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August 12, 2020

IRS announces 2021 user fee increases for certain determination letter and letter ruling requests

The IRS has announced (Announcement 2020-14) that, effective January 4, 2021, increased user fees will be charged on requests for certain types of private letter rulings and determination letters. Relatively minor increases will apply to determination letter requests for employee benefit plans (Form 5300), adopters of modified volume submitter plans (Form 5307), and terminating plans (Form 5310). But, the current $1,000 user fee on letter ruling requests for five-year automatic extension of the amortization period will increase to $6,500.