On November 29, 2016 the IRS issued final regulations increasing the fees for entering into an Installment Agreement. The revised fee schedule goes into effect on January 1, 2017.

After January 1, 2017, the increased IRS Installment Agreement fees will be:

• Regular Installment Agreements with monthly payments made either by check or through the EFTPS: $225
• Direct Debit Installment Agreements where the IRS makes automatic withdrawals from the taxpayer's bank account: $107 
• Online Payment Agreements with monthly payments made either by check or through EFTPS: $149 
• Direct Debit Online Payment Agreements where the IRS makes automatic withdrawals from the taxpayer's bank account: $31 
• Restructured/Reinstated Installment Agreements where an existing Installment Agreement must be restructured or reinstated after termination: $89 
• Reduced processing fee for low income taxpayers remains at $43 but is reduced to $31 for Direct Debit Online Payment Agreements.

For many taxpayers, Installment Agreements represent the best option to eliminate IRS debt. The Tax Controversy attorneys at McLaughlinQuinn work with taxpayers and the IRS regularly to structure Installment Agreements within the comfort of our clients' individual finances.

For more information on this Client Update, please contact Thomas P. Quinn, Esq. or Matthew R. Joyce, Esq.