PLR (PRIVATE LETTER RULING) FEES GOING UP

L1: PLR (PRIVATE LETTER RULING) FEES GOING UPEffective 2/1/2006, the IRS will be increasing the fees charged for Private Letter Rulings (PLRs).Taxpayers earning less than $ 250,000 will pay $ 625 (which is probably most of the people using this website). Taxpayers earning $ 250,000 to $ 1 million will pay $ 2,500. Those earning over $ 1 million will pay $ 10,000 (increased from $ 7,500).2005-12-21 20:47, By: dlztaxes, IP: [4.175.9.192]
L2: PLR (PRIVATE LETTER RULING) FEES GOING UPMr. DLZ,
Thanks for the info on the costsof PLR’s.
Up to now, my impression was that doing a PLR was a huge thing, costing thousands, takes a year, etc.
I’m thinking that in addition to the $625 the thousands implies that one would be advised to have a tax lawyer draw up the PLR?
Also, the time factor- has it been exaggerated, do they take a very long time to reply/rule regardless, or is it just that most PLR’s are probably tricky, involved scenarios, etc. and maybe a short, simple one (like, I made a mistake in my withdrawal, will you allow me to fix it without busting the SEPP) may take a shorter time to get a result?
Rick2005-12-22 15:42, By: Rick S., IP: [69.231.240.228]

L2: PLR (PRIVATE LETTER RULING) FEES GOING UPFortunately I’ve never needed a Private Letter Ruling (PLR). So I don’t know for sure, but I suspect that there are certain (stupid) procedural requirements that suggest it is prudent to use a tax attorney, CPA, or enrolled agent who is experienced in this area.
While your “time” points are reasonable, I suspect that it probably takes 6 months to get thru the red tape, backlog, training, vacations, holidays, sick days, and other non-working days of IRS personnel.2005-12-22 22:40, By: dlztaxes, IP: [4.175.9.249]

L2: PLR (PRIVATE LETTER RULING) FEES GOING UPI just took a look at these new fees & it gets worse. The Tax Exempt & Governmental Entities (TE/GE) division of the Assistant General Counsel’s office (the deivision that deals with IRC 72 private letter ruling requests) has always marched to a different drummer & has always published there own fee schedule which was different from the other AGC divisions. Ready for a sharp stick in the eye—–
Before 2/1/06:
Gross income under $250k — ther reduceduser feeof $625 still applies.
Over $250k — $2,570
After 1/31/06:
All rulings irrespective of gross income —- $9,000.
Looks like they (the IRS) wants to shut off the pipeline.
TheBadger
2005-12-29 08:34, By: TheBadger, IP: [66.250.23.25]

L2: PLR (PRIVATE LETTER RULING) FEES GOING UPWow, $9,000.00! That is astonishing. If the general public knew of this jump frome $625 (for essentially most of us) to $9000, there whould be a big whoopla.Thisis just outrageous. Unfortunately, most of the general public doesn’t know and doesn’t care, althouth they ought to- the PLR is a very important option/tool for the public to have available for solving unusual problems.
What a shame.
Shouldn’t we be emailing news outlets with this info, just to get some light shed on it, anyway?
Rick2005-12-31 23:57, By: Rick S., IP: [69.231.243.198]