IRS Modifies VCP Fees for 2018
The IRS’ first Revenue Procedure of 2018, Rev. Proc. 2018-01, provides the usual — an explanation of how it provides advice to taxpayers on a variety of issues — but it also contains something else. The IRS also reports that for 2018, it has modified the fees for voluntary correction program (VCP) filings, as well as other user fees.
Changes to Fees for VCP Submissions
The IRS modified the user fee structure for VCP submissions so they are now as follows:
- $1,500 for plans with assets of $500,000 or less;
- $3,000 for plans with assets of over $500,000 to $10,000,000; and
- $3,500 for plans with assets of over $10,000,000.
The IRS made no changes to the user fee for group submissions, nor to the special fee waiver for terminating orphan plans.
Increases in Other Fees
The IRS also has increased the user fees for the following types of submissions:
- for opinion letters on prototype individual retirement accounts and/or annuities, SEPs, SIMPLE IRAs, SIMPLE IRA Plans, Roth IRAs and dual-purpose IRAs, the IRS raised the user fee from $1,000 to $2,500; and
- for Form 5310 (Application for Determination for Terminating Plan), the IRS raised the user fee from $2,300 to $3,000.