IRS Proposes an Increase in User Fees for Installment Agreements and Offers in Compromise – Los Angeles Income Tax Planning and Income Tax Litigation Attorney Bruce Givner

by Bruce Givner on November 4, 2013

The Internal Revenue Service (IRS) has proposed new regulations that would raise the user fees for installment agreements and offers in compromise. The fee for an installment agreement would increase from $105 to $120, while the fee for an offer in compromise would increase from $150 to 186. The fee to restructure or reinstate an installment agreement would increase from $45 to $50. A user fee for an installment agreement that was paid by direct debit from a taxpayer’s bank account would remain at $52, $43 for low-income taxpayers. The user fee for an installment agreement has not been raised since 2007, and since 2003 for offers in compromise.

According to the IRS, while these increases still would not cover the full cost of providing either program, it would help. The Office of Management and Budget granted the IRS a waiver from charging fees that cover the full cost of the two programs.

The new fees will take effect Jan. 1, 2014. The IRS is accepting comments for the proposed new regulations within the next 30 days. A public hearing is scheduled for Oct. 1.

Givner & Kaye focuses on sophisticated income tax planning and compliance, tax litigation and procedure, estate planning, and asset protection plans for individuals and businesses in Encino, Sherman Oaks, Tarzana, Woodland Hills, Agoura, Westlake Village, Thousand Oaks, Studio City, Burbank, Glendale, Pasadena, Bel Air, Brentwood, Pacific Palisades, Marina Del Rey, Manhattan Beach, Torrance, Irvine, Newport Beach, Las Vegas and adjacent areas. Call Los Angeles Estate Planning and Asset Protection Plan Attorneys Givner & Kaye at (310) 207-8008 today.

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