IRS Increases User Fees for Certain Requests for Private Letter Rulings and Requests for Determination on Plan Termination

On December 28, 2018, the Internal Revenue Service ("IRS") issued Revenue Procedure 2019-1, Revenue Procedure 2019-2, Revenue Procedure 2019-3, Revenue Procedure 2019-4, Revenue Procedure 2019-5 and Revenue Procedure 2019-7. See bulletins here. These Revenue Procedures became effective January 2, 2019, and update the annual Revenue Procedures, which set forth the procedures for Determination Letter requests and Private Letter Ruling requests.

Importantly, these Revenue Procedures increase the user fees for certain requests. For example, effective February 2, 2019, the user fee to submit a request for a Private Letter Ruling, under the jurisdiction of the Associate Chief Counsel, will be increased from $28,300 to $30,000, and effective July 1, 2019, the user fee to submit an Application for Determination for a Terminating Plan (IRS Form 5310) will be increased from $2,300 to $3,000. However, the user fee to submit a request for a Private Letter Ruling, under the jurisdiction of the Employee Plans Office, remains at $10,000; the user fee to submit a request for a determination letter for an individually designed plan remains at $2,500; and the user fee for regular submissions, under the Voluntary Correction Program ("VCP") under the Employee Plans Compliance Resolution System ("EPCRS"), remains the same ($1,500 for plans with assets of $500,000 or less, $3,000 for plans with total assets in excess of $500,000 to $10,000,000, and $3,500 for plans with assets of over $10,000,000). There were other user fee adjustments, but the ones mentioned are the user fees most often experienced by our clients.

For more information regarding the user fee increases under these updated Revenue Procedures, contact Gary Blachman, Audra Ferguson-Allen, Sarah Funke, Rob Gauss, Lisa Erb Harrison, Melissa Proffitt, Tara Sciscoe, Chris Sears, or the Ice Miller Employee Benefits attorney with whom you work.

This publication is intended for general information purposes only and does not and is not intended to constitute legal advice. The reader should consult with legal counsel to determine how laws or decisions discussed herein apply to the reader’s specific circumstances.