A PLR is a Private Letter Ruling from the IRS. Basically, it is a written request a taxpayer submits to obtain some sort of exception to a tax rule from the IRS.
For IRA related PLRs, the fees have dramatically increased over the past year.
As of 2016, the basic IRS user fee for 60-day rollovers and recharacterizations is $10,000. There are no available reductions for this fee.
The standard fee of $10,000 increased to $28,300 for other IRA related matters. However, many may qualify for a reduction (reduced to $2,200 or $6,500) as the full $28,300 fee applies to those with income of $1 million or more.
An IRS user fee is in addition to any professional fees required to prepare a PLR request which can run an extra $5,000 to $10,000.
Remember, a PLR is not law and it may not be relied upon as a source of authority or legal precedent by anyone other than the person who requested the PLR.
Source: Rev. Proc. 2016–8