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...

Legislation coming out of Washington just might reduce homeowners' burden for disaster insurance. It's a topic very much on everyone's minds since the mudslide in Oso, Washington. The loss of human life was...
Divorce is hard, and the IRS isn't going to make it any easier. The IRS generally says "no" to tax deductions that might ease the pain of divorce. In certain circumstances, however, you might be able to salvage...
IRS chief: New rule on the way for tax-exempt groupsIRS Commissioner John Koskinen told the USA Today on Monday that the agency will likely rewrite a proposed rule regulating the political activities of nonprofit groups to...

Upcoming CPE Webinars

Apr 17
In this exciting presentation Excel expert David H. Ringstrom, CPA shares tricks that you can use with pivot tables every day. Remember, either you work Excel, or it works you!
Apr 22
Is everyone at your organization meeting your client service expectations? Let client service expert, Kristen Rampe, CPA help you establish a reputation of top-tier service in every facet of your firm during this one hour webinar.
Apr 24
In this session Excel expert David Ringstrom, CPA introduces you to a powerful but underutilized macro feature in Excel.
Apr 25
This material focuses on the principles of accounting for non-profit organizations' revenues. It will include discussions of revenue recognition for cash and non-cash contributions as well as other revenues commonly received by non-profit organizations.