User 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.
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