The IRS is looking to increase the user fee for setting up and installment agreement. Currently the max fee for setting up an installment agreement is $120. Taxpayers can reduce that fee to $52, if they agree to a direct debit, authorizing the IRS to debit their bank account for payment. In January 2017 we are expected to see a change in the fees. The IRS has issued proposed regs and an accompanying news release that would increase the fees for entering into an installment arrangement for paying taxes but also offer a new set of fees for taxpayers who set up an installment agreement via IRS's website. The new fees would take effect for installment agreements entered into on or after Jan. 1, 2017.
Background. Code Sec. 6159 authorizes IRS to enter into an agreement with any taxpayer for the payment of tax in installments to the extent IRS determines that entering into the installment agreement will facilitate the full or partial collection of the tax. Installment agreements are voluntary, and taxpayers may request an installment agreement in person, by completing the appropriate forms and mailing them to IRS, online, or over the telephone.
To ensure your rights are protected and you are not overpaying the IRS, Kolen Services has a licensed Enrolled Agent that you can talk to at 540-693-5881.
Fredericksburg's Tax Expert
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Kolen Services, LLC
"IRS Tax Representation & Business Solutions"
6316 Five Mile Centre Park, Ste 300
Fredericksburg, VA 22405
Office Hours: Open All Year Round
Phone #: 540-693-5881
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