IRS User Fees Increase for Installment Agreements

The Internal Revenue Service (IRS) on Monday announced the first increases in user fees for installment agreements. The increased fees will also apply to installment agreements made using the Online Payment Agreement application on the IRS web site.


Advertisement


Sarbanes-Oxley and State Income Taxes:
Meeting the compliance standards
without crippling your tax department

What's working for corporate tax executives

A 100-Minute Telephone Conference
with a Live Interactive Q&A Session
Tuesday, December 5, 2006
1:00-2:30 pm Eastern

Register online
More information

Mention Program Code ACCWEB.
Earn CPE while you listen.

Presented by
State Income Tax Monitor, Tax Incentives Alert and Sales & Use Tax Monitor


Effective January 1, 2007, the following fees will increase:

  • The fee for new direct debit installment agreements, where payments are deducted directly from a taxpayer’s bank account, will increase $9 to $52 from $43.

  • The fee for other new installment agreements will more than double, rising from $43 to $105.

  • The fee to restructure an existing or reinstate a defaulted installment agreement will almost double, rising to $45 from $24.

The Office of Management and Budget (OMB) has directed federal agencies to charge user fees which reflect the full cost of goods or services conveying special benefits beyond those accrued by the public in general. Increases in the costs of labor and other processing costs since 1995, when the fees were implemented for installment agreements, have resulted in significant increases.

During fiscal year 2006, almost 2.8 million taxpayers established installment agreements to pay their tax bills. In order to be eligible for an installment agreement, a taxpayer must file all tax returns that are required to be filed and be current with estimated tax payments if applicable.

You may like these other stories...

Boehner addresses GOP priorities ahead of midterm electionsHouse Speaker John Boehner (R-OH) on Thursday delivered what amounted to closing arguments ahead of the November elections, laying out a list of Republican...
As anyone who's ever been through a divorce can attest, the pain of parting with your spouse isn't just emotional—the fallout from divorce can wreak financial havoc as well long after the dust in the courtroom...
Former DOJ Tax Division head Kathryn Keneally joining DLA Piper in New YorkGlobal law firm DLA Piper announced on Thursday that Kathryn Keneally, the former head of the US Justice Department Tax Division, is joining the firm...

Already a member? log in here.

Upcoming CPE Webinars

Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.
Sep 30
This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Oct 21
Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience's communication style.
Oct 23
Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.