Washington Tax Alert January 16, 2017 (increased user fees)
Washington Tax Alert from Don Barnes, [email protected]
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.
Washington, DC 20006
E-Mail: [email protected]ontaxlaw.com