If you owe money to the I.R.S, like many of my Houston, Texas area clients do, one option in dealing with it is to enter into a payment plan or as the I.R.S. calls it, an Installment Agreement. The I.R.S. often thinks much more highly of your ability to pay than you do! That is why if you owe them a lot of money, it's a good idea to hire a professional to help you work out an Installment Agreement with them.
The I.R.S. also charges a fee to enter into a payment plan with them. And as of January 1, 2017, the I.R.S. has increased its filing fee or "user fee" for establishing an Installment Agreement, from $120 to $225. They have also updated their Form 433-D to a January 2017 version, to reflect the higher fees.
Not only is the regular Installment Agreement fee higher, but if you are establishing a Direct Debit Installment agreement (where they deduct it directly from your bank account), the fee has increased from $52 to $107. If you default on an I.R.S. Installment Agreement but reinstate it, the Reinstatement Fee is now $89, an increase from $50.
If you have income below 250% of the Department of Health and Human Services poverty guidelines, you may apply for a reduced user fee of $43. This amount was not increased.
If you owe the I.R.S. over $10,000 and you need help to resolve your taxes, contact our office. We help clients resolve their tax collection issues with their I.R.S.