IRS User Fees to Increase

Overdue tax installment payments are about to become more expensive. The service is proposing a stiff IRS user fee hike to go into effect on Jan. 1 2017. The charge for new installment plans will be $225… a $105 jump from today’s cost. The outlay for direct debit installment agreements will more than double to $107. And for restructuring or reinstating an existing plan, the fee will rise $39…to $89. The cost will be less for taxpayers who set up online payment plans.  They’ll pay $149… $31 if they remit funds through direct debits from their accounts. There won’t be any change for low-incomers. They will continue to pay $43.

User fee increases are one way to make up for budget cuts the IRS sees yearly. This is a trend that is likely to continue.