part7-15
- 7.13.2.1
Overview - 7.13.2.2
Screening and Processing - 7.13.2.3
Receipt Stamp - 7.13.2.4
Screening Determination Letter Applications - 7.13.2.5
Processing Payments for Determination, Advisory, and Opinion Letter
Applications
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Procedures are provided on processing user fees that accompany applications
for determination letters, advisory letters, and opinion letters. These procedures
establish minimum security requirements, provide instructions for processing
applications and fees, and maintain records of user fees remitted to TE/GE. -
The user fee provision was enacted into law by section 10511 of Public
Law 100–203. This law requires advance payment of a fee before determination,
ruling, opinion, or similar type letters can be issued. Public Law 100–203
was amended by section 743 of the Uruguay Round Agreement Act, Public Law
103–465, extending the legislation through September 30, 2000. Public
Law 104–117, Tax Relief to Operation Joint Endeavor Participants Act,
1996–34 extended the legislation through September 30, 2003. Section
202 of the Temporary Assistance for Needy Families Block Grant Program, Public
Law 108-89 added section 7528 to the Internal Revenue Code and was extended
to September 30, 2014 by section 891 of the American Jobs Creation Act of
2004, Public Law 108-357. See Rev. Proc. 2005–8, 2005–1 l.R.B
243, (revised annually) for administrative procedures on user fees. -
Form 8717, User Fee for Employee Plans Determination Letter Request,
serves several purposes:-
Documents payments made in determination, advisory, and opinion letter
case files; -
Helps taxpayers understand the user fee program, and
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Ascertains the correct user fee.
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User fees are payable with each determination letter, advisory letter,
and opinion letter application. See IRM 7.13.2.4.1 for user fee exceptions.
Fees are not refundable except as provided in section 10 of Rev. Proc. 2005–8,
2005–1 I.R.B. 243. Refund procedures are in IRM 7.13.2.6. -
These procedures apply to remittance processing clerks located at the
CSC, the user fee clerks and the EP technical screeners located at the EP-DCSC.
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The Treasury Financial Manual requires that funds received in discharge
of an obligation of the U.S. Government be deposited within 24 hours of receipt.
All payments in the custody of TE/GE personnel must be protected against loss,
theft, fire, destruction, and alteration. EP-DCSC currently processes all
EP applications, therefore, user fees received in the groups for determination
letter applications should be forwarded to the Cincinnati user fee clerk for
processing and user fees received in the groups for advisory and/or opinion
letter applications should be forwarded to the volume submitter/master and
prototype (VS/M&P) clerk located in the Cincinnati Federal Building for
processing. -
All applications and correspondence must be date-stamped to reflect
the date received by the Service. Correspondence received in the CSC will
indicate the postmark date and received date. -
Taxpayers are to be given every opportunity to obtain a determination
letter, advisory letter, or opinion letter once a user fee has been paid.
Any reasonable request for extension of time to perfect an application should
be granted.
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User fee processing units will be designated as “controlled
areas.”
See IRM 1.16, Physical Security Program. -
Use the following access controls in the controlled area.
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Control access to the area from other areas through the use of partitions,
screens, walls, cabinets, or other such devices. -
Post the area as a “controlled area.”
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Post a list containing names of those employees who are allowed access
without registering prominently at the entrance of the area. The unit manager
will revise the list as necessary. -
Establish a register which contains the name of the visitor, date, time
in and out, and the reason for the visit. The register must be completed by
all visitors (not listed on the access list), who have received permission
to enter the area from the area manager. -
The unit manager will collect the register on a quarterly basis for audit
trail purposes.
