable health benefits for beneficiaries.
   
4. Proposed regulations on cafeteria plans under section 125 updating regulations for statutory changes and providing additional guidance.
   
5. Guidance under section 132 on debit cards and qualified transportation fringes.
   
6. Guidance addressing the scope of section 162(m) with respect to amounts payable to covered employees.
   
7. Guidance on the wage limitation used in connection with section 199.
   
8. Guidance on Health Savings Accounts.
   
9. Guidance on the tax treatment of beneficiaries of nonexempt trusts described in section 402(b)(4).
   
10. Final Regulations under section 409A.
    
11. Guidance regarding the application of section 409A to split dollar life insurance.
    
12. Guidance regarding reporting and income tax withholding under section 409A.
13. Guidance on deductions for contributions to a welfare benefit fund.
    
14. Guidance under section 419A on reserves for post-retirement medical and life insurance benefits.
    
15. Guidance under section 457(f).
    
16. Guidance on the application of SECA to Conservation Reserve Program payments.
    
17. Final regulations under section 3121 regarding the definition of a salary reduction agreement. Temporary regulations were published on November 16, 2004.
    
18. Final regulations under section 3402(f) relating to Form W-4. Temporary regulations were published on March 11, 2005.
    
19. Guidance on how to provide electronically filed Form W-2s by deadline when employer ceases operation.
    
    IRS Priority Guidance Plan 2006-2007