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Law Offices of Donald A. Barnes, PLLC
818 Connecticut Avenue, N.W., Suite 1200
Washington, DC 20006
Telephone: (202) 728-4407
Cell: (202) 360-0275
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Washington Tax Alert January 16, 2017 (increased user fees)

Washington Tax Alert from Don Barnes, dbarnes@washingtontaxlaw.com
January 16, 2017

The Internal Revenue Service recently announced increases in user fees for letter rulings and other applications. The increased user fees will be effective February 2, 2017.

  • The user fee for non-automatic accounting method changes will increase from $8,600 to $9,500.
  • The user fee for non-automatic changes in annual accounting periods will increase from $4,200 to $5,800.
  • The user fee for 9100 ruling applications will increase from $9,800 to $10,000.

The user fee for all other ruling requests remains unchanged at $28,300. This amount can be expensive for ruling requests seeking relief from a taxpayer's inadvertent actions, such as actions that jeopardize an S election.

The user fee for advance pricing agreements is $60,000, and the user fee for pre-filing agreements is $218,600. Two years ago, the user fee to obtain a pre-filing agreement was only $50,000.

The Service's substantial increases in user fees has been the subject of increasing criticism.

Law Offices of Donald A. Barnes, PLLC
818 Connecticut Avenue, N.W.
Suite 1200
Washington, DC 20006
Telephone: (202) 728-4407
Cell: (202) 360-0275
E-Mail: dbarnes@washingtontaxlaw.com
Website: www.washingtontaxlaw.com