Rules Updated On User Fees For Employee Plans And Exempt Organizations.
Rev. Proc. 2002-8; 2002-1 C.B. 252
- Institutional AuthorsInternal Revenue Service
- Code Sections
- Subject Area/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2002-923 (14 original pages)
- Tax Analysts Electronic Citation2002 TNT 9-16
Superseded by Rev. Proc. 2003-8
Rev. Proc. 2002-8
TABLE OF CONTENTS
SECTION 1. PURPOSE
SECTION 2. CHANGES
.01 In general
.02 New application procedures for multiple employer plans
.03 Elimination of user fees for certain determination letter
applications
.04 Changes to fee schedules
SECTION 3. BACKGROUND
.01 Legislation authorizing user fees
.02 Related revenue procedures
SECTION 4. SCOPE
.01 Requests to which user fees apply
.02 Requests and other actions that do not require the payment
of a user fee
.03 Exemptions from the user fee requirements
SECTION 5. DEFINITIONS
SECTION 6. FEE SCHEDULE
EMPLOYEE PLANS USER FEES
.01 Letter ruling requests
.02 Requests for certain administrative exemptions
.03 Administrative scrutiny determinations with respect to
separate lines of business
.04 Opinion letters and advisory letters on master and prototype
plans
.05 Opinion letters on prototype individual retirement accounts
and/or annuities, simplified employee pensions,
SIMPLE IRAs, SIMPLE IRA Plans, Roth IRAs and dual-purpose IRAs
.06 Determination letters
.07 Advisory letters on volume submitter plans
EXEMPT ORGANIZATIONS USER FEES
.08 Letter rulings
.09 Determination letters and requests for group exemption
letters
.10 Summary of Exempt Organization fees
SECTION 7. MAILING ADDRESS FOR REQUESTING LETTER RULINGS,
DETERMINATION LETTERS, ETC
.01 Matters handled by EP or EO Technical
.02 Matters handled by EP or EO Determinations
SECTION 8. REQUESTS INVOLVING MULTIPLE OFFICES, FEE CATEGORIES,
ISSUES, TRANSACTIONS, OR ENTITIES
.01 Requests involving several offices
.02 Requests involving several fee categories
.03 Requests involving several issues
.04 Requests involving several unrelated transactions
.05 Requests for separate letter rulings for several entities
SECTION 9. PAYMENT OF FEE
.01 Method of payment
.02 Transmittal forms
.03 Effect of nonpayment or payment of incorrect amount
SECTION 10. REFUNDS
.01 General rule
.02 Examples
SECTION 11. REQUEST FOR RECONSIDERATION OF USER FEE
SECTION 12. EFFECT ON OTHER DOCUMENTS
SECTION 13. EFFECTIVE DATE
SECTION 14. PAPERWORK REDUCTION ACT
APPENDIX
SECTION 1. PURPOSE
This revenue procedure provides guidance for complying with the user fee program of the Internal Revenue Service as it pertains to requests for letter rulings, determination letters, etc. on matters under the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division; and requests for administrative scrutiny determinations under Rev. Proc. 93-41, 1993-2 C.B. 536.
SECTION 2. CHANGES
.01 In general. This revenue procedure is a general update of Rev. Proc. 2001-8, 2001-1 I.R.B. 239.
.02 New application procedures for multiple employer plans. Announcement 2001-77, 2001-30 I.R.B. 83, established new determination letter application procedures, for multiple employer plans and modifies section 6.06. Under the new procedures, multiple employer plans applications for a determination letter can request either (1) a letter for the plan or (2) a letter for the plan and a letter for each employer maintaining the plan with respect to whom a separate Form 5300 is filed. If an applicant submits an application for the plan, the user fee for a single employer plan under section 6.06 will apply. If an applicant submits an application for the plan and each employer maintaining the plan (filing a separate Form 5300 application (completed through line 8) for each employer), the user fee for the application will be determined under the user fee scheduled for multiple employer plans in section 6.06.
.03 Elimination of fee for certain determination letter applications. Section 620 of the Economic Growth and Tax Relief Reconciliation Act of 2001, Pub. L. 107-16 (EGTRRA) directs the Internal Revenue Service not to require payment of user fees for request for determination letters with respect to the qualified status of certain pension benefit plans (generally plans maintained by employers with 100 or less employees). The provisions in section 620 of EGTRRA are effective with respect to a request for a determination letter made after December 31, 2001.
.04 Changes to Fee Schedule. The Employee Plans and Exempt Organizations user fees are increased for all categories except the reduced fee categories, the determination letter categories and the volume submitter categories.
SECTION 3. BACKGROUND
.01 Legislation authorizing user fees. Section 10511 of the Revenue Act of 1987, Pub. L. 100-203, 101 Stat. 1330-382, 1330- 446, enacted December 22, 1987, directed the Secretary of the Treasury or delegate (the "Secretary") to establish a program requiring the payment of user fees for requests to the Service for letter rulings, opinion letters, determination letters, and similar requests. The fees charged under the program (1) were to vary according to categories or subcategories established by the Secretary; (2) were to be determined after taking into account the average time for, and difficulty of, complying with requests in each category and subcategory; and (3) were to be payable in advance. The Secretary was to provide for exemptions and reduced fees under the program as the Secretary determined to be appropriate, but the average fee applicable to each category must not be less than the amount specified in the statute. The fees were to apply to requests made on or after February 1, 1988, and before September 30, 1990. Section 11319 of the Omnibus Budget Reconciliation Act of 1990, Pub. L. 101-508, 1991-2 C.B. 481, 511, extended the time during which the user fees would be applicable through September 30, 1995. Section 743 of the Uruguay Round Agreements Act, Pub. L. 103-465, 1995-1 C.B. 230, 239, extended the time during which the user fees would be applicable through September 30, 2000. Section 2 of the Tax Relief to Operation Joint Endeavor Participants Act, Pub. L. 104-117, 1996-3 C.B. 1, extended the time during which the user fees will be applicable through September 30, 2003.
