IRS Increasing User Fees in 2014

[Guest Taxed]

§ 300.1 Installment agreement fee.

The fee for entering into an

installment agreement before January 1,

2014, is $105. The fee for entering into

an installment agreement on or after

January 1, 2014, is $120. A reduced fee

applies in the following situations:

§ 300.2 Restructuring or reinstatement of

installment agreement fee.

The fee for restructuring or

reinstating an installment agreement

before January 1, 2014, is $45. The fee

for restructuring or reinstating an

installment agreement on or after

January 1, 2014, is $50.

§ 300.3 Offer to compromise fee.

(1) The fee for processing an

offer to compromise before January 1,

2014, is $150. The fee for processing an

offer to compromise on or after January

1, 2014, is $186.

Sorry the cut and paste did not work. I will try again.

[Mr. Pencil]

The fee for entering into an installment agreement on or after January 1, 2014, is $120.

How does this encourage people to pay their tax? Oh well, it is what it is.

Low income taxpayers can get a $43 agreement by filing a financial statement. Anybody can get $52 with electronic funds transfer. Online approval is automatic up to $50,000, while a written request requires financial disclosure over $25,000. So there are some ways we can help clients, including filing the request.

And don't forget that payment within 120 days does not require an agreement or user fee (just penalty and interest). Even beyond that I advise clients to just send in payments without paying the user fee for a formal agreement.

[Guest Taxed]

I think in the past 2 or 3 years I have had 1 or 2 that did not follow my recommendation of going with electronic fund transfer. So I think the bulk of the taxpayers will still be paying the $52 fee. My clients were below the 50K threshold.

[kcjenkins]

How does this encourage people to pay their tax? Oh well, it is what it is.

Low income taxpayers can get a $43 agreement by filing a financial statement. Anybody can get $52 with electronic funds transfer. Online approval is automatic up to $50,000, while a written request requires financial disclosure over $25,000. So there are some ways we can help clients, including filing the request.

And don't forget that payment within 120 days does not require an agreement or user fee (just penalty and interest). Even beyond that I advise clients to just send in payments without paying the user fee for a formal agreement.

Yes, if a client could pay it out in 12 months or less, I just advise them to make the first payment, which then generates a follow-up bill, which they then respond to with the next payment, which then generates a follow-up bill, which they then respond to with the next payment, etc.