The Internal Revenue Service recently issued a retroactive reduction in the User Fee applicable to filing Form 5310, Application for Determination for Terminating Plan. The fee is now $2,300, which is a $700 reduction of the $3,000 fee originally announced in Revenue Procedure 2018-4. This guidance contained in Revenue Procedure 2018-19, modifying Revenue Procedure 2018-4, is effective retroactively to January 2, 2018.
Recall, last January, the IRS sunset the five-year remedial amendment cycles for individually-designed plan sponsors seeking determination letters from the IRS indicating that their plans were in documentary compliance with applicable law. However, the IRS continues to accept determination letter applications for individually-designed retirement plans in limited circumstances, including upon termination.
The good news is that plan sponsors who have already filed Form 5310 in 2018 will receive a refund of $700, the difference between the original fee of $3,000 and the new fee of $2,300.