USER FEES SLASHED! IRS LOWERS PRICES ON RULING REQUESTS; SAVINGS OF UP TO 90 PERCENT.

Rev. Proc. 92-90

SECTION 1. PURPOSE

This revenue procedure makes certain changes in the user fee program of the Internal Revenue Service that was established pursuant to section 10511 of the Revenue Act of 1987 (1987 Act), Pub. L. 100- 203, enacted December 22, 1987, as amended by section 11319 of the Omnibus Reconciliation Act of 1990, Pub. L. 101-508, enacted November 5, 1990. This revenue procedure changes the user fee schedule for ruling requests within the jurisdiction of the Chief Counsel in the following situations: (1) a taxpayer requests substantially identical rulings with respect to multiple entities with a common member or sponsor, (2) a taxpayer requests substantially identical rulings with respect to multiple members of a common entity, (3) a parent corporation requests the identical accounting method change on a single Form 3115 (Application for Change in Accounting Method) on behalf of more than one member of a consolidated group (see section 4.03), or (4) a parent corporation in situation (3) requests an extension of time to file Form 3115 under section 301.9100-1 of the Procedure and Administration Regulations. Section 6.03(1) of Rev. Proc. 90-17, 1990-1 C.B. 479, section 8.01(11) of Rev. Proc. 92-1, 1992-1 I.R.B. 9, and section 6.09 of Rev. Proc. 92-7, 1992-1 I.R.B. 135, are amplified, and section 10.08 of Rev. Proc. 92-20, 1992-1 C.B. 685, is modified to reflect these changes. This revenue procedure also requires the filing of additional information under Rev. Proc. 92-1.

SEC. 2. BACKGROUND

01 Section 10511 of the 1987 Act provides that the Secretary of the Treasury or his delegate (Secretary) shall establish a program requiring the payment of user fees for requests to the Service for rulings, opinion letters, determination letters, and similar requests. The fees charged under the program are to vary according to categories or subcategories established by the Secretary and are to be determined after taking into account the average time for, and difficulty of, complying with requests in each category and subcategory. The Secretary is to provide for exemptions and reduced fees under the program as the Secretary determines to be appropriate.

02 Rev. Proc. 90-17 contains the current schedule of fees and provides guidance for administering the user fee requirements for requests within the jurisdiction of the Associate Chief Counsel (Domestic) and the Associate Chief Counsel (International). Section 2 of Rev. Proc. 90-17 provides that user fees should bear a direct relationship to the cost of providing the ruling.

03 Rev. Proc. 92-1 provides procedures for issuing rulings, determination letters, and information letters on specific issues under the jurisdiction of the Associate Chief Counsel (Domestic) and the Associate Chief Counsel (Employee Benefits and Exempt Organizations).

04 Rev. Proc. 92-7 provides procedures for issuing rulings, determination letters, and information letters on specific issues under the jurisdiction of the Associate Chief Counsel (International).

05 Section 6.03(1) of Rev. Proc. 90-17, section 8.01(11) of Rev. Proc. 92-1, and section 6.09 of Rev. Proc. 92-7, set forth the amount of the user fee payable with respect to each category or subcategory within the jurisdiction of the Chief Counsel. Section 6.09 of Rev. Proc. 92-7 provides that the user fee for issues under the jurisdiction of the Associate Chief Counsel (International) is generally $2,500. Section 6.03(1)(a) of Rev. Proc. 90-17 and section 8.01(11) of Rev. Proc. 92-1 provide user fees for requests relating to accounting periods and changes in accounting methods. These sections specifically provide that the user fee is $500 for a Form 3115 or a request for an extension of time to file Form 3115 under section 301.9100-1 of the regulations. Section 6.03(1)(a) of Rev. Proc. 90-17 and section 8.01(11) of Rev. Proc. 92-1 further provide that the user fee applicable to all other rulings (including accounting period, accounting method, and earnings and profits requests other than those submitted on Forms 1128, 2553, 3115, and 5452) is generally $2,500. The user fee is due when the request is submitted.

06 Section 10.08 of Rev. Proc. 92-20 states that a separate Form 3115 and a user fee must be submitted for each member of a consolidated group for which a change in accounting method is being requested.

07 The Service has recently analyzed the current user fee schedule and has determined that it is appropriate to reduce the user fee in the following situations.

(1) The user fee for all rulings (including accounting period, accounting method, and earnings and profits requests other than those submitted on Forms 1128, 2553, 3115, and 5452) is reduced for situations in which a taxpayer requests substantially identical rulings with respect to (a) multiple entities with a common member or sponsor, or (b) multiple members of a common entity.

(2) The user fee is also reduced for situations in which a parent corporation requests (a) the identical accounting method change on a single Form 3115 on behalf of more than one member of a consolidated group, or (b) an extension of time to file Form 3115 under section 301.9100-1 of the regulations for the identical accounting method change on behalf of more than one member of a consolidated group.

SEC. 3. REDUCED FEE

01 For ruling requests filed under section 2.07(1) of this revenue procedure, the user fee will be $2,500 for the first letter ruling, plus $250 for each additional letter ruling.

