New IRS fee schedule for rulings and determination letters.NEW IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. FEE SCHEDULE FOR RULINGS AND DETERMINATION LETTERS Under the Revenue Act of 1987, the Internal Revenue Service must adjust user fees for private letter rulings and determination letters to take into account the average time spent and the difficulty of the subject matter of the requests. A 1989 IRS study of the direct and indirect costs Indirect costs are costs that are not directly accountable to a particular function or product; these are fixed costs. Indirect costs include taxes, administration, personnel and security costs. See also
Among the fees increased were the following: * Chief counsel ruling requests on accounting periods were raised to $200. * Chief counsel ruling requests for changes in accounting method will now cost $500. * The fee for national office ruling requests for employee plans and exempt organizations has been increased to $1,250. * Master and prototype employee plans to be used by 50 or more employers but submitted by one sponsor now entail entail, in law, restriction of inheritance to a limited class of descendants for at least several generations. The object of entail is to preserve large estates in land from the disintegration that is caused by equal inheritance by all the heirs and by the ordinary a fee of $3,000. However, not all fees were raised. The fee for determination letter requests for certain employee plan terminations Plan termination for ERISA defined benefit pension plans, is either the voluntary act of a pension plan sponsor who no longer believes that the costs of providing the pension outweighs its benefits, or the involuntary termination by the PBGC when the federal pension agency believes was lowered from $450 to $375 and the former $1,000 fee for certain opinion letter requests from individual retirement arrangement sponsors in the employee master plans and prototype program was cut in half, to $500. Unchanged were the $50 fee for calculating the tax treatment of retirement annuity annuity: see insurance. annuity Payment made at a fixed interval. A common example is the payment received by retirees from their pension plan. There are two main classes of annuities: annuities certain and contingent annuities. programs for retirees and the $150 fee for determination letter requests for small tax-exempt tax-ex·empt adj. 1. Not subject to taxation, as the capital or income of a philanthropic organization. 2. Producing interest that is exempt from income tax: tax-exempt bonds. n. organizations. The new fee schedule is generally effective for rulings issued after March 31, 1990, but increases for opinions and determination letter requests on employee plans and exempt organizations have been postponed until October October: see month. 1, 1990. The fee schedule was contained in revenue procedure 90-17, published in Internal Revenue Bulletin 1990-12. |
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