.02 Related revenue procedures. The various revenue procedures that require payment of a user fee, or an administrative scrutiny determination user fee are described in the appendix to this revenue procedure.
SECTION 4. SCOPE
.01 Requests to which user fees apply. In general, user fees apply to all requests for letter rulings, opinion letters, determination letters, and advisory letters submitted by or on behalf of taxpayers, sponsoring organizations or other entities as described in this revenue procedure. Further, administrative scrutiny determination user fees, described in Rev. Proc. 93-41, are collected through the user fee program described in this revenue procedure. Requests to which a user fee or an administrative scrutiny determination user fee is applicable must be accompanied by the appropriate fee as determined from the fee schedule set forth in section 6 of this revenue procedure. The fee may be refunded in limited circumstances as set forth in section 10.
.02 Requests and other actions that do not require the payment of a user fee. Actions which do not require the payment of a user fee include the following:
(1) Requests for information letters as defined in Rev. Proc. 2002-4, page 127, this Bulletin.
(2) Elections pertaining to automatic extensions of time under § 301.9100-1 of the Procedure and Administration regulations.
(3) Use of forms which are not to be filed with the Service. For example, no user fee is required in connection with the use of Form 5305, Individual Retirement Trust Account, or Form 5305-A, Individual Retirement Custodial Account, in order to adopt an individual retirement account under § 408(a). This form should not be filed with the Service.
(4) In general, plan amendments whereby sponsors amend their plans by adopting, word-for-word, the model language contained in a revenue procedure which states that the amendment should not be submitted to the Service and that the Service will not issue new opinion, advisory, ruling or determination letters for plans that are amended solely to add the model language.
(5) Change in accounting period or accounting method permitted by a published revenue procedure that permits an automatic change without prior approval of the Commissioner.
(6) Compliance and Correction Fees. Compliance fees and compliance correction fees under the Voluntary Compliance Program (VCP) are not described in this procedure because they are compliance fees or compliance correction fees and not user fees. For further guidance, please see Rev. Proc. 2001-17, 2001-7 I.R.B. 589.
.03 Exemptions from the user fee requirements. The following exemptions apply to the user fee requirements. These are the only exemptions that apply:
(1) Departments, agencies, or instrumentalities of the United States that certify that they are seeking a letter ruling, determination letter, opinion letter or similar letter on behalf of a program or activity funded by federal appropriations. The fact that a user fee is not charged has no bearing on whether an applicant is treated as an agency or instrumentality of the United States for purposes of any provision of the Code.
(2) Requests as to whether a worker is an employee for federal employment taxes and federal income tax withholding purposes (chapters 21, 22, 23, and 24 of subtitle C of the Code) submitted on Form SS-8, Information for Use in Determining Whether a Worker is an Employee for Federal Employment Taxes and Income Tax Withholding, or its equivalent. Such a request may be submitted in connection with an application for a determination on the qualification of a plan when it is necessary to determine whether an employer-employee relationship exists. See section 6.14 of Rev. Proc. 2002-6, page 203, this Bulletin. In that case, although no user fee applies to the request submitted on Form SS-8, the applicable user fee must be paid in connection with the application for determination on the plan's qualification.
(3) Effective with respect to a determination letter application made after December 31, 2001, user fees for request for determination letters for pension benefit plans maintained by employers with 100 or less employees, as provided for in section 620 of EGTRRA.
SECTION 5. DEFINITIONS
The following terms used in this revenue procedure are defined in the pertinent revenue procedures referred to below, which are described in the appendix:
Administrative scrutiny determination Rev. Proc. 93-41
Adoption agreement Rev. Proc. 2000-20
Advisory letter Rev. Proc. 2000-20, Rev. Proc. 2002-6
Basic plan document Rev. Proc. 2000-20
Determination letter Rev. Proc. 90-27, Rev. Proc. 2002-4
Dual-purpose IRA Rev. Proc. 98-59
Group exemption letter Rev. Proc. 80-27
Information letter Rev. Proc. 2002-4
Letter ruling Rev. Proc. 2002-4
Mass submitter Rev. Proc. 87-50, Rev. Proc. 2000-20
Mass submitter plan Rev. Proc. 2000-20
Master plan Rev. Proc. 2000-20
Minor modification Rev. Proc. 87-50, Rev. Proc. 2000-20
Opinion letter Rev. Proc. 2000-20, Rev. Proc. 2002-4
Prototype plan Rev. Proc. 2000-20
Roth IRA Rev. Proc. 98-59
SIMPLE IRA Rev. Proc. 97-29
SIMPLE IRA Plan Rev. Proc. 97-29
Plan Sponsor Rev. Proc. 2000-20
Sponsoring organization Rev. Proc. 87-50, Rev. Proc. 2000-20
Volume submitter lead specimen plan Rev. Proc. 2000-20
Volume submitter plan Rev. Proc. 2002-6
Volume submitter specimen plan Rev. Proc. 2002-6
Word-for-word identical adoption Rev. Proc. 87-50, Rev. Proc. 2000-20
SECTION 6. FEE SCHEDULE
The amount of the user fee payable with respect to each category or subcategory of submission is as set forth in the following schedule.
CATEGORY FEE
EMPLOYEE PLANS USER FEES
.01 Letter ruling requests.
(1) Computation of exclusion for annuitant under § 72 $90
(2) Change in plan year (Form 5308) $140
Note: No user fee is required if the requested change is
permitted to be made pursuant to the procedure for automatic approval
set forth in Rev. Proc. 87-27, 1987-1 C.B. 769. In such a case, Form
5308 should not be submitted to the Service.
