The IRS IVES User Fee Increases on March 1, 2020
February 26, 2020
The IRS announced an increase in user fees for 4506-T processing. This fee increase will only impact Service 1st clients using TRV® Services (form 4506-T processing). Effective March 1, 2020, the new fee is $5.00 per transcript year requested.
Commentary from S1
We are very disappointed and frankly surprised at the IRS’ announcement to increase the yearly surcharge an additional $3.00 for a total of $5.00 per transcript year requested. As you may know, Service 1st’s affiliate company, NCS, is the fulfillment entity for TRV Services. The IRS notified NCS on 12/23 of their intention to enact the fee on March 1, 2020.
NCS was initially notified this November, via our select participation in the IRS’ IVES Working Group, of their decision to increase transcript fees by $1.00 to a total of $3.00 per year – hence, our surprise at the 12/23 announcement. The 12/23 announced increase to $5.00 per year directly contradicts their earlier decision.
The IRS’ fee increase is an attempt to collect program development fees for an IRS API scheduled to launch in 2023. This summer, the President signed the Taxpayer First Act – an expansive effort to modernize the IRS. S1 has long advocated IRS development of an API for instant delivery of tax transcripts. The Congressionally mandated API development was included in the Act. Industry anticipated a $1.00 – 1.50 increase per transaction to cover the development – nowhere close to user fees now requested by the IRS.
Per Section 2201 of the law:
"The Act requires IRS to develop an automated system to receive third-party income verification forms. This system would replace the current system, which relies on secure fax. Also, the provision authorizes IRS to charge a separate user fee on all Income Verification Express Services (IVES) requests over a two-year period to fund the development of the new system."
NCS is advocating that the IRS raises the surcharge between $1.00 – 1.50 per transcript year to cover the API development, as initially proposed. NCS’s direct advocacy efforts are pointed towards the IRS, Treasury, and members of Congress. Advocacy efforts are directed through NCS trade associations, including the Mortgage Bankers Association (MBA) and the Consumer Data Industry Association (CDIA). Additional advocacy is presented via NCS’s leadership position in the IRS’ IVES Work Group with our industry peers.
We can assure you we’re leveraging all our industry and government relationships to bring about a successful outcome for our mutual interests. Please reach out to your S1 account representative for a quick resolution to questions or concerns related to this matter. You may also contact our general communication inbox at info@SRV1st.com.
We sincerely thank you for your business and partnership. We will keep you alerted once the IRS arrives at a final, hopefully, favorable decision.