SECTION 3. BACKGROUND

.01 Legislation authorizing user fees . Section 7528 was added to the Code by section 202 of the Temporary Assistance for Needy Families Block Grant Program, Pub. L. 108–89, 117 Stat. 1133, which was enacted October 1, 2003. This section of the Code extends the time during which user fees will be applicable through December 31, 2004. As a result, section 10511 of the Revenue Act of 1987 and section 620 of the Economic Growth and Tax Relief Reconciliation Act of 2001 were repealed. Section 7528 directs 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) are to vary according to categories or subcategories established by the Secretary; (2) are to be determined after taking into account the average time for, and difficulty of, complying with requests in each category and subcategory; and (3) are payable in advance. Section 7528(b)(3) directs the Secretary to provide for exemptions and reduced fees under the program as the Secretary determines to be appropriate, but the average fee applicable to each category may not be less than the amount specified in section 202 of the statute.

.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.