Common use of Acknowledgement Letter Clause in Contracts

Acknowledgement Letter. Within 30 calendar days after the compliance statement is issued, a Plan Sponsor that wishes to agree to the terms of the compliance statement must send a signed acknowledgement letter to the Service, agreeing to the terms of the compliance statement. If the Plan Sponsor does not send the Service a signed acknowledgement letter within 30 calendar days, the plan may be referred to Employee Plans Examinations for examination consideration. Once the compliance statement has been issued (based on the information provided), the Plan Sponsor cannot request a modification of the compliance terms except by a new request for a compliance statement. However, if the requested modification is minor and is postmarked no later than 30 days after the compliance statement is issued, the VCR compliance fee for the modification will be the lesser of the original compliance fee or $1,250.