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:
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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.
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The fee for other new installment agreements will increase from $43 to $105.
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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.
