NASCOE has received several submissions concerning PL-271 and the AGI process in general. We have been sharing these concerns with WDC through various channels. One particular concern revolved around a February 26th deadline to begin enforcing that IRS determinations or SED determinations be received within 120 days of the producer’s certification. While discussions continue, WDC has issued the following response:
NATIONAL OFFICE RESPONSE:
Notice PL-271 provided information on AGI compliance and the upcoming start of a 120-day time clock for overpayments due to AGI. This time clock was expected to begin February 26, 2016. The impacts of the 120 day time clock are still under discussion at the national office and as a result, the effective date will be delayed. Additional information will be forthcoming.
3-PL (Rev 2) Amendment 3 was issued on 10/6/2016 containing several updates to Subsidiary policy and software. Highlights include:
1) Par 25C has been updated to state that if the AD-1026 is mailed, the Subsidiary Record should be updated with the post mark date.
2) Par 26J contains new timeframes for State and County offices to ensure that producers are updated with an IRS or SED determination. Starting December 2, 2016, the window for obtaining an IRS or SED determination after certification will be reduced from 700 to 180 days. If the producer previously received payments for that program year, the producer’s payment will automatically be displayed on the Pending Overpayment Report after 180 days.
3) Par 26J also contains new procedure for situations where the IRS does not update the IRS determination after 3 attempts to mail the CCC-941 and IRS-3210 to the IRS. County offices will confirm that the producer is not on the Mismatch Report and submit documentation to STO showing that 3 attempts were made to send the producer’s AGI certification to the IRS and that all steps have been taken to ensure the CCC-941 has been properly completed and submitted. If the producer received an IRS or SED determination of compliance in the three preceding years, the CCC-941 flags will be updated as “Mismatch Verified.”
4) Par 41C has been updated to clarify that for businesses with an EIN, the SED Farmer or Rancher flag shall only be updated if the majority interest of all members have certified compliance as an SED farmer or rancher.
Additional guidance will be provided on changes to the AGI validation process for producers not updated by the IRS after being submitted 3 times. The AGI Validation Guide will be updated shortly as well.