The American Institute of CPAs issued a letter last week in which they propositioned to the IRS and the Treasury that the IRS establish a unique user fee category for “private letter ruling requests” for S corporations as it would lower fees for such requests.

In its May 19 letter, Troy Lewis, CPA, CGMA, chair of the AICPA Tax Executive Committee, wrote, “The AICPA proposes that the Service establish a separate user fee category for private letter rulings under sections 1362(b)(5) and 1362(f) because these rulings should require significantly less time by IRS personnel than most other ruling requests for which a current user fee of $28,300 is generally charged.  We believe that a reduced user fee for ruling letters in these categories will remove a significant disincentive for affected taxpayers to remedy the effects of a late election or inadvertent ineffective election or termination of S corporation or qualified subchapter S subsidiary status.”  Lewis noted that the private letter rulings by S corporations are not optional because they are required to obtain or maintain their S corporation status.

View the full press release here: AICPA Proposes Reduced User Fee for S Corporation Private Letter Ruling Requests

Posted by Allison Trupp, Associate Editor, Wealth Strategies Journal