IRS fees for Installment Agreements and Offers in Compromise to increase

Well, which fees are we talking about, first of all? In this case, we’re talking about the fees for Offers in Compromise and Installment Agreements with the IRS. Some interesting facts about this:

• The general fee for an Offer in Compromise will rise on January 1, 2014, from $150 to $186. The curious thing about this is that the amount finally decided upon is so much below the actual cost of the process to the agency, which they report to be $2,718. And if you can’t pay this fee, you can also request an waiver.
• To enter into an Installment Agreement, the fee will rise from $105 (or $52 if you do direct debit or $43 if you’re low income) to $120. Again, interestingly, the actual cost reported by the agency to complete this process is $282 (or $122 for the direct debit option).
• To restructure an Installment Agreement that’s in default will go from $45 to $50, while the agency reports the actual cost to them is $85

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