Form 8951 (Rev. 9-2016)
Page 2
Section references are to the Internal
Revenue Code unless otherwise noted.
Future Developments
For the latest information about
developments related to Form 8951 and
its instructions, such as legislation
enacted after they were published, go to
www.irs.gov/form8951.
What's New
The IRS has classified fees associated with
the Voluntary Correction Program (VCP) as
user fees subject to section 7528. For
2016, user fees for VCP submissions are
set forth in Rev. Proc. 2016-8, section 6.08.
User fees for VCP submissions are
currently published as part of the annual
revenue procedure for the user fee
program of the IRS as it pertains to
requests for letter rulings, determination
letters, etc., on matters under the
jurisdiction of the Commissioner, Tax
Exempt and Government Entities Division.
Beginning in 2017 and each year
thereafter, the user fees for VCP
submissions will be published as part of an
annual Employee Plans revenue procedure.
Taxpayers should refer to the revenue
procedure in effect at the time they file their
submission with the IRS to determine the
VCP user fee.
The IRS no longer lists specific user fee
amounts on this form. Applicants will enter
the applicable fee amount when
completing the form. For the current user
fees, go to the applicable annual revenue
procedure or IRS.gov at www.irs.gov/
retirement-plans/voluntary-correction-
program-fees.
General Instructions
Purpose of Form
Generally, a user fee is required with
each VCP submission. Use Form 8951 to
submit the applicable fee for the VCP
submission.
Where To File
Include Form 8951 and the applicable fee
with your VCP submission.
Send the documents to:
Internal Revenue Service
P.O. Box 12192
Covington, KY 41012-0192
VCP submissions shipped by express
mail or a delivery service should be sent to:
Internal Revenue Service
201 West Rivercenter Blvd.
Attn: Extracting Stop 312
Covington, KY 41011
Payment of User Fee
Generally, you must include a user fee
payment with any VCP submission mailed
to the IRS. If your submission is for a
terminating orphan plan or a section 457(b)
plan, no fee or payment is due at the time
of filing. See the instructions for line 8(e)
and line 8(f) for additional information.
Attach a check to Form 8951 payable
to the “United States Treasury” for the full
amount of the fee. If you do not
include the full amount of the fee, your
submission may be returned or closed with
no action. In addition, include a photocopy
of the check with your VCP submission.
If you have multiple plans (for example, a
profit-sharing and a money purchase
plan), submit a separate VCP
submission (including a separate Form
8951) for each plan. Submit a separate
check, including a photocopy of the
check, for each VCP submission.
Your check may be converted to an
electronic fund transfer. An electronic fund
transfer is the process by which the IRS
electronically instructs your financial
institution to transfer funds from your
account to the Treasury's account,
rather than processing your check. By
sending your completed, signed check
to the IRS, you authorize the IRS to copy
your check and to use the account
information from your check to make an
electronic fund transfer from your account
for the same amount as the check. If the
electronic fund transfer cannot be
processed for technical reasons, you
authorize the IRS to process the copy of
your check. The electronic fund transfer
from your account will usually occur within
24 hours, which is faster than a check is
normally processed, so it is important
that you have sufficient funds available in
your checking account when you send the
IRS your check. Your financial institution
will not return your cancelled check to you.
Information about correcting plan errors
and examples of how to determine the user
fee is available at www.irs.gov/retirement-
plans/correcting-plan-errors.
Specific Instructions
Lines 1–5
Lines 1 through 5 should correspond to the
information you entered for line 1a, 1i, 4b,
4a, and 4e, respectively, on the related
Form 8950, Application for Voluntary
Correction Program (VCP) under the
Employee Plans Compliance Resolution
System (EPCRS).
Submission of Additional Fees
Line 6
The IRS's office of Employee Plans
Voluntary Compliance may contact you
regarding additional fees that may be due
for a previously submitted VCP case. If you
are instructed to submit an additional fee,
file Form 8951 along with a check for the
additional user fee, a copy of the check
and an appropriate cover letter. Complete
lines 1–5. It is important to complete line 6
by checking the box and entering the
amount of the additional fee you are
submitting plus the nine-digit VCP case
number that has been assigned to your
VCP submission. No other items on the
Form 8951 need to be completed. Once a
VCP submission has been mailed to the
IRS, an applicant should not mail any
checks to the IRS for any fee matters
unless the applicant has received specific
instructions from the IRS.
User Fee for VCP Submissions
Line 7
For qualified retirement plans established
under section 401(a) or 403(b), enter the
amount of the applicable general user fee
you are including with your VCP
submission. The general user fee amounts
for these types of retirement plans are
based upon the number of plan
participants. Follow the Determining the
Proper User Fee section in these
instructions, later. Do not complete this
item if you qualify for a reduced or
alternative VCP fee listed on line 8. For the
current user fees, go to the applicable
annual revenue procedure on IRS.gov at
www.irs.gov/retirement-plans/voluntary-
correction-program-fees.
Lines 8(a)–(f)
Check the appropriate box and if
applicable, enter the user fee for VCP
submissions involving reduced or
alternative fees for certain section 401(a)
and section 403(b) plans, SEP, SARSEP, or
SIMPLE IRA retirement plans; group
submissions; terminating orphan plans;
457(b) plans and minor modifications of a
previously issued compliance statement.
For the current user fees, go to the
applicable annual revenue procedure on
IRS.gov at www.irs.gov/retirement-plans/
voluntary-correction-program-fees.
• Line 8(a). For section 401(a) and section
403(b) plans, a reduced user fee may be
available under limited circumstances.
• Line 8(b). The VCP submission is limited
to a request for a minor modification of a
previously issued compliance statement
and the request is mailed to the IRS before
the end of the correction period provided
for in the compliance statement.
• Line 8(c). There is a special user fee for a
SEP, SARSEP, or a SIMPLE IRA VCP
submission.
• Line 8(d). If the VCP submission is a
group submission from an eligible
organization for section 401(a) and section
403(b) plans, the user fee is based on the
number of plans affected by the failure
described in the VCP submission. An initial
user fee payment must be included with
the submission and must be attached to
Form 8951. An additional user fee may also
apply. The IRS will request the additional
fee, if applicable.
• Line 8(e). The IRS has discretionary
authority to waive the user fee in the case
of a terminating orphan plan, if requested
by an eligible party. A VCP applicant who is
an eligible party can request that the user
fee be waived. Include a written
explanation that explains why a waiver
should be granted.