User fees are very important fees to the local government. They form the largest portion of the total percentage revenues collected by local authorities. There are different kinds of user fees depending on the purpose they are collected. There are four main user fees which are the highest of other user fees. In the Alabama state, these fees are; government entities and tax exempt user fees, chief counsel user fees, advance art determination fees and the installment agreement fees.
The government entity and tax exempt user fees are levied on organizations that exempt and Employee Plans. The fees are processed in Cincinnati Center the procedures are done every year in January. The law requires the treasury secretary of the state to determine how the fees are charged and what amount to which kind of citizens. There are also reductions and exemptions on some people. The fees are collected in accordance with the revenue procedures.
For the chief counsel user fees, the IRS gives citizens advice on internal taxation issues and the procedures involved. This guidance comes in the form of closing agreements where the IRS and the taxpayer agree on certain issues or liabilities. Letter rulings involve the tax payers receiving letters that determine the amount and methods of taxation from the IRS. Determination letters contain information from the IRS to tax payers on how the amounts of taxes are determined. Other forms of advice are oral advice and informal advice. Usually, the treasury delegate is directed by the IRS on how taxation will be conducted and when. The taxpayers can decide to pay their chief counsel fees in advance or after the secretary of the treasury has given the taxation orders.
Another user tax is the advance art fees. The tax payers can file to be given advance breakdowns of how they will be taxed. The taxpayer applies to the treasury with a given set of documents. The relevant authorities have to permit people to access these details from the IRS. The fees charged vary from individual to individual as predetermined by the treasury secretary.
Installment agreement fees are the fees charged on tax payers on their installment payments. There are different types of installments such as partial payment, direct debit, in-business trust fund express, and guaranteed and streamlined installment agreement fees. The four types of user fees vary in amount. The installment fees are the highest because they involve several installments that stretch over a specific time period. The advance art fees are the second highest, followed by the chief counsel user fee then the tax exempt fees.
The state of Alabama should use the Executive Budget Office method to prepare the budget for the next two years. This is the most appropriate method of budget preparation because of various reasons. The budget is prepared by a few individuals who have adequate economic knowledge and the needs of the state. They few individuals can easily reach a consensus on the budgeting matters. The information discussed by the EBO is open to the public under the Transparency Act. This will make the committee work effectively and the public can give their opinion on any matter about the budgeting process. This is better than other methods where the public are allowed to take part or where there are few no experts involved. Therefore, executive budget office is the most appropriate way to prepare the budget for Alabama State.