Compliance April 27, 2006

IRS Hikes User Charges

April 27, 2006 (PLANSPONSOR.com) - The Internal Revenue Service (IRS) has hiked some user fees including fees for letter rulings and determination letters for Employee Plans (EP) and Exempt Organizations (EO) for 2006.
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The first phase of increases became effective February 1, 2006, according to an AccountingWeb.com news report, and the second phase will go into effect July 1, 2006.

Two increases that became effective in February are:

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  • EP letter ruling fees increased to a range between $200 and $14,500.
  • EO letter ruling fees increased to a range between $275 and $8,700.

The increased becoming effective in July 1, 2006, include:

  • Under the revised and centralized EP determination letter program, fees for opinion and advisory letters and determination letters involving Forms 5300, 5307 and 5310, will increase to a range between $200 and $15,000 from the current range between $125 and $6,500.
  • EO fees for determination letters and requests for group exemption letters, which currently range from $150 to $500, will increase to between $300 and $900.

The IRS further notes that EP compliance fees and compliance correction fees under the employee Plans Compliance Resolution Systems (EPCRS) are not included in this procedure and remain at their current levels.

More information on user fee increases can be found in Revenue Procedures 2006-1 and 2006-8.

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