Increased Fees for Installment Agreements and Offers in Compromise

Posted on 02.05.14

Increased Fees for Installment Agreements and Offers in Compromise

Installment Agreement IRS

The IRS has issued final regulations increasing fees for an installment agreement (an agreement with the IRS to pay taxes in installments) and an offer in compromise (an offer to the IRS to settle one's tax debt for less than what the IRS says is owed). Specifically, effective Jan. 1, 2014, the fee for entering into an agreement to pay taxes in installments has increased from $105 to $120, and the fee for processing an offer in compromise has increased from $150 to $186. However, low-income taxpayers and taxpayers making offers based solely on doubt as to liability will continue to pay no fee.

Sources: Checkpoint; Image, Trusted Tax Attorney.