IRS Reduces Fee for Terminating Plan Determination Letter

Plan sponsors who have already submitted an Application for Determination for Terminating Plan in 2018 will receive a refund of $700.

In Revenue Procedure 2018-19, the Internal Revenue Service (IRS) announced a change in the Schedule of User Fees, with respect to applications on Form 5310, Application for Determination for Terminating Plan.

When the agency ended its determination letter program for individually designed plans, it stated that a plan can only apply for a determination letter in three cases—one of which is when a plan is terminating.

The IRS explains that Appendix A of Revenue Procedure 2018-4 sets forth the specific fee applicable with respect to each category or subcategory of submission under the revenue procedure.  Section .06 of Appendix A sets forth the fees applicable to determination letters.  The user fee applicable to a determination letter request submitted on Form 5310 provided in section .06(1)(c) of Appendix A was increased from $2,300 for 2017 to $3,000 for 2018.

However, the new Revenue Procedure reduces the fee back to $2,300, effective January 2, 2018.  The agency says applicants who paid the $3,000 user fee listed in Revenue Procedure 2018-4 will receive a refund of $700.