Please Sir, Can I Have Some More?

As previously reported, the IRS appears to be on a fee-raising binge… And they’ve struck again! According to the IRS, as of the first of the year (January 1, 2007), fees for installment agreements will increase as follows:

• The fee for new direct debit installment agreements, where payments are deducted directly from a taxpayer’s bank account, will increase from $43 to $52.
• The fee for other new installment agreements will increase from $43 to $105.
• The fee to restructure an existing or reinstate a defaulted installment agreement will increase from $24 to $45.

These fees will also apply to the online payment agreements.

Averaged together, this represents an increase of nearly $12 per agreement. You think that doesn’t add up? Last year, taxpayers reached agreement on 2.8 million payment plans. At an average increase of $12 per plan, that adds up to $33.6 million – which is the total cost of the entire Housing and Urban Development budget for the fiscal year 2007.