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Proper security over user fees must be maintained. For example, an address
or post office box may be established for the exclusive use of EP determination
letter applicants. If necessary Area security officers may assist in overseeing
the required level of security.Note:
EP determination letter applications mailed to an incorrect address should
be forwarded to the Cincinnati Service Center, P.O. Box 192, Covington, KY
41012–0192 (Attn: TE/GE Deposit Unit – Stop 31). EP advisory letter
and opinion letter applications mailed to an incorrect address should be forwarded
to the TE/GE office of the Internal Revenue Service, P.O. Box 2508, Room 5106,
Cincinnati, OH 45201, Attention VS or M&P Coordinator. -
Safeguard remittances during nonduty hours in appropriate containers.
See IRM 1.16, Physical Security Program. Coordinate with local security officers
to assure adequate security is maintained.-
Provide appropriate safeguards, i.e., a locked IRS perimeter and a locked
containers.
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When an application is received in the CSC or EP-DCSC, except as noted
in paragraph (2), date-stamp page 1 of all applications and accompanying correspondence,
as well as correspondence submitted separately from applications, to reflect
the day the submission was received by the Service. -
Do not place the stamp over information which may be relevant to reaching
a determination regarding the qualification of the plan.
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User fees received must, to the extent possible, be processed within
24 hours of receipt. -
Determination letter requests will be immediately screened for user
fee purposes. (See instruction in IRM 7.13.2.4).
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Requests for opinion or notification letters relating to the qualification
of individual retirement accounts are under the jurisdiction of the Employee
Plans Division (located in Washington D.C.). Forward these applications, with
user fee payments attached, to: Internal Revenue Service, Tax Exempt &
Government Entities, Attention T:EP:RA:T:ICU, P. O. Box 27063, McPherson Station,
Washington, DC 20038. These requests are identified as follows:-
Form 5306, Application for Approval of Prototype or Employer Sponsored
Individual Retirement Account (IRA). -
Form 5306–SEP, Application for Approval of Prototype Simplified
Employee Pension (SEP).
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Applications are initially screened by the remittance processing clerks
to determine whether:-
The application is one for which an user fee is payable. See Forms 8717,
User Fee for Employee Plan Determination Letter Request. -
A check or money order is included with the application.
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Form 8717, as appropriate, is submitted. If the Form 8717 is not present,
the remittance processing clerk at the CSC will prepare Form 8717 and attach
the payment.
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User fees are not required for the following applications:
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Form 5310–A, Notice of Plan Merger or Consolidation, Spinoff, or
Transfer of Plan Assets or Liabilities; Notice of Qualified Separate Lines
of Business. -
Applications from departments or agencies of the Federal Government that
certify that their programs or activities are funded solely by federal appropriations.
If the proper certification is not submitted, request written certification
or the appropriate user fee. (This exemption does not apply to state and local
government entities.) -
The Economic Growth and Tax Relief Act of 2001 (EGTRRA), Pub. L. 107–16,
section 620, provides that for requests made after December 31, 2001, a user
fee will not be required for certain determination letters with respect to
the qualified status of a pension, profit sharing, stock bonus, annuity, or
employee stock ownership plan. Generally, new plans maintained by employers
with 100 or fewer employees, including at least one non highly compensated
employee, may meet the exception for user fees. See Rev. Proc. 2005–8,
2005–1 I.R.B. 243 and Notice 2002–1, 2002–2 I.R.B. 283 and
Notice 2003-49, 2003-3 I.R.B. 294.Note:
Section 7528 was added to the Internal Revenue Code by section 202 of
the Temporary Assistance for Needy Families Block Grant Program, Pub. L. 108-89,
which makes permanent the sunset provisions of EGTRRA pertaining to the elimination
of user fees for certain plans.
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The sum of money must be expressed in numbers and in writing.
Note:
If the numeric amount does not agree with the written amount,
or the written amount is absent, the check is incomplete and must be guaranteed. -
Checks and money orders should be payable to,
or to the order of: United States Treasury. (See Section
9.01 of Rev. Proc. 2005–8, 2005-1 I.R.B. 2.-
Checks and money orders made payable to Internal Revenue Service may be
accepted.
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If the payee line is blank
