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Posted by John H. Fisher on December 29, 2006, 8:52 pm
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IRS Announces Installment Agreement User Fee Increases for Some
Taxpayer
This news release supersedes News Release IR-2006-176, dated Nov. 13,
2006.
IR-2006-196, Dec. 28, 2006
WASHINGTON - Beginning Jan. 1, 2007, the Internal Revenue
Service will implement revised user fees for installment
agreements. For eligible individuals with income at or below
certain levels, the fee for entering new agreements will not
increase but remain at the 2006 level.
The Office of Management and Budget has directed federal
agencies to charge user fees reflecting the full cost of
goods or services that convey special benefits to recipients
beyond those accruing to the general public. The installment
agreement user fees have not been increased since first
implemented in 1995. Increases in labor and other costs of
processing have increased the cost of processing installment
agreements.
User fees for entering into a non-direct debit installment
agreement will increase from $43 to $105, and the fee for
direct debit installment agreements will increase from $43
to $52.
Taxpayers with income at or below established levels, based
on the Department of Health and Human Services poverty
guidelines, can apply and be qualified to pay a reduced user
fee of $43 for establishing new agreements including direct
debit installments. Information about requesting the reduced
user fee will be included in installment agreement
acceptance letter sent to individuals.
The fee for restructured or reinstated agreements will
increase from $24 to $45 regardless of income level.
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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