The IRS today issued a release announcing that taxpayers requesting letter rulings, closing agreements, and certain other rulings will need to make user fee payments electronically using the federal government’s Pay.gov system beginning August 16, 2017. Checks will no longer be accepted.
This new requirement mandating electronic payment of user fees is being phased in beginning June 15, 2017, and ending August 15, 2017.
As explained in today’s IRS release—IR-2017-102 (June 1, 2017)—taxpayers and others requesting rulings from the IRS historically could only make the required user fee payments by check or money order. During a two-month transition period, June 15 to August 15, those requesting rulings can choose to make user fee payments either electronically through Pay.gov or by check or money order. After August 15, 2017, Pay.gov will become the only permissible payment method. Fees may be paid at Pay.gov using credit and debit cards or via direct debit or electronic funds transfer from a checking or savings account.
The IRS release identifies the rulings subject to the electronic payment requirement as those described in Rev. Proc. 2017-1 and sent to the Docket, Records and User Fee Branch of the Legal Processing Division of the Associate Chief Counsel (Procedure and Administration). These include private letter rulings, closing agreements, and rulings using Form 1128, 2553, 3115 or 8716.
Determination letters are not affected because they are sent to other offices (described in Rev. Proc. 2017-1).
While Pay.gov will be used to accept payments only, the IRS explained that the original, signed ruling request and supporting materials must still be submitted by mail or hand delivery to the IRS.
The IRS release directs taxpayers that, to submit a user fee, they need to go to www.pay.gov and select the form for the IRS Chief Counsel User Fees (or Supplemental User Fees) for Form 1128, Form 2553, Form 3115, Form 8716, Private Letter Rulings and Closing Agreements. This form can be found by entering “IRS Chief Counsel User Fees” in the “Search the Forms” box or by clicking on the “Agency List” link under “What Federal Agencies Can I Pay?” and choosing IRS.
Once payment is made, taxpayers are directed to print a copy of the completed form and the payment receipt and file with the original, signed letter ruling request to the address set forth in Rev. Proc. 2017-1.
The IRS also notes that “for the fastest processing,” e-fax a copy of the Pay.gov receipt, the completed form and the ruling request to an e-fax line, 877-773-4950. Thereafter, the original, signed ruling request and supporting materials must still be submitted by mail or hand delivery to the IRS.
© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.