(3) Change in funding method $540
(4) Approval to become a nonbank trustee (see § 1.408-2(e) $3,520
of the Income Tax Regulations)
(5) Waiver of minimum funding standard, under § 412(d):
(a) Waiver of $1,000,000 or more $5,200
(b) Waiver of less than $1,000,000 $2,200
(6) Waiver of excise tax under § 4971(b):
(a) Waiver of $1,000,000 or more $5,200
(b) Waiver of less than $1,000,000 $2,220
(7) Waiver of the excise tax, under § 4971(f), on
failure to pay a liquidity shortfall:
(a) Waiver of $1,000,000 or more $5,200
(b) Waiver of less than $1,000,000 $2,200
(8) Letter ruling under Rev. Proc. 90-49, 1990-2 C.B. 620 $325
(9) Letter ruling involving the determination of the account
limit under § 419A(c) $2,470
(10) Individually designed simplified employee pension (SEP) $2,470
(11) All other letter rulings $2,470
Reduced fees, or augmented fee, applicable to all other letter
rulings:
(a) Letter ruling requests by or on behalf of eligible $600
retirement plans (within the meaning of
§ 402(c)(8)(B)) with assets of less
than $200,000
(b) Letter ruling requests from U.S. citizens and resident $600
alien individuals, domestic trusts, and domestic
estates whose "total income" as reported on their
federal income tax return (as amended) filed for
a full (12 months) taxable year ending before the
date the request is filed, plus any interest
income not subject to tax under § 103 (interest
on state and local bonds) for that period, is less
than $200,000
Note: The reduced fee applies to a married individual if the
combined gross income of the applicant and the applicant's spouse is
less than $200,000. The gross incomes of the applicant and the
applicant's spouse are not combined, however, if the applicant is
legally separated from his or her spouse and the spouses do not file
a joint income tax return with each other. In the case of a letter
ruling request from a domestic estate or trust that, at the time the
request is filed, has not filed an income tax return for a full
taxable year, the reduced fee will be applicable if the decedent's or
(in the case of an individual grantor) the grantor's total income as
reported on the last return filed for a full taxable year ending
before the date of death or the date of the transfer, taking into
account any additions required to be made to total income described
in this subparagraph, is less than $200,000.
(c) Letter ruling requests from organizations exempt $600
from income tax under "Subchapter F-Exempt
Organizations" with gross receipts of less than
$200,000
Note: An organization exempt from income tax under Subchapter
F must certify in its request for a letter ruling that its gross
receipts for the last full taxable year before the request was filed
were less than $200,000.
(d) In situations in which a taxpayer requests $200
substantially identical letter rulings for multiple
entities with a common member or sponsor, or for
multiple members of a common entity, each additional
letter ruling request after the $2,470 fee or the $600
reduced fee, as applicable, has been paid for the first
letter ruling request
(e) In situations in which a taxpayer requests a $200
single letter ruling involving substantially
identical issues of fact and law with respect to
multiple members of a common entity, for each
additional entity after the $2,470 fee or $600
reduced fee, as applicable, has been paid for
the first entity
.02 Requests for certain administrative exemptions.
Requests for administrative exemptions for participant- $2,470
directed transactions that are in compliance with the
regulations under § 404(c) of the Employee Retirement
Income Security Act of 1974 (ERISA) but may result in
prohibited transactions under § 4975
Note: The provisions of Rev. Proc. 75-26, 1975-1 C.B. 722, are
applicable to such requests.
.03 Administrative scrutiny determinations with respect to
separate lines of business.
(1) For the first separate line of business for which a $4,720
determination is requested
(2) For each additional separate line of business for $1,520
which a determination is requested
.04 Opinion letters and advisory letters on master and
prototype plans.
(1) Mass submitter M & P plan, per basic plan $3,520
document, new or amended, with one adoption agreement
(2) Mass submitter M & P plan, per each additional $460
adoption agreement
(3) Sponsor's word-for-word identical adoption of M $120
& P mass submitter's basic plan document (or an amendment
thereof), per adoption agreement
Note 1: Mass submitters that are sponsors in their own right
are liable for this fee.
Note 2: If a mass submitter submits, in any 12-month period
ending January 31, more than 300 applications on behalf of word-for-
word adopters with respect to a particular adoption agreement, only
the first 300 such applications will be subject to the fee; no fee
will apply to those in excess of the first 300 such applications
submitted within the 12-month period.
(4) Sponsor's minor modification of M & P mass $270
submitter's plan document, per adoption agreement
(5) Nonmass submission (new or amended) by M & P sponsor, $2,110
per adoption agreement
(6) M & P mass submitter's request for an advisory letter $570
with respect to the addition of optional provisions
following issuance of a favorable opinion letter (see
section 16.031(c) of Rev. Proc. 2000-20), per basic plan
document (regardless of the number of adoption agreements)
(7) M & P mass submitter's addition of new adoption $460
agreements after the basic plan document and
associated adoption agreements have been approved,
per adoption agreement
(8) Assumption of sponsorship of an approved M & P plan, $270
without any amendment to the plan document, by a new
entity, as evidenced by a change of employer
identification number
.05 Opinion letters on prototype individual retirement
accounts and/or annuities, simplified employee pensions, SIMPLE IRAs,
SIMPLE IRA Plans, and Roth IRAs.
(1) Mass submission of a prototype IRA, SEP, $1,250
SIMPLE IRA, SIMPLE IRA Plan, or Roth IRA, per
plan document, new or amended
(2) Sponsoring organization's word-for-word identical $120
adoption of mass submitter's prototype IRA, SEP,
SIMPLE IRA, SIMPLE IRA Plan, or Roth IRA, per plan
document or an amendment thereof
Note: If a mass submitter submits, in any 12-month period
ending January 31, more than 300 applications on behalf of word-for-
word adopters of prototype IRAs with respect to a particular plan
document, only the first 300 such applications will be subject to the
fee; no fee will apply to those in excess of the first 300 such
applications submitted within the 12-month period.
(3) Sponsoring organization's minor modification of mass $320
submitter's prototype IRA, SEP, SIMPLE IRA, SIMPLE IRA
Plan, or Roth IRA, per plan document
(4) Sponsoring organization's nonmass submission of $460
prototype IRA, SEP, SIMPLE IRA, SIMPLE IRA Plan,
or Roth IRA, per plan document
(5) Opinion letters on dual-purpose (combined
traditional and Roth) IRAs:
(a) Mass submission of a prototype dual-purpose $2,470
IRA, per plan document, new or amended
(b) Sponsoring organization's word-for-word $120
identical adoption of mass submitter's
prototype dual-purpose IRA, per plan
document or an amendment thereof
Note: If a mass submitter submits, in any 12-month period
ending January 31, more than 300 applications on behalf of word-for-
word adopters of prototype dual-purpose IRAs with respect to a
particular plan document, only the first 300 such applications will
be subject to the fee; no fee will apply to those in excess of the
first 300 such applications submitted within the 12-month period.
(c) Sponsoring organization's minor modification $650
of mass submitter's prototype dual-purpose
IRA, per plan document
(d) Sponsoring organization's nonmass submission $950
of prototype dual-purpose IRA, per plan
document
.06 Determination letters
(1) If the plan is intended to satisfy a design-based or
nondesign-based safe harbor, or if the applicant is not
electing to receive a determination with respect to any of
the general tests, and the applicant is not electing to
receive a determination with respect to the average benefit
test:
(a) Form 5300 $700
(b) Form 5307 $125
(c) Form 5310 $225
(d) Form 6406 $125
(e) Multiple employer plans (Form 5300):
(i) 2 to 10 Forms 5300 $700
(ii) 11 to 99 Forms 5300 $1,400
(iii) 100 to 499 Forms 5300 $2,800
(iv) Over 499 Forms 5300 $5,600
Note: In the case of a multiple employer plan that is adopted
by other employers after the initial submission, the fee would be the
same as in paragraph (1) above. If only one employer adopts the plan
in any subsequent year, the fee would be $700.
(f) Multiple employer plans (Form 5310):
(i) 2 to 10 employers $225
(ii) 11 to 99 employers $450
(iii) 100 to 499 employers $900
(iv) Over 499 employers $1,800
(2) If the applicant is electing to receive a
determination with respect to the average
benefit test and/or any of the general tests:
(a) Form 5300 $1,250
(b) Form 5307 $1,000
(c) Form 5310 $375
(d) Multiple employer plans (Form 5300):
(i) 2 to 10 Forms 5300 $1,250
(ii) 11 to 99 Forms 5300 $2,000
(iii) 100 to 499 Forms 5300 $3,500
(iv) Over 499 Forms 5300 $6,500
Note: In the case of a multiple employer plan that is adopted
by other employers after the initial submission, the fee would be the
same as in paragraph (2) above. If only one employer adopts the plan
in any subsequent year, the fee would be $1,250.
(e) Multiple employer plans (Form 5310):
(i) 2 to 10 employers $375
(ii) 11 to 99 employers $600
(iii) 100 to 499 employers $1,000
(iv) Over 499 employers $2,000
(3) Group trusts contemplated by Rev. Rul. 81-100, 1981-1 $750
C.B. 326
.07 Advisory letters on volume submitter plans.
(1) Volume submitter specimen plans $1,500
(2) Volume Submitter lead specimen plan $3,000
(3) Volume submitter specimen plan that is $100
word-for-word identical to a lead specimen plan
EXEMPT ORGANIZATIONS USER FEES
.08 $100 Letter rulings.
(1) Applications with respect to change in $150
accounting period (Form 1128)
Note: No user fee is charged if the procedure described in
Rev. Proc. 85-58, 1985-2 C.B. 740, is used by timely filing the
appropriate information return, or if the procedure described in Rev.
Proc. 76-10, 1976-1 C.B. 548, for organizations with group exemptions
is followed.
(2) Applications with respect to change in accounting $150
method (Form 3115)
Note: No user fee is charged if the method described in Rev.
Proc. 97-37, 1997-2 C.B. 455, is used. Taxpayers complying timely
with Rev. Proc. 97-37 will be deemed to have obtained the consent of
the Commissioner of Internal Revenue to change their method of
accounting.
(3) Advance approval of scholarship grant-making procedures $240
of a private foundation that has an agreement for
the administration of the scholarship program with
the National Merit Scholarship Corp., or similar
organization administering a scholarship program
shown to meet Service requirements
(4) Request for a letter ruling as to whether an $240
organization exempt from federal income tax is
required to file an annual return under § 6033
Note 1: See Rev. Proc. 95-48, 1995-2 C.B. 418, which specifies
that governmental units and affiliates of governmental units that are
exempt from federal income tax under § 501(a) are not required to
file annual information returns on Form 990, Return of
Organization Exempt from Income Tax.
Note 2: There is no additional charge for a determination of
the § 6033 filing requirement from an organization seeking
recognition of exempt status under § 501 if the organization
submits the information required by line 9 of Part I of Form 1023,
Application for Recognition of Exemption under Section 501(c)(3)
of the Code, or submits a separate written request with its
application for recognition of exemption. Only the user fee for the
initial application for recognition of exemption applies.
(5) Request for approval of a qualified subsidiary $595
related to a § 501(c)(25) organization.
(6) All other letter rulings $2,470
Reduced fees applicable to all other letter rulings:
(a) Organizations with gross receipts less than $200,000 $600
Note: An exempt organization seeking a reduced fee must
certify in the letter ruling request that its gross receipts for the
last taxable year before the request is filed were less than
$200,000.
(b) Letter ruling requests from U.S. citizens and $600
resident alien individuals, domestic trusts,
and domestic estates whose "total income" as
reported on their federal income tax return
(as amended) filed for a full (12 months)
taxable year ending before the date the
request is filed, plus any interest income
not subject to tax under § 103 (interest
on state and local bonds) for that period, is
less than $200,000
Note: The reduced fee applies to a married individual if the
combined gross income of the applicant and the applicant's spouse is
less than $200,000. The gross incomes of the applicant and the
applicant's spouse are not combined, however, if the applicant is
legally separated from his or her spouse and the spouses do not file
a joint income tax return with each other. In the case of a letter
ruling request from a domestic estate or trust that, at the time the
request is filed, has not filed an income tax return for a full
taxable year, the reduced fee will be applicable if the decedent's or
(in the case of an individual grantor) the grantor's total income as
reported on the last return filed for a full taxable year ending
before the date of death or the date of the transfer, taking into
account any additions required to be made to total income described
in this subparagraph, is less than $200,000.
(c) Letter ruling requests in which a taxpayer $200
requests substantially identical letter rulings
for multiple entities with a common member or
activity, or multiple members of a common entity,
each additional letter ruling request after the
$2,470 fee or the $600 reduced fee, as applicable,
has been paid for the first letter ruling request
.09 Determination letters and requests for group exemption
letters
(1) Initial application for exemption under § 501 or $150
§ 521 from organizations (other than pension,
profit-sharing, and stock bonus plans described in
§ 401) that have had annual gross receipts
averaging not more than $10,000 during the
preceding four years, or new organizations that
anticipate gross receipts averaging not more
than $10,000 during their first four years
Note: Organizations seeking this reduced fee must sign a
certification with their application that the receipts are or will be
not more than the indicated amounts.
(2) Initial application for exempt status from $500
organizations otherwise described in paragraph
(1) of this section 6.13 whose actual or
anticipated gross receipts exceed the $10,000
average annually
Note: If an organization that is already recognized as exempt
under § 501(c) seeks reclassification under another subparagraph
of § 501(c), a new user fee will be charged whether or not a new
application is required. An additional fee applies to organizations
that seek recognition of exemption under § 501(c)(4) (unless
requested at the time of the § 501(c)(3) application) for a
period for which they do not qualify for exemption under §
501(c)(3) because their application was filed late and they do not
qualify for relief under § 301.9100-1.
(3) Group exemption letters $500
Note: An additional fee under (1) or (2) above is required when a
central organization submits an initial application for exemption
with its request for a group exemption letter.
.10 Summary of Exempt Organization Fees
This table summarizes the various types of exempt organization
issues, indicates the office of jurisdiction for each type, and lists
the applicable user fee. Reduced fees may be applicable in certain
instances.
ISSUE OFFICE FEE
Accounting period and method changes Technical $150
Advance ruling period inquiries Determinations None
Amendments, reorganizations, name changes Determinations None
Application for recognition of exemption Determinations $500
Confirmation of exemption Determinations None
Qualified subsidiaries of section Technical $595
501(c)(25) organizations
Regulations 301.9100 relief in connection Determinations None
with applications for recognition of
exemption
Section 507 terminations
(a) Notice under section 507(b)(1) Determinations None
or (2)
(b) Advance ruling under 507(b)(1) Technical $2,470
or (2)
Section 514(b)(3) Neighborhood Land Use Technical None
Rule
Section 4940(d) exempt operating Determinations None
foundation status
Section 4942(g)(2) set-asides Determinations None
notification
Section 4943(c)(7) extensions of Technical $2,470
disposal period
Section 4945 advance approval of Determinations None
organization's grant making procedures
Section 4945(f) advance approval of Determinations None
voter registration activities
Section 6033 annual information return
filing requirements
(a) requested with original Determinations None
application
(b) requested after recognition of Technical $240
exemption
Unusual grants to certain organizations Determinations None
under sections 170(b)(1)(A)(vi) and
509(a)(2)
SECTION 7. MAILING ADDRESS FOR REQUESTING LETTER RULINGS, DETERMINATION LETTERS, ETC.
.01 Matters handled by EP or EO Technical. Requests should be mailed to the appropriate address set forth in this section 7.01.
(1) Employee plans letter rulings under Rev. Proc. 79-61, Rev. Proc. 79-62, Rev. Proc. 87-50, Rev. Proc. 90-49, Rev. Proc. 94-41, Rev. Proc. 94-42, Rev. Proc. 2000-41 or Rev. Proc. 2002-4:
Internal Revenue Service
Attention: EP Letter Rulings
P.O. Box 27063
McPherson Station
Washington, D.C. 20038
(2) Employee plans opinion letters or advisory letters under Rev. Proc. 87-50, Rev. Proc. 97-29, Rev. Proc. 98-59 and Rev. Proc. 2000-20:
Internal Revenue Service
Attention: EP Opinion/Advisory
Letter
P.O. Box 27063
McPherson Station
Washington, D.C. 20038
(3) Employee plans administrative scrutiny determinations under Rev. Proc. 93-41:
Internal Revenue Service
Attention: Administrative Scrutiny
P.O. Box 27063
McPherson Station
Washington, D.C. 20038
(4) Exempt organizations letter rulings:
Internal Revenue Service
Attention: EO Letter Rulings
P.O. Box 27720
McPherson Station
Washington, D.C. 20038
Note: Hand delivered requests must be marked RULING REQUEST SUBMISSION. The delivery should be made:
To the following address between the hours of 8:00 a.m. and 4:00 p.m., where a receipt will be given:
Courier's Desk
Internal Revenue Service
Attention: T:EP [or T:EO]
1111 Constitution Avenue, NW
Washington, D.C. 20224
.02 Matters handled by EP or EO Determinations Office. The following types of requests and applications are handled by the EP or EO Determinations Office and should be sent to the Internal Revenue Service Center in Covington, Kentucky, at the address shown below: requests for determination letters and volume submitter advisory letters on the qualified status of employee plans under §§ 401, 403(a), and 409, and the exempt status of any related trust under § 501; applications for recognition of tax exemption on Form 1023, Form 1024, and Form 1028; and other applications for recognition of qualification or exemption. The address is:
Internal Revenue Service
P.O. Box 192
Covington, KY 41012-0192
Applications shipped by Express Mail or a delivery service should be sent to:
Internal Revenue Service
201 West Rivercenter Blvd.
Attn: Extracting Stop 312
Covington, KY 41011
SECTION 8. REQUESTS INVOLVING MULTIPLE OFFICES, FEE CATEGORIES, ISSUES, TRANSACTIONS, OR ENTITIES
.01 Requests involving several offices. If a request dealing with only one transaction involves more than one of the offices within Headquarters (for example, one issue is under the jurisdiction of the Associate Chief Counsel (Income Tax & Accounting) and another issue is under the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division), only one fee applies, namely the highest fee that otherwise would apply to each of the offices involved. See Rev. Proc. 2002-1, this Bulletin, for the user fees applicable to issues under the jurisdiction of the Associate Chief Counsel (Corporate), the Associate Chief Counsel (Financial Institutions & Products), the Associate Chief Counsel (Income Tax & Accounting), the Associate Chief Counsel (Passthroughs & Special Industries), the Associate Chief Counsel (Procedure and Administration), the Associate Chief Counsel (International) or the Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities).
.02 Requests involving several fee categories. If a request dealing with only one transaction involves more than one fee category, only one fee applies, namely the highest fee that otherwise would apply to each of the categories involved.
.03 Requests involving several issues. If a request dealing with only one transaction involves several issues, or a request for a change in accounting method dealing with only one item or sub-method of accounting involves several issues, or a request for a change in accounting period dealing with only one item involves several issues, the request is treated as one request. Therefore, only one fee applies, namely the fee that applies to the particular category or subcategory involved. The addition of a new issue relating to the same transaction will not result in an additional fee, unless the issue places the transaction in a higher fee category.
.04 Requests involving several unrelated transactions. If a request involves several unrelated transactions, or a request for a change in accounting method involves several unrelated items or sub-methods of accounting, or a request for a change in accounting period involves several unrelated items, each transaction or item is treated as a separate request. As a result, a separate fee will apply for each unrelated transaction or item. An additional fee will apply if the request is changed by the addition of an unrelated transaction or item not contained in the initial submission.
.05 Requests for separate letter rulings for several entities. Each entity involved in a transaction (for example, an exempt hospital reorganization) that desires a separate letter ruling in its own name must pay a separate fee regardless of whether the transaction or transactions may be viewed as related. In certain situations, however, a reduced fee may be charged. See sections 6.01(11) and 6.08(6) of this revenue procedure.
SECTION 9. PAYMENT OF FEE
.01 Method of payment. Each request to the Service for a letter ruling, determination letter, opinion letter, etc., must be accompanied by a check or money order, payable to the United States Treasury, in the appropriate amount. Taxpayers should not send cash.
.02 Transmittal forms. Form 8717, User Fee for Employee Plan Determination Letter Request, and Form 8718, User Fee for Exempt Organization Determination Letter Request, are intended to be used as attachments to determination letter, notification letter and advisory letter applications. Space is reserved for the attachment of the applicable user fee check or money order. No similar form has been designed to be used in connection with requests for letter rulings, opinion letters, or administrative scrutiny determinations.
.03 Effect of nonpayment or payment of incorrect amount. It will be the general practice of the Service that:
(1) The respective offices within the Service that are responsible for issuing letter rulings, determination letters, etc., will exercise discretion in deciding whether to immediately return submissions that are not accompanied by a properly completed check or money order or that are accompanied by a check or money order for less than the correct amount. In those instances where the submission is not immediately returned, the requester will be contacted and given a reasonable amount of time to submit the proper fee. If the proper fee is not received within a reasonable amount of time, the entire submission will then be returned. However, the respective offices of the Service, in their discretion, may defer substantive consideration of a submission until proper payment has been received.
(2) An application for a determination letter will not be returned merely because Form 8717 or Form 8718 was not attached.
(3) The return of a submission to the requester may adversely affect substantive rights if the submission is not perfected and resubmitted to the Service within 30 days of the date of the cover letter returning the submission. Examples of this are: (a) where an application for a determination letter is submitted prior to the expiration of the remedial amendment period under § 401(b) and is returned because no user fee was attached, the submission will be timely if it is resubmitted by the expiration of the remedial amendment period or, if later, within 30 days after the application was returned; and (b) where an application for exemption under § 501(c)(3) is submitted before expiration of the period provided by § 1.508-1(a)(2) and is returned because no user fee was attached, the submission will be timely if it is resubmitted before expiration of the period provided by § 1.508-1(a)(2) or within 30 days, whichever is later.
(4) If a check or money order is for more than the correct amount, the submission will be accepted and the amount of the excess payment will be returned to the requester.
SECTION 10. REFUNDS
.01 General rule. In general, the fee will not be refunded unless the Service declines to rule on all issues for which a ruling is requested. In the case of a request for a letter ruling, if the case has been closed by the Service because essential information has not been submitted timely, the request may be reopened and treated as a new request, but the taxpayer must pay another user fee before the case can be reopened. See section 11.04(5) of Rev. Proc. 2002-4, page 127, this Bulletin.
02 Examples.
(1) The following are examples of situations in which the fee will not be refunded:
(a) The request for a letter ruling, determination letter, etc. is withdrawn at any time subsequent to its receipt by the Service, unless the only reason for withdrawal is that the Service has advised the requester that a higher user fee than was sent with the request is applicable and the requester is unwilling to pay the higher fee. For example, no fee will be refunded where the taxpayer has been advised that a proposed adverse ruling is contemplated and subsequently withdraws its submission.
(b) The request is procedurally deficient, although accompanied by the proper fee and is not timely perfected by the requester. When there is a failure to timely perfect the request, the case will be considered closed and the failure to perfect will be treated as a withdrawal for purposes of this revenue procedure.
(c) A letter ruling, determination letter, etc., is revoked in whole or in part at the initiative of the Service. The fee paid at the time the original letter ruling, determination letter, etc., was requested will not be refunded.
(d) The request contains several issues and the Service rules on some, but not all, of the issues. The highest fee applicable to the issues on which the Service rules will not be refunded.
(e) The taxpayer asserts that a letter ruling the taxpayer received covering a single issue is erroneous or not responsive (other than an issue on which the Service has declined to rule) and requests reconsideration. The Service, upon reconsideration, does not agree that the letter ruling is erroneous or is not responsive. The fee accompanying the request for reconsideration will not be refunded.
(f) The situation is the same as described in subparagraph (e) of this section 10.02(1) except that the letter ruling covered several unrelated transactions. The Service, upon reconsideration, does not agree with the taxpayer that the letter ruling is erroneous or is not responsive for all of the transactions, but does agree that it is erroneous as to one transaction. The fee accompanying the request for reconsideration will not be refunded except to the extent applicable to the transaction for which the Service agrees the letter ruling was in error.
(g) The request is for a supplemental letter ruling, determination letter, etc., concerning a change in facts (whether significant or not) relating to the transaction ruled on.
(h) The request is for reconsideration of an adverse or partially adverse letter ruling or a final adverse determination letter, and the taxpayer submits arguments and authorities not submitted before the original letter ruling or determination letter was issued.
(2) The following are examples of situations in which the fee will be refunded:
(a) In a situation to which section 10.02(l)(h) of this revenue procedure does not apply, the taxpayer asserts that a letter ruling the taxpayer received covering a single issue is erroneous or is not responsive (other than an issue on which the Service declined to rule) and requests reconsideration. The Service agrees, upon reconsideration, that the letter ruling is erroneous or is not responsive. The fee accompanying the taxpayer's request for reconsideration will be refunded.
(b) In a situation to which section 10.02(l)(h) of this revenue procedure does not apply, the requester requests a supplemental letter ruling, determination letter, etc. to correct a mistake that the Service agrees it made in the original letter ruling, determination letter, etc., such as a mistake in the statement of facts or in the citation of a Code section. Once the Service agrees that it made a mistake, the fee accompanying the request for the supplemental letter ruling, determination letter, etc., will be refunded.
(c) The taxpayer requests and is granted relief under § 7805(b) in connection with the revocation in whole or in part, of a previously issued letter ruling, determination letter, etc. The fee accompanying the request for relief will be refunded.
(d) In a situation to which section 10.02(l)(d) of this revenue procedure applied, the taxpayer requests reconsideration of the Service's decision not to rule on an issue. Once the Service agrees to rule on the issue, the fee accompanying the request for reconsideration will be refunded.
SECTION 11. REQUEST FOR RECONSIDERATION OF USER FEE
A taxpayer that believes the user fee charged by the Service for its request for a letter ruling, determination letter, etc., is either not applicable or incorrect and wishes to receive a refund of all or part of the amount paid (see section 10 of this revenue procedure) may request reconsideration and, if desired, the opportunity for an oral discussion by sending a letter to the Internal Revenue Service at the applicable Post Office Box or other address given in section 7. Both the incoming envelope and the letter requesting such reconsideration should be prominently marked "USER FEE RECONSIDERATION REQUEST." No user fee is required for these requests. The request should be marked for the attention of:
If the matter involves primarily: Mark for the attention of:
Employee plans letter ruling requests Employee Plans Technical
and all other employee plans matters
handled by EP Technical
Exempt organizations letter ruling Exempt Organizations Technical
requests
Employee plans determination letter Manager, EP Determinations
requests Quality Assurance
Exempt organizations determination Manager, EO Determinations
letter requests Quality Assurance
SECTION 12. EFFECT ON OTHER DOCUMENTS
.01 Rev. Proc. 2001-8, 2001-1 I.R.B. 239, is superseded.
SECTION 13. EFFECTIVE DATE
This revenue procedure is effective January 1, 2001.
SECTION 14. PAPERWORK REDUCTION ACT
The collections of information contained in this revenue procedure have been reviewed and approved by the Office of Management and Budget in accordance with the Paperwork Reduction Act (44 U.S.C. 3507) under control number 1545-1520.
An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid control number.
The collections of information in this revenue procedure are in sections 6.01(11)(d), 6.08(6)(b), and 6.09. This information is required to substantiate that a taxpayer or an exempt organization seeking to pay a reduced user fee with respect to a request for a letter ruling is entitled to pay the reduced fee; to identify the user fee category and corresponding fee required to be paid with respect to determination letter requests; to request reconsideration of the user fee charged by the Service and, in connection with such a request, to indicate whether an oral discussion is desired. This information will be used to enable the Service to determine whether the taxpayer or exempt organization is entitled to pay a reduced user fee, to ascertain whether reconsideration of the user fee is being requested and, if it is being requested, whether an oral discussion is requested. The collections of information are voluntary, to obtain a benefit. The likely respondents are individuals, business or other for profit institutions, nonprofit institutions, and small businesses or organizations.
The estimated total annual reporting and/or recordkeeping burden is 300 hours.
The estimated annual burden per respondent/recordkeeper varies from one hour to ten hours, depending on individual circumstances, with an estimated average of three hours. The estimated number of respondents and/or recordkeepers is 90 (requests for reduced fees) and 10 (requests for reconsideration of fee).
The estimated annual frequency of responses is on occasion.
Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally tax returns and tax return information are confidential, as required by 26 U.S.C. 6103.
DRAFTING INFORMATION
The principal author of this revenue procedure is Jeanne Royal Singley of Employee Plans, Tax Exempt and Government Entities Division. For further information regarding employee plans matters in this revenue procedure, please contact the Employee Plans' taxpayer assistance telephone service 1-877-829-5500 (a toll-free number) between the hours of 8:00 a.m. and 6:30 p.m., Eastern time, Monday through Friday. Ms. Singley may be reached at (202) 283-9888 (not a toll-free number). For exempt organization matters, please contact Mr. Wayne Hardesty at (202) 283-8976 (not a toll-free number).
APPENDIX
Following is a list of revenue procedures requiring payment of a user fee or an administrative scrutiny determination user fee.
A. Procedures applicable to both Employee Plans and Exempt Organizations
Rev. Proc. 2002-4, this Bulletin, provides procedures for issuing letter rulings, information letters, etc., on matters relating to matters under the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division.
B. Procedures Applicable to Employee Plans Matters other than Actuarial Matters
Rev. Proc. 75-26, 1975-1 C.B. 722, sets forth the general procedures of the Internal Revenue Service for the processing of applications for exemption under § 4975(c)(2) of the Code.
Rev. Proc. 87-50, 1987-2 C.B. 647, as modified by Rev. Proc. 91-44 and Rev. Proc. 92-38, sets forth the procedures of the Service relating to the issuance of rulings and opinion letters with respect to the establishment of individual retirement accounts and annuities (IRAs) under § 408, the entitlement to exemption of related trusts or custodial accounts under § 408(e), and the acceptability of the form of prototype simplified employee pension (SEP) agreements under §§ 408(k) and 415.
Rev. Proc. 92-24, 1992-1 C.B. 739, provides procedures for requesting determination letters on the effect on a plan's qualified status under § 401(a) of the Code of plan language that permits, pursuant to § 420, the transfer of assets in a defined benefit plan to a health benefits account described in § 401(h).
Rev. Proc. 92-38, 1992-1 C.B. 859, provides notice that individual retirement arrangement trusts, custodial account agreements, and annuity contracts must be amended to provide for the required distribution rules in § 408(a)(6) or (b)(3). In addition, Rev. Proc. 92-38 modifies the guidance in Rev. Proc. 87-50 with regard to opinion letters issued to sponsoring organizations, including mass submitters and sponsors of prototype IRAs.
Rev. Proc. 93-41, 1993-2 C.B. 536, sets forth the procedures of the Service relating to the issuance of an administrative scrutiny determination as to whether a separate line of business satisfies the requirement of administrative scrutiny within the meaning of § 1.414(r)-6.
Rev. Proc. 97-29, 1997-1 C.B. 698, describes model amendments for SIMPLE IRAs; guidance to drafters of prototype SIMPLE IRAs on obtaining opinion letters; permissive amendments to sponsors of nonSIMPLE IRAs; the opening of a prototype program for SIMPLE IRA Plans; and transitional relief for users of SIMPLE IRAs and SIMPLE IRA Plans that have not been approved by the Service.
Rev. Proc. 98-59, 1998-2 C.B. 727, provides guidance on obtaining opinion letters to drafters of prototype Roth IRAs, and provides transitional relief for users of Roth IRAs that have not been approved by the Internal Revenue Service.
Rev. Proc. 2000-20, 2000-6 I.R.B. 553, revises and combines the Service's master and prototype (M&P) and regional prototype programs into a unified program for the pre-approval of pension, profit- sharing and annuity plans.
Rev. Proc. 2002-6, this Bulletin, provides procedures for issuing determination letters on the qualified status of employee plans under § 401(a), 403(a), 409, and 4975(e)(7).
C. Employee Plans Actuarial Matters
Rev. Proc. 79-61, 1979-2 C.B. 575, outlines the procedure by which a plan administrator or plan sponsor may request and obtain approval for an extension of an amortization period in accordance with § 412(e) of the Code and § 304(a) of ERISA.
Rev. Proc. 79-62, 1979-2 C.B. 576, outlines the procedure by which a plan sponsor or administrator may request a determination that a plan amendment is reasonable and provides for only de minimis increases in plan liabilities in accordance with § 412(f)(2)(A) of the Code and § 304(b)(2)(A) of ERISA.
Rev. Proc. 90-49, 1990-2 C.B. 620, modifies and replaces Rev. Proc. 89-35, 1989-1 C.B. 917, in order to extend the effective date to contributions made for plan years beginning after December 31, 1989, to change the deadline for requesting rulings under the revenue procedure, to revise the information requirements for a ruling request made under the revenue procedure, to furnish a worksheet for actuarial computations, and to provide a special rule under which certain de minimis nondeductible employer contributions to a qualified defined benefit plan may be returned to the taxpayer without a formal ruling or disallowance from the Service.
Rev. Proc. 94-41, 1994-1 C.B. 711, sets forth procedures for requesting waivers of the minimum funding standard described in § 412(d) and the issuance of such waivers by the Assistant Commissioner (Employee Plans and Exempt Organizations).
Rev. Proc. 94-42, 1994-1 C.B. 717, supersedes Rev. Proc. 79-18, 1979-1 C.B. 525, and Rev. Rul. 79-215, 1979-2 C.B. 190, and sets forth a procedure for obtaining approval of an amendment to a qualified plan that, under § 412(c)(8), reduces the accrued benefits of plan participants.
Rev. Proc. 2000-41, 2000-42, I.R.B. 371, sets forth the procedure by which a plan administrator or plan sponsor may obtain approval of the Secretary of the Treasury for a change in funding method as provided by § 412(c)(5) of the Code and § 302(c)(5) of ERISA.
D. Procedures Applicable to Exempt Organizations Matters Only
Rev. Proc. 80-27, 1980-1 C.B. 677, provides procedures under which recognition of exemption from federal income tax under § 501(c) may be obtained on a group basis for subordinate organizations affiliated with and under the general supervision or control of a central organization. This procedure relieves each of the subordinates covered by a group exemption letter from filing its own application for recognition of exemption.
Rev. Proc. 90-27, 1990-1 C.B. 514, sets forth revised procedures with regard to applications for recognition of exemption from federal income tax under §§ 501 and 521.
- Institutional AuthorsInternal Revenue Service
- Code Sections
- Subject Area/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2002-923 (14 original pages)
- Tax Analysts Electronic Citation2002 TNT 9-16
