IRS user fees likely to increase

Tax Hot Topics - IRS user fees likely to increaseUser fees the IRS charges to taxpayers for certain services, such as pre-filing agreements (PFAs), closing agreements, private letter rulings and other applications to resolve or prevent controversies, are likely to increase in the future, the IRS said on May 4.

The IRS expects to revise a number of existing user fees and to implement new user fees for some additional services in the “near future,” the agency said. The user fee to participate in the PFA program was increased concurrently with the announcement under Rev. Proc. 2016-30 – from $50,000 to $134,300.  The increase is due to constraints on IRS resources for tax administration, the IRS said.

Currently, the user fee for a private letter ruling is $28,300, and the user fee for so-called “9100 relief” is $9,800. User fees for such rulings are announced each year in the first revenue procedure of the calendar year. The IRS routinely reduces or eliminates user fees for lower-income taxpayers.

Tax professional standards statement
This content supports Grant Thornton LLP’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the topics presented herein, we encourage you to contact us or an independent tax professional to discuss their potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this content may be considered to contain written tax advice, any written advice contained in, forwarded with or attached to this content is not intended by Grant Thornton LLP to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.

The information contained herein is general in nature and is based on authorities that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice provided by Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of tax and nontax factors not described herein. Contact Grant Thornton LLP or other tax professionals prior to taking any action based upon this information. Changes in tax laws or other factors could affect, on a prospective or retroactive basis, the information contained herein; Grant Thornton LLP assumes no obligation to inform the reader of any such changes. All references to “Section,” “Sec.,” or “§” refer to the Internal Revenue Code of 1986, as amended.