Installment agreement fees.

• Author: Laffie, Lesli S.

Proposed regulations (REG-148576-05, 8/29/06) would increase the user fee charged for installment agreements from $43 to $105. The fee would be $52 for taxpayers agreeing to direct debits from their bank accounts. The Service is trying to encourage taxpayers to use direct bank debits on their installment agreements, because the default rate is much lower than for other agreements.

These fees would apply only to new installment agreements--those in effect 30 days after publication of final rules in the Federal Register. Sec. 6159 allows taxpayers to enter into an agreement with the IRS to pay their tax debts in...