02 For ruling requests filed under section 2.07(2) of this revenue procedure, the user fee will be $500 for the first member of a consolidated group, plus $50 for each additional member of the group seeking the identical accounting method change on the same application.

SEC. 4. SCOPE

01 This revenue procedure applies to all ruling requests within the jurisdiction of the Chief Counsel.

02 To qualify for the reduced user fee in section 2.07(1) of this revenue procedure, all information and underlying documents must be substantially identical and all requests must be submitted at the same time.

03 To qualify for the reduced user fee in section 2.07(2) of this revenue procedure, the taxpayers in the consolidated group must be (1) members of the same affiliated group under section 1504(a) of the Internal Revenue Code that join in the filing of a consolidated tax return, and (2) requesting to change from the identical present method of accounting to the identical proposed method of accounting. All aspects of the requested accounting method change, including the present and proposed methods, the underlying facts and the authority for the request, must be identical, except for the section 481(a) adjustment for the year of change and the first preceding year, and the number of years the present method has been used.

SEC. 5. PROCEDURE

01 For ruling requests under section 2.07(1) of this revenue procedure, in addition to all information required by Rev. Proc. 92- 1, a taxpayer must attach a statement under penalties of perjury attesting to the fact that the ruling requests with respect to (1) multiple entities with a common member or sponsor, or (2) multiple members of a common entity, are substantially identical and that all information and underlying documents are substantially identical. Taxpayers must also specifically identify the extent to which ruling requests, information, and underlying documents are not identical.

02 For ruling requests under section 2.07(2) of this revenue procedure, a parent corporation must file a single Form 3115. In addition to including all the information required on the Form 3115, the parent corporation must, for each member of a consolidated group for which the change is being requested, attach to the Form 3115 a schedule providing its name, employer identification number, section 481(a) adjustment for the year of change and the first preceding year, and the number of years the method has been used. The Form 3115 submitted on behalf of the members of a consolidated group must be signed by a duly authorized officer of the parent corporation.

03 If the request under section 2.07(2) of this revenue procedure is for an extension of time to file Form 3115 under section 301.9100-1 of the regulations, a parent corporation must submit the information required by Rev. Proc. 92-85, 1992-42 I.R.B. 32, in addition to the information required by section 5.02 of this revenue procedure.

04 In order to assist in the processing of reduced user fee requests, all ruling requests submitted under this revenue procedure must (1) make reference to this revenue procedure by typing in the upper right-hand corner of the first page of the ruling request "REQUEST FOR REDUCED USER FEE UNDER REV. PROC. 92-90," (2) list on the first page of the submission all taxpayers and entities requesting a ruling, and (3) submit one check to cover all user fees.

05 If the Service determines that ruling requests do not qualify for a reduced fee as provided in section 4.02 or section 4.03, the Service will request an additional user fee.

SEC. 6. LETTER RULING

01 For requests filed under section 2.07(1) of this revenue procedure, a separate letter ruling will be issued for each entity with a common member or sponsor, or for each member of a common entity.

02 For requests filed under section 2.07(2) of this revenue procedure, generally only a single letter ruling will be issued on behalf of all members of a consolidated group that file a Form 3115 or request an extension of time to file Form 3115 under section 301.9100-1 of the regulations. If, however, different spread periods for the section 481(a) adjustment or different terms and conditions are required, the Service may issue separate letter rulings for certain members or groups of members within a consolidated group. Each letter ruling will include an attachment listing the section 481(a) adjustment for each member to which the letter ruling applies.

SEC. 7. EFFECT ON OTHER DOCUMENTS

01 Rev. Proc. 90-17, Rev. Proc. 92-1, and Rev. Proc. 92-7 are amplified. Section 6.03(1) of Rev. Proc. 90-17 and section 8.01(11) of Rev. Proc. 92-1 are revised to provide for the new subcategory of reduced user fees set forth in section 3 of this revenue procedure.

02 Rev. Proc. 92-20 is modified. The last paragraph of section 10.08 of Rev. Proc. 92-20 is deleted and the following paragraph is substituted:

Except if the parent corporation of a consolidated group is requesting a reduced user fee under Rev. Proc. 92-90, 1992-46 I.R.B. ___, a separate Form 3115 and user fee must be submitted for each member of a consolidated group for which a change in accounting method is requested.

SEC. 8. EFFECTIVE DATE

This revenue procedure is effective for ruling requests received on or after November 16, 1992, and for all requests pending with the National Office on November 16, 1992 that would benefit from the application of this revenue procedure.

DRAFTING INFORMATION

The principal authors of this revenue procedure are Mary A. Berman of the Office of the Assistant Chief Counsel (Passthroughs and Special Industries) and Kimberly L. Koch of the Office of the Assistant Chief Counsel (Income Tax and Accounting). For further information regarding requests under section 2.07(1) of this revenue procedure contact Mrs. Berman on (202) 622-3050 (not a toll-free call). For further information regarding requests under section 2.07(2) of this revenue procedure contact Ms. Koch on (202) 622-4980 (not a toll-free call).