IRS Issues Final Regulations on Installment Agreements, Offers-in-Compromise

December 10, 2013

The IRS has issued final regulations that provide user fees charged for processing installment agreements and offers-in-compromise. The regulations affect taxpayers who want to pay their federal tax liabilities through installment agreements and offers-in-compromise. These regulations are effective on December 2, 2013, and apply to installment agreements entered into, restructured, or reinstated and offers-in-compromise processed on or after January 1, 2014.

The fee increases were proposed in NPRM REG-144990-12 (TAXDAY, 2013/08/30, I.2). The final regulations increase the fee for entering into an installment agreement from $105 to $120 (it remains $43 for low-income taxpayers) and the fee for restructuring or reinstating an installment agreement from $45 to $50. The fee for processing an offer-in-compromise increases from $150 to $186. The fee for offers based on doubt as to liability and offers from low-income taxpayers continue to be excepted from a user fee.

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Jo Ann Koontz

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