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Last Updated: January 8, 2012

-STATUTE

(a) General rule
      The Secretary shall establish a program requiring the payment of
    user fees for - 
        (1) requests to the Internal Revenue Service for ruling
      letters, opinion letters, and determination letters, and
        (2) other similar requests.
    (b) Program criteria
      (1) In general
        The fees charged under the program required by subsection (a) -
      
          (A) shall vary according to categories (or subcategories)
        established by the Secretary,
          (B) shall be determined after taking into account the average
        time for (and difficulty of) complying with requests in each
        category (and subcategory), and
          (C) shall be payable in advance.
      (2) Exemptions, etc.
        (A) In general
          The Secretary shall provide for such exemptions (and reduced
        fees) under such program as the Secretary determines to be
        appropriate.
        (B) Exemption for certain requests regarding pension plans
          The Secretary shall not require payment of user fees under
        such program for requests for determination letters with
        respect to the qualified status of a pension benefit plan
        maintained solely by 1 or more eligible employers or any trust
        which is part of the plan. The preceding sentence shall not
        apply to any request - 
            (i) made after the later of - 
              (I) the fifth plan year the pension benefit plan is in
            existence, or
              (II) the end of any remedial amendment period with
            respect to the plan beginning within the first 5 plan
            years, or

            (ii) made by the sponsor of any prototype or similar plan
          which the sponsor intends to market to participating
          employers.
        (C) Definitions and special rules
          For purposes of subparagraph (B) - 
          (i) Pension benefit plan
            The term "pension benefit plan" means a pension, profit-
          sharing, stock bonus, annuity, or employee stock ownership
          plan.
          (ii) Eligible employer
            The term "eligible employer" means an eligible employer (as
          defined in section 408(p)(2)(C)(i)(I)) which has at least 1
          employee who is not a highly compensated employee (as defined
          in section 414(q)) and is participating in the plan. The
          determination of whether an employer is an eligible employer
          under subparagraph (B) shall be made as of the date of the
          request described in such subparagraph.
          (iii) Determination of average fees charged
            For purposes of any determination of average fees charged,
          any request to which subparagraph (B) applies shall not be
          taken into account.
      (3) Average fee requirement
        The average fee charged under the program required by
      subsection (a) shall not be less than the amount determined under
      the following table:


                                                                 Average
      Category                                                       Fee
        Employee plan ruling and opinion                            $250
        Exempt organization ruling                                  $350
        Employee plan determination                                 $300
        Exempt organization determination                           $275
        Chief counsel ruling                                       $200.
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-SOURCE

(Added Pub. L. 108-89, title II, Sec. 202(a), Oct. 1, 2003, 117
    Stat. 1132; amended Pub. L. 108-357, title VIII, Sec. 891(a), Oct.
    22, 2004, 118 Stat. 1644; Pub. L. 110-28, title VIII, Sec. 8244,
    May 25, 2007, 121 Stat. 200.)

-MISC1

AMENDMENTS                            
      2007 - Subsec. (c). Pub. L. 110-28 struck out heading and text of
    subsec. (c). Text read as follows: "No fee shall be imposed under
    this section with respect to requests made after September 30,
    2014."
      2004 - Subsec. (c). Pub. L. 108-357 substituted "September 30,
    2014" for "December 31, 2004".

                     EFFECTIVE DATE OF 2004 AMENDMENT                 
      Pub. L. 108-357, title VIII, Sec. 891(b), Oct. 22, 2004, 118
    Stat. 1644, provided that: "The amendment made by this section
    [amending this section] shall apply to requests after the date of
    the enactment of this Act [Oct. 22, 2004]."

                     EFFECTIVE DATE OF 2003 AMENDMENT                 
      Pub. L. 108-89, title II, Sec. 202(d), Oct. 1, 2003, 117 Stat.
    1133, provided that: "The amendments made by this section [enacting
    this section, enacting provisions set out as a note under this
    section, and repealing provisions set out as notes under section
    7801 of this title] shall apply to requests made after the date of
    the enactment of this Act [Oct. 1, 2003]."

                                LIMITATIONS                            
      Pub. L. 108-89, title II, Sec. 202(c), Oct. 1, 2003, 117 Stat.
    1133, provided that: "Notwithstanding any other provision of law,
    any fees collected pursuant to section 7528 of the Internal Revenue
    Code of 1986, as added by subsection (a), shall not be expended by
    the Internal Revenue Service unless provided by an appropriations
    Act."