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HomeMy WebLinkAboutDocumentation_Pension Public Safety_Tab 01_01/28/2009McWilliams, Lori From: Bonni S. Jensen [bsjensen@hpjlaw.com] Sent: Tuesday, January 27, 2009 9:52 AM To: McWilliams, Lori; Laur, Betty Cc: Ed Sabin; Karen Amenita; Angela Twomey Subject: Tequesta Public Safety Officers Pension Trust Fund -IRS Determination Letter Lori, As you know, the Village of Tequesta Public Safety Officers' Pension Trust Fund has decided to request a determination letter from the IRS. Based upon my review of the document, the required changes were not made during the time period that the IRS required them to be made (in the 1990s or 2000). The IRS has a program to correct such errors and if we file before January 31, 2009 (the actual filing date is February 2, 2009), the fee for that program (Voluntary Correction Program or VCP) is one half of the normal fee. For example, for a fund with between 21-50 participants (active, retired and deferred vested members are included in participants) the regular fee is $1,800 so the reduced fee is $500. I believe that it is in the best interest of the Fund to file now and receive the discounted price. However, the Fund does have the opportunity to seek a determination letter and VCP filing again by filing after 2/1/10 but before 1/31/11. However, the fee is not expected to be discounted and may even be raised. We can complete the filing for the deadline, however, in addition to the check for $1,000, I will need an additional check payable to the United States Treasury for $500 for the VCP fee. Just to confirm the Firefighters do collectively bargain their benefits, right? Please contact me to discuss. Thanks! Bonni S. Jensen <bsiensen(~hp~law.com> Hanson, Perry & Jensen, P.A. 400 Executive Center Drive, Suite 207 West Palm Beach, Florida 33401 Telephone: (561)686-6550 Facsimile: (561)686-2802 CONFIDENTIALITY NOTICE: This communication is confidential, may be privileged and is meant only for the intended recipient. If you are not the intended recipient, please notify the sender ASAP and delete this message from your system. IRS CIRCULAR 230 NOTICE: To the extent that this message or any attachment concerns tax matters, it is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law. 1 401(a)(17) Limitation on Compensation For any person who first becomes a member in any plan year beginning on or after January 1, 1996, compensation for any plan year shall not include any amounts in excess of the Internal Revenue Code s. 401(a)(17) limitation (as amended by the Omnibus Budget Reconciliation Act of 1993), which limitation shall be adjusted as required by federal law for qualified government plans and shall be further adjusted for changes in the cost of living in the manner provided by Internal Revenue Code s. 401(a)(17)(B). For any person who first became a member prior to the first plan year beginning on or after January 1, 1996, the limitation on compensation shall be not less than the maximum compensation amount that was allowed to be taken into account under the plan as in effect on July 1, 1993, which limitation shall be adjusted for changes in the cost of living since 1989 in the manner provided by Intemal Revenue Code s. 401(a)(17)(1991). H:\Tequesta PS 1011\Plan Docs & Rules\401(a)(17) Limitation on Compensation.wpd 401(a)(31) Rollovers A. Direct transfers of eligible rollover distributions. 1. General. This subsection applies to distributions made on or after January 1, 1993. Notwithstanding any provision of the plan to the contrary that would otherwise limit a distributee's election under this subsection, a distributee may elect, at the time and in the manner prescribed by the board of trustees, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover. 2. Definitions a. Eligible rollover distribution: An eligible rollover distribution is any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover does not include any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee's designated beneficiary, or for a specified period of ten years or more and any distribution to the extent such distribution is required under section 401(a)(9) of the Code. b. Eligible retirement plan: An eligible retirement plan is an individual retirement account described in section 408(a) of the Code, an individual retirement annuity described in section 408(b) of the Code, a qualified trust, an annuity plan described in section 403(a) of the Code, an eligible deferred compensation plan described in §457(b) which