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Common abbreviations the you may encounter for private letter rulings are PLR and LTR, both indicate the same item. A determination letter is similar in purpose and nature to a private letter ruling, except that it is issued by the office of the local IRS district director not the national office of the IRS.
What Is a Determination Letter? A determination letter is a formal document issued by the Internal Revenue Service (IRS) that indicates whether or not a company's employee benefit plan has been found to meet the minimum legal requirements for special tax treatment.
A ?determination letter? is a written determination issued by an IRS Director that applies the principles and precedents previously announced by the IRS to a specific set of facts.
However, if you need to apply for a determination letter, use Form 5300, available on the IRS website. To amend a pre-approved plan, use Form 5307. If you're terminating a plan, use Form 5310.
A favorable determination letter: is issued by the IRS in response to a request by a plan sponsor as to the qualified status of its retirement plan under IRC Section 401(a). expresses the IRS's opinion regarding the form of the plan.