SECTION 10. USER FEE

.01 Taxpayers subject to fees . Taxpayers are subject to a user fee only if they are selected to participate in the LMSB PFA program. Taxpayers not selected to participate in the LMSB PFA program are not subject to user fees.

.02 Amount of fee . The user fees for taxpayers selected to participate in the LMSB PFA program are:

(1) $10,000 for taxpayers having $250,000,000 or more in assets;

(2) $5,000 for taxpayers having at least $50,000,000, but less than $250,000,000 in assets; and

(3) $1,000 for taxpayers having at least $5,000,000, but less than $50,000,000 in assets. For purposes of determining the appropriate user fee, the amount of assets held by the taxpayer will be determined by its most recently filed return.

.03 Time and method of payment . Taxpayers subject to user fees must submit payment within 30 business days of receiving notification that they have been selected to participate in the LMSB PFA program. Payment must be made by a check or money order payable to the Internal Revenue Service.

.04 Withdrawal . Notwithstanding the withdrawal by either the taxpayer or the Service of any or all of the issues in the request for an LMSB PFA, the user fee paid by the taxpayer generally will not be

requirements under section 12 will be used for tax administration. The collections of information under sections 4 and 6 are voluntary. Once an LMSB PFA is entered into, the record keeping requirements under section 12 are mandatory. The likely respondents are businesses or other for-profit institutions.

The estimated total annual reporting and/or record keeping burden is 10,200 hours.

The estimated annual burden per respondent/recordkeeper varies from 5 hours to 126 hours, depending on whether a taxpayer applying to the LMSB PFA program is accepted into the program. The estimated annual burden for taxpayers who apply to the LMSB PFA program and

are accepted is 126 hours. The estimated annual burden for taxpayers who apply to the LMSB PFA program and are not accepted is 5 hours. The estimated number of taxpayers who apply to the LMSB PFA program and are accepted is 75. The estimated number of taxpayers who apply to the LMSB PFA program and are not accepted is 150. The estimated total number of respondents and/or recordkeepers is 225. The estimated annual frequency of responses is on occasion.

Books or records relating to a collection of information must be retained so 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.