is maintained by an eligible employer described in §457(e)(1)(A) of the Code or an annuity contract described in 403(b) of the Code, that accepts the distributee's eligible rollover distribution. c. Distributee: A distributee includes an employee or former employee. In addition, the employee's or former employee's surviving spouse and the employee's or former employee's spouse or former spouse who is entitled to payment for alimony and child support under an income deduction order, are distributees with regard to the interest of the spouse or former spouse. d. Direct rollover. A direct rollover is a payment by the plan to the eligible retirement plan specified by the distributee. H:\Tequesta PS 1011\Plan Docs & Rules\401(a)(31) Rollovers.wpd Form 2~4~ Power of Attorney (Rev. June 2008) and Declaration of Representative Department of the Treasury - T e or rint. - See the se crate instructions. Internal Revenue Service ~ p p Power of Attorney Caution: Form 2848 will not be honored for 1 Taxpayer information. Taxpayer(s) must Taxpayer name(s) and address Village of Tequesta 345 Tequesta Drive Tequesta, FL 33469 other than representation before the lRS and date this form on page 2, line 9. Social security number(s) For IRS Use Only Received by: Name Telephone Function Date / / Employer idenYrfication number 59 6044081 Daytime telephone number Plan number (if applicable) ( 561 ) 575-6200 hereby appoint(s) the following representative(s) as attorney(s)-in-fact: 2 Representative(s) must sign and date this form on page 2, Part II Name and address CAF No. ---------------------------------------- Bonni S. Jensen, Esquire, Hanson, Perry 8~ Jensen, PA Telephone No. 561-686-6550 --------------------------------- 400 Executive Center Dr, Ste 207, West Palm Beach, FL Fax No. 561-686-2802 -- - ----- ----- P----------------------- 33401 Check if new: Address ^ Tele hone No. ^ Fax No. ^ Name and address CAF No. ---------------------------------------- Telephone No- --------------------------------- Fax No- ---------------------------------------- Check if new: Address ^ Telephone No. ^ Fax No. ^ Name and address CAF No. ---------------------------------------- Telephone No- --------------------------------- Fax No- ----------------------------------- ---- _ _ Check if new: Address ^ Telephone No. ^ Fax No. ^ to represent the taxpayer(s) before the Internal Revenue Service for the following tax matters: 3 Tax matters Type of Tax (Income, Employment, Excise, etc.) or Civil Penalty (see the instructions for line 3) Tax Form Number (1040, 941, 720, etc.) Year(s) or Period(s) (see the instructions for line 3) Determination Letter 5300 Voluntary Correction Program (VCP) Appendices E, F 8 F Schedule 2 4 Specific use not recorded on Centralized Authorization File (CAF). If the power of attorney is for a specific use not recorded on CAF, check this box. See the instructions for Line 4. Specific Uses Not Recorded on CAF . - ^ 5 Acts authorized. The representatives are authorized to receive and inspect confidential tax information and to perform any and all acts that I (we) can perform with respect to the tax matters described on line 3, for example, the authority to sign any agreements, consents, or other documents. The authority does not include the power to receive refund checks (see line 6 below), the power to substitute another representative or add additional representatives, the power to sign certain returns, or the power to execute a request for disclosure of tax returns or return information to a third party. See the line 5 instructions for more information. Exceptions. An unenrolled return preparer cannot sign any document for a taxpayer and may only represent taxpayers in limited situations. See Unenrolled Return Preparer on page 1 of the instructions. An enrolled actuary may only represent taxpayers to the extent provided in section 10.3(d) of Treasury Department Circular No. 230 (Circular 230). An enrolled retirement plan administrator may only represent taxpayers to the extent provided in section 10.3(e) of Circular 230. See the line 5 instructions for restrictions on tax matters partners. In most cases, the student practitioner's (levels k and I) authority is limited (for example, they may only practice under the supervision of another practitioner). List any specific additions or deletions to the acts otherwise authorized in this power of attorney: ---_-____________________________________ ---------------------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------------------------------- 6 Receipt of refund checks. If you want to authorize a representative named on line 2 to receive, BUT NOT TO ENDORSE OR CASH, refund checks, initial here and list the name of that representative below. Name of representative to receive refund check(s) - For Privacy Act and Paperwork Reduction Act Notice, see page 4 of the instructions. Cat. No. 11980) Form 2848 (Rev. 6-2008) Form 2848 (Rev. 6-2008) Page 2 7 Notices and communications. Original notices and other written communications will be sent to you and a copy to the first representative listed on line 2. a If you also want the second representative listed to receive a copy of notices and communications, check this box . - ^ b If you do not want any notices or communications sent to your representative(s), check this box - ^ 8 Retention/revocation of prior power(s) of attorney. The filing of this power of attorney automatically revokes all earlier power(s) of attorney on file with the Internal Revenue Service for the same tax matters and years or periods covered by this document. If youdo not want to revoke a prior power of attorney, check here. - ^ YOU MUST ATTACH A COPY OF ANY POWER OF ATTORNEY YOU WANT TO REMAIN IN EFFECT. 9 Signature of taxpayer(s). If a tax matter concerns a joint return, both husband and wife must sign if joint representation is requested, otherwise, see the instructions. If signed by a corporate officer, partner, guardian, tax matters partner, executor, receiver, administrator, or trustee on behalf of the taxpayer, I certify that I have the authority to execute this form on behalf of the taxpayer. - IF NOT SIGNED AND DATED, THIS POWER OF ATTORNEY WILL BE RETURNED. Signature Date Title (if applicable) Print Name PIN Number ---------- ------------------------------------------- Print name of taxpayer from line 1 if other than individual ---------------------- --------------------------------------- Signature Print Name PIN Number ------ - ---- - ------ Date Title (if applicable) Declaration of Representative Caution: Students with a special order to represent taxpayers in qualified Low Income Taxpayer Clinics or the Student Tax Clinic Program (levels k and I), see the instructions for Part ll. Under penalties of perjury, I declare that: • I am not currently under suspension or disbarment from practice before the Internal Revenue Service; • I am aware of regulations contained in Circular 230 (31 CFR, Part 10), as amended, concerning the practice of attorneys, certified public accountants, enrolled agents, enrolled actuaries, and others; • I am authorized to represent the taxpayer(s) identified in Part I for the tax matter(s) specified there; and • I am one of the following: a Attorney-a member in good standing of the bar of the highest court of the jurisdiction shown below. b Certified Public Accountant-duly qualified to practice as a certified public accountant in the jurisdiction shown below. c Enrolled Agent-enrolled as an agent under the requirements of Circular 230. d Officer-a bona fide officer of the taxpayer's organization. e Full-Time Employee-a full-time employee of the taxpayer. f Family Member-a member of the taxpayer's immediate family (for example, spouse, parent, child, brother, or sister). 9 Enrolled Actuary-enrolled as an actuary by the Joint Board for the Enrollment of Actuaries under 29 U.S.C. 1242 (the authority to practice before the Internal Revenue Service is limited by section 10.3(d) of Circular 230). h Unenrolled Return Preparer-the authority to practice before the Internal Revenue Service is limited by Circular 230, section 10.7(c)(1)(viii). You must have prepared the return in question and the return must be under examination by the IRS. SeeUnenrolled Return Preparer on page 1 of the instructions. k Student Attorney-student who receives permission to practice before the IRS by virtue of their status as a law student under section 10.7(d) of Circular 230. 1 Student CPA-student who receives permission to practice before the IRS by virtue of their status as a CPA student under section 10.7(d) of Circular 230. r Enrolled Retirement Plan Agent-enrolled as a retirement plan agent under the requirements of Circular 230 (the authority to practice before the Internal Revenue Service is limited by section 10.3(e)). - IF THIS DECLARATION OF REPRESENTATIVE IS NOT SIGNED AND DATED, THE POWER OF ATTORNEY WILL BE RETURNED. See the Part II instructions. Designation-Insert above letter (a-r) Jurisdiction (state) or identification Signature Date a Florida Form 28~ (Rev. 6-2008)