SECTION 6. FEE SCHEDULE — Internal Revenue Bulletin 1999-1

The amount of the user fee, compliance fee or correction 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 $80 (2) Change in plan year (Form 5308) $120

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 $450 (4) Approval to become a nonbank trustee (see § 1.408–2(e) of the Income Tax Regulations) $3,000

January 4, 1999 232 1999–1 I.R.B.

(5) Waiver of minimum funding standard, under § 412(d):

(a) Waiver of $1,000,000 or more $4,425 (b) Waiver of less than $1,000,000 $1,900 (6) Waiver of the excise tax, under § 4971(f), on failure to pay a liquidity shortfall:

(a) Waiver of $1,000,000 or more $4,425 (b) Waiver of less than $1,000,000 $1,900 (7) Letter ruling under Rev. Proc. 90–49, 1990–2 C.B. 620 $275 (8) Letter ruling involving the determination of the account limit under § 419A(c) $2,100 (9) Individually designed simplified employee pension (SEP) $2,100 (10) All other letter rulings $2,100

Reduced fees, or augmented fee, applicable to all other letter rulings:

(a) Letter ruling requests by or on behalf of eligible retirement plans (within the meaning of § 402(c)(8)(B))

with assets of less than $150,000 $600 (b) Letter ruling requests from U.S. citizens and 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 $150,000 $600

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 $150,000. 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 $150,000.

Organizations” with gross receipts of less than $150,000 $600

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 $150,000.

(d) In situations in which a taxpayer requests 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 $2,100 fee or the $600 reduced fee, as applicable, has been paid for the first letter ruling request $200

(e) In situations in which a taxpayer requests a 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 $2,100 fee or $600 reduced fee, as applicable, has been paid for the first entity $200

.02 Requests for certain administrative exemptions. Requests for administrative exemptions for participant-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 $2,100

Note: The provisions of Rev. Proc. 75–26, 1975– 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 determination is requested $4,000 (2) For each additional separate line of business for which a determination is requested $1,300 .04 Opinion letters and advisory letters on master and prototype plans.

(1) Mass submitter M & P plan, per basic plan document, new or amended, with one adoption agreement $3,000 (2) Mass submitter M & P plan, per each additional adoption agreement $400

1999–1 I.R.B. 233 January 4, 1999

(3) Sponsoring organization’s word-for-word identical adoption of M & P mass submitter’s basic plan document (or an amendment thereof), per adoption agreement $100

Note 1: Mass submitters that are sponsoring organizations 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) Sponsoring organization’s minor modification of M & P mass submitter’s plan document, per adoption agreement $225 (5) Nonmass submission (new or amended) by M & P sponsoring organization, per adoption agreement $1,800 (6) M & P mass submitter’s request for an advisory letter with respect to the addition of optional provisions following issuance of a favorable opinion letter (see section 18.031(c) of Rev. Proc. 89–9), per basic plan document (regardless of the number of adoption agreements) $480 (7) M & P mass submitter’s addition of new adoption agreements after the basic plan document and associated adoption agreements have been approved, per adoption agreement $400 (8) Assumption of sponsorship of an approved M & P plan, without any amendment to the plan document, by a new entity, as evidenced by a change of employer identification number $240

.05 Notification letters issued by the National Office on mass submitter regional prototype plans.

(1) Mass submitter regional prototype plan, per basic plan document, new or amended, with one adoption agreement $3,000 (2) Mass submitter regional prototype plan, per each additional adoption agreement $400

Note: Separate notification letters are required for sponsors utilizing mass submitter regional prototype plans. Such notification letters are issued by the Ohio Key District Office. The applicable user fee is set forth in section 6.09(1) of this revenue procedure.

(3) Regional prototype plan mass submitter’s addition of new adoption agreements after the basic plan document and associated adoption agreements have been approved, per adoption agreement $400

.06 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, SIMPLE IRA, SIMPLE IRA Plan, or Roth IRA, per plan document, new or amended $1,050 (2) Sponsoring organization’s word-for-word identical adoption of mass submitter’s prototype IRA, SEP, SIMPLE IRA, SIMPLE IRA Plan, or Roth IRA, per plan document or an amendment thereof $100

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 12month period.

(3) Sponsoring organization’s minor modification of mass submitter’s prototype IRA, SEP, SIMPLE IRA, SIMPLE IRA Plan, or Roth IRA, per plan document $275 (4) Sponsoring organization’s nonmass submission of prototype IRA, SEP, SIMPLE IRA, SIMPLE IRA Plan, or Roth IRA, per plan document $400 (5) Opinion letters on dual-purpose (combined traditional and Roth) IRAs:

(a) Mass submission of a prototype dual-purpose IRA, per plan document, new or amended $2,100 (b) Sponsoring organization’s word-for-word identical adoption of mass submitter’s prototype dual-purpose IRA, per plan document or an amendment thereof $100

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.

January 4, 1999 234 1999–1 I.R.B.

(c) Sponsoring organization’s minor modification of mass submitter’s prototype dual-purpose IRA, per plan document $550 (d) Sponsoring organization’s non mass submission of prototype dual-purpose IRA, per plan document $800

.07 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 5303 $700 (c) Form 5310 $225 (d) Form 5307 $125 (e) Form 6406 $125 (f) Multiple employer plan:

(i) 2 to 10 employers $700 (ii) 11 to 99 employers $1,400 (iii) 100 to 499 employers $2,800 (iv) Over 499 employers $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.

(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 or Form 5303 $1,250 (b) Form 5307 $1,000 (c) Form 5310 $375 (d) Multiple employer plan:

(i) 2 to 10 employers $1,250 (ii) 11 to 99 employers $2,000 (iii) 100 to 499 employers $3,500 (iv) Over 499 employers $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.

(3) Group trusts contemplated by Rev. Rul. 81-100, 1981-1 C.B. 326 $750

.08 Advisory letters on volume submitter plans.

Volume submitter specimen plans $1,500

.09 Notification letters issued by the Ohio Key District Office with respect to regional prototype plans.

(1) Sponsor’s identical adoption of mass submitter’s regional prototype plan basic plan document, per adoption agreement (Form 4461-B) $100

Note: Mass submitters that are sponsors in their own right are liable for this fee.

(2) Sponsor’s nonmass submission of regional prototype plan, per adoption agreement (Form 4461 or 4461-A) $1,500

COMPLIANCE FEES AND CORRECTION FEES

.10 Compliance statements under the Voluntary Compliance Resolution (VCR) program.

1999–1 I.R.B. 235 January 4, 1999

(1) Request for a compliance statement under the VCR program:

(a) For a plan with assets of less than $500,000, and no more than 1,000 plan participants $500 (b) For a plan with assets of at least $500,000, and no more than 1,000 plan participants $1,250 (c) For a plan with more than 1,000 plan participants but less than 10,000 plan participants $5,000 (d) For a plan with 10,000 or more plan participants $10,000

Note: In establishing the amount of plan assets and the number of plan participants, the plan sponsor will use the numbers from the most recently filed Form 5500 series.

(2) Request for a compliance statement under the Standardized VCR Program (SVP) $350

.11 Correction statements under the Tax-Sheltered Annuity Voluntary Correction (TVC) program.

(1) Request for a correction statement under the TVC program:

(a) For an employer with fewer than 25 employees $500 (b) For an employer with at least 25 and no more than 1,000 employees $1,250 (c) For an employer with more than 1,000 employees but less than 10,000 employees $5,000 (d) For an employer with 10,000 or more employees $10,000

EXEMPT ORGANIZATIONS USER FEES

.12 Letter rulings.

(1) Applications with respect to change in accounting period (Form 1128) $130

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 method (Form 3115) $130

Note: No user fee is charged if the method described in Rev. Proc. 97–37, 1997–33 I.R.B. 18, 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 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 $200 (4) Request for a letter ruling as to whether an organization exempt from federal income tax is required to file an annual return under § 6033 $200

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 related to a § 501(c)(25) organization. $500 (6) All other letter rulings $2,100

Reduced fees applicable to all other letter rulings:

(a) Organizations with gross receipts less than $150,000 $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 $150,000.

January 4, 1999 236 1999–1 I.R.B.

(b) Letter ruling requests from U.S. citizens and 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 $150,000 $600

(c) Letter ruling requests in which a taxpayer 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 $2,100 fee or the $600 reduced fee, as applicable, has been paid for the first letter ruling request $200

.13 Determination letters and requests for group exemption letters.

(1) Initial application for exemption under § 501 or § 521 from organizations (other than pension, profitsharing, 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 $150

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 organizations otherwise described in paragraph (1) of this section 6.13 whose actual or anticipated gross receipts exceed the $10,000 average annually $500

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

.14 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 LOCATION FEE

Accounting period and method changes Nat. Office $130 Advance approval after recognition of exemption Ohio KDO none Advance ruling period inquiries Ohio KDO none Amendments, reorganizations, name changes Ohio KDO none Application for recognition of exemption Ohio KDO $500 Confirmation of exemption Ohio KDO none Qualified subsidiaries of section 501 (c)(25) organizations Nat. Office $500 Regulation 301.9100 relief in connection with applications for recognition of exemption Ohio KDO none Section 507 terminations

(a) Notice under section 507(b)(1) or (2) Ohio KDO none (b) Advance ruling under 507(b)(1) or (2) Nat. Office $2100 Section 514(b)(3) Neighborhood Land Use Rule Nat. Office none Section 4940(d) exempt operating foundation status Ohio KDO none

1999–1 I.R.B. 237 January 4, 1999

ISSUE LOCATION FEE

Section 4942(g)(2) set-asides notification Nat. Office none Section 4943(c)(7) extensions of disposal period Nat. Office $2100 Section 4945 advance approval of organization’s grant making procedures with applications for recognition of exemption Ohio KDO none Section 4945(f) advance approval of voter registration activities Ohio KDO none Section 6033 annual information return filing requirements

(a) requested with original application Ohio KDO none (b) requested after recognition of exemption Nat. Office $200 Unusual grants to certain organizations under sections 170(b)(1)(A)(vi) and 509(a)(2) Ohio KDO none

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