IRS Announces Installment Agreement User Fee Increases for Some Taxpayer


John H. Fisher

IRS Announces Installment Agreement User Fee Increases for Some

This news release supersedes News Release IR-2006-176, dated Nov. 13,

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

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

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.


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