Regulatory and Legislative

IRS Provides EPCRS Guidance Related to SECURE 2.0

The IRS has issued Notice 2023-43 to address questions and provide interim guidance related to Section 305 of SECURE 2.0. Section 305 provided for expansion of the Employee Plans Compliance Resolution System (EPCRS), and directs the Secretary of the Treasury to update EPCRS guidance within two years of enactment of SECURE 2.0. Revenue Procedure 2021-30 contains the current iteration of EPCRS.

Section 305 of SECURE 2.0 allows self-correction of any “eligible inadvertent failure” and provides for an indefinite correction period so long as correction is completed within a reasonable period after the error is discovered. An eligible inadvertent failure is one that occurs despite the existence of sufficient practices and procedures and is not egregious or abusive. Importantly, Notice 2023-43 specifies that plan sponsors can self-correct certain eligible inadvertent failures before the update of Revenue Procedure 2021-30, subject to conditions and limitations outlined in Q&As 1-11.

Section 305 of SECURE 2.0 also directs the Secretary of the Treasury to allow IRA custodians to address eligible inadvertent failures with respect to IRAs. Q&A 12 specifies that IRA custodians may not correct an eligible inadvertent failure under EPCRS before the release of updates to Revenue Procedure 2021-30.

The Department of Treasury and the IRS invite comments on this notice by August 23, 2023.

Regulatory and Legislative

DOL Issues Final Rule Updating Davis-Bacon Regulations

DOL Issues Final Rule Updating Davis-Bacon Regulations

The Department of Labor has issued a final rule updating the Davis-Bacon Act and the Davis-Bacon Related Acts nearly 40 years after the Department last completed a comprehensive revision of the guidelines.

Regulatory and Legislative

Deadline Relief for Virgin Islands Water Supply

Deadline Relief for Virgin Islands Water Supply

The Internal Revenue Service has announced the postponement of certain tax-related deadlines for victims of taxpayers impacted by elevated levels of lead and copper in water supply in Saint Croix, US Virgin Islands.