Installment Agreements Increase in 2007
Sometimes regardless of how well we attempt to plan, we end up owing the
federal government additional taxes. If things are really not going
well, the amount we owe is more than what we have available.
Thus we look for ways to "finance" those tax payments. While there are
almost always better alternatives, we can finance our payments with the
The IRS charges a user fee for processing requests for installment
agreements. For many years that fee (which is in addition to any taxes,
interest, or penalties owed) has been $43.
Beginning on January 1, 2007, the user fee charged by the IRS is increasing
to $105. (It looks like they are catching up for many years of not
For those people already involved in an installment agreement, but needing
to make adjustments in the terms of the agreement due to changes in their
financial situation, the adjustment fee is increasing from $24 to $45.
The fee for those who use direct debit when entering into a new
installment will be $52.