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Washington Tax Alert January 3, 2012

Washington Tax Alert from Don Barnes, [email protected]

January 3, 2012

The Internal Revenue Service has announced changes in user fees for private letter rulings and accounting method changes, effective February 5, 2012. See Rev. Proc. 2012-1.

The user fee for private letter rulings, other than ruling requests for relief under Treas. Reg. § 301.9100-3, will be increased from $14,000 to $18,000. The user fee for 9100 applications will be decreased from $14,000 to $10,000.

The user fee for changes in accounting method (Form 3115) will be increased from $4,200 to $7,000. No user fee is required if the change in accounting method qualifies for automatic consent under Rev. Proc. 2011-14, or various other automatic change procedures.

The user fee for applications relating to annual accounting periods (Form 1128) and requests to use a fiscal year based on a business purpose (Form 2553) will be decreased from $3,200 to $2,700.