IRS T.D.: Offer in Compromise User Fees Set (IRC §7122)

Processing fee of $205 for offers in compromise, agreements between the IRS and a taxpayer to settle a tax debt for less than the full amount that is owed, the IRS stated in final regulations released March 25. The proposed rules had set a $300 fee. The former amount was $186. The final regulations continue to except offers based on doubt as to liability from a user fee, and expand the definition of low-income taxpayer consistent with tax code Section 7122(c)(3) to help reduce the burden on taxpayers. The regulations are effective for offers in compromise submitted on or ...