User fee proposed for Offers-In-Compromise – IRS News

User fee proposed for Offers-In-Compromise – IRS News – Brief Article

The IRS has issued proposed regulations which would require a $150 user fee for many Offers in Compromise. A taxpayer would normally be required to pay the user fee at the time of the OIC request.

Low-income taxpayers whose incomes fall below the poverty line, as defined by the Department of Health and Human Services or some other measure, would be exempt.

In addition, OICs that only are based on doubt about the tax liability (i.e. where doubt exists that the assessed is correct) also would also be exempt from the user fee.

The Office of Management and Budget has encouraged federal agencies to implement user fees to recover the cost of providing special services to some recipients that others do not use.

Accordingly, the proposed fee is designed to recover part of the cost of processing 010 requests and evaluating the taxpayer’s ability to pay.

This proposal was developed with input from tax professionals, Low-Income Taxpayer Clinics and the IRS Taxpayer Advocate.

Comments on the proposed regulations must be received by Feb. 4.

The proposed regulations are available at

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