User Fees for Processing Installment Agreements, 78074-78075 [E6-22257]
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78074
Federal Register / Vol. 71, No. 249 / Thursday, December 28, 2006 / Rules and Regulations
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 300
[TD 9306]
RIN 1545–BF69
User Fees for Processing Installment
Agreements
Internal Revenue Service (IRS),
Treasury.
ACTION: Final regulations.
AGENCY:
cprice-sewell on PROD1PC66 with RULES
SUMMARY: This document contains
amendments to the regulations relating
to user fees for installment agreements.
The amendments update the fees to
reflect the actual costs of the services
provided and create an exception to the
increased fee for entering into
installment agreements for low-income
taxpayers. The amendments affect
taxpayers who wish to pay their
liabilities through installment
agreements.
DATES: Effective Date: These regulations
are effective on December 28, 2006.
Applicability Date: These regulations
apply to installment agreements entered
into, restructured, or reinstated on or
after January 1, 2007.
FOR FURTHER INFORMATION CONTACT:
Concerning cost methodology, Eva
Williams, 202–435–5514; concerning
the regulations, William Beard, 202–
622–3620 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background
This document contains amendments
to 26 CFR part 300. On August 30, 2006,
a notice of proposed rulemaking (REG–
148576–05) relating to the user fees
charged for processing installment
agreements was published in the
Federal Register (71 FR 51538). The
charging of user fees implements the
Independent Offices Appropriations Act
(IOAA), which is codified at 31 U.S.C.
9701. The notice of proposed
rulemaking proposed an increase in the
amount of the user fees to reflect the full
cost of the service provided, as directed
by OMB Circular A–25, 58 FR 38142
(July 15, 1993) (the OMB Circular).
The notice of proposed rulemaking
proposed to increase the fee under
§ 300.1 for entering into an installment
agreement from $43 to $105 and to
increase the fee under § 300.2 for
restructuring an installment agreement
from $24 to $45. The notice of proposed
rulemaking also proposed an exception
to the full-cost requirement in cases
where the taxpayer chooses to pay by
way of a direct debit from the taxpayer’s
VerDate Aug<31>2005
15:10 Dec 27, 2006
Jkt 211001
bank account. The OMB Circular allows
the Office of Management and Budget to
grant a waiver of the full cost
requirement and, pursuant to such a
waiver, the proposed fee for entering
into a direct-debit agreement was $52 to
encourage this type of payment.
No public hearing on the notice of
proposed rulemaking was held because
no one requested to speak. Eight
comments were received. After
consideration of all the comments, this
Treasury decision adopts the proposed
regulations with the following change:
the fee for entering into an installment
agreement will remain $43 for lowincome taxpayers, that is, taxpayers
whose incomes fall at or below 250% of
the dollar criteria established by the
poverty guidelines updated annually in
the Federal Register by the U.S.
Department of Health and Human
Services or such other measure as the
Secretary may adopt. The IRS sought
and received an additional waiver from
OMB to charge less than full cost to lowincome taxpayers.
Summary of Comments and
Explanation of Revisions
Of the eight comments on the
proposed regulations, five stated that
the increased fees would have an
adverse impact on low-income
taxpayers. Other commentators stated
that many low-income taxpayers do not
have bank accounts and cannot take
advantage of the reduced fee for directdebit installment agreements. To
accommodate these concerns, the final
regulations except low-income
taxpayers from the increase of the fee for
entering into an installment agreement.
Therefore the fee for entering into an
installment agreement remains $43 for
low-income taxpayers, that is, taxpayers
whose income fall at or below 250% of
the dollar poverty criteria established by
the U.S. Department of Health and
Human Services. The exception does
not apply to the fee for restructuring or
reinstating an installment agreement.
Other commentators recommended
that the installment agreement user fee
be reduced for any taxpayer who
requests an agreement on-line (over the
internet). Under the IOAA, user fees
should be fair and based on the costs to
the government, the value of the service
to the recipient, and the public policy
or interest served. No exception was
created for installment agreements
requested on-line because the benefit of
the installment agreement program to
the taxpayer does not change depending
on the how the installment agreement is
requested, the convenience of on-line
requests provides ample incentive for
this type of application for taxpayers
PO 00000
Frm 00042
Fmt 4700
Sfmt 4700
who have internet access, and taxpayers
who do not have internet access could
not take advantage of the lower fee. The
IRS intends to consider a cost
methodology for installment agreement
user fees that reflects cost differences
attributable to various types of
installment agreements, as well as
whether additional exceptions to full
cost are warranted.
Special Analyses
It has been determined that this notice
of rulemaking is not a significant
regulatory action as defined in
Executive Order 12866. Therefore, a
regulatory assessment is not required. It
is hereby certified that these regulations
will not have a significant economic
impact on a substantial number of small
entities. Accordingly, a regulatory
flexibility analysis is not required. This
certification is based on the information
that follows. The economic impact of
these regulations on any small entity
would result from the entity being
required to pay a fee prescribed by these
regulations in order to obtain a
particular service. The dollar amount of
the fee is not, however, substantial
enough to have a significant economic
impact on any entity subject to the fee.
Pursuant to section 7805(f) of the
Internal Revenue Code, the notice of
proposed rulemaking preceding this
regulation was submitted to the Chief
Counsel for Advocacy of the Small
Business Administration for comment
on its impact on small business.
Although the Administrative
Procedures Act prescribes a thirty-day
waiting period between the date of
publication in the Federal Register and
the applicability date, this regulation is
being made applicable after a shorter
period under the authority provided by
section 7805(b)(1)(B).
Drafting Information
The principal author of these
regulations is William Beard, Office of
Associate Chief Counsel (Procedure and
Administration), Collection, Bankruptcy
and Summonses Division.
Lