New IRS User Fees for 5307 Filings Effective After 2/1 or 7/1?

[Guest EMM118]

The official IRS website indicates that the new user fees take effect in two phases ... one in February, 2006 and the second in July, 2006. It would appear from this site that the $125 VS user fee for 5307 applications is July 1, 2006.

However, a representative on the IRS Hotline indicates that the new fees are effective for filings made on or after 2/1/06. She indicated that while the IRS website was confusing, they are processing applications under the impression that the new user fees are in effect. The Appendix to the appropriate Rev. Proc. is not all that clear. On the fourth page of the Appendix, it indicates that some fees are effective on July 1st.

Most posters here believe that the new user fees applicable to determination letter applications are effective February 1.

Any thoughts? Thanks. Ed

[Guest rhp]

The official IRS website indicates that the new user fees take effect in two phases ... one in February, 2006 and the second in July, 2006. It would appear from this site that the $125 VS user fee for 5307 applications is July 1, 2006.

However, a representative on the IRS Hotline indicates that the new fees are effective for filings made on or after 2/1/06. She indicated that while the IRS website was confusing, they are processing applications under the impression that the new user fees are in effect. The Appendix to the appropriate Rev. Proc. is not all that clear. On the fourth page of the Appendix, it indicates that some fees are effective on July 1st.

Most posters here believe that the new user fees applicable to determination letter applications are effective February 1.

Any thoughts? Thanks. Ed

We read sections 6.05-6.07 of the Rev. Proc. to say that the new fees for determination letters are effective for applications postmarked after 7/1/06. Also, form 8717 does not appear to have been updated yet for this.

[Bird]

user fee appendix

It seems clear to me that it's 7/1 for individual DLs. Page 4 has headers for "pre-7/1" and "on or after 7/1" and the individual DL listings are on pages 5 and 6; I understood those headers to apply to everything following so I thought that they (new DL fees) were effective 7/1. If the chart should be read otherwise, then I agree it is confusing.

[davef]

The new user fees for determination letters are effective 7/1/06. The IRS even says so at their website:

http://www.irs.gov/charities/article/0,,id=151893,00.html

[Guest EMM118]

I understand what the IRS website says. However, IRS officials processing applications have been distributed memos indicating that the new user fee applies to application filed on or after 2/1/06. They indicated that they had done an internal investigation and concluded that the new user fees applied to applications filed on or after 2/1/06. IRS letters for 5307 filings have come back showing the $300 fee.

Need to be careful on this one. If we pay too much, the IRS will refund the excess amount in the future. If we don't pay the increased user fee, the client sees that the determination letter application is kicked back.

Thanks. Ed

[Bird]

IRS letters for 5307 filings have come back showing the $300 fee.

What exactly does this mean?

[Guest rhp]

The just issued Employee Plans News--Volume 6/Spring 2006 states on page 4 that user fees for determ letters will increase for applications postmarked on or after July 1.