Sunday, January 5, 2014

new application fees for offers in compromise and installment agreements



IRS Increases Application Fees for Installment Agreements and Offers in Compromise

NOTE: This headliner is current through the publication date. Since changes may have occurred, no guarantees are made concerning the technical accuracy after the publication date.
Headliner Volume 344
December 20, 2013
All federal agencies are required to charge fees for some of the services they provide. These fees offset agencies’ costs and require only those who use specific services to pay for them. For example, only those who visit a national park pay the day use fee or who apply for a passport pay the application fee.
Agencies are also required to review these fees every two years. In our most recent review, IRS found that some of our costs have increased. As a result, the fees we charge for Installment Payment Agreements and Offers in Compromise will increase effective January 1, 2014.
The fee for entering into installment agreements will be $120, a $15 increase. Taxpayers who make their payments by direct debit will still qualify for a lower fee of $52. Taxpayers who meet low income guidelines established by the Department of Health and Human Services will still pay a fee of $43. The fee to reinstate a defaulted installment agreement will be $50, a $5 increase.
The fee for processing an Offer in Compromise will increase $36 to $186. Taxpayers who meet the low income guidelines still qualify for a fee waiver.  
For more information on IRS Installment Payment Agreements and Offers in Compromise visit our website, IRS.gov. To apply for an IRS installment agreement online, use our Online Payment Agreement application. And to find out whether you are a good candidate for an Offer in Compromise and what a reasonably acceptable offer amount might be if you qualify, use our Offer in Compromise Pre-Qualifier Tool.
Page Last Reviewed or Updated: 20-Dec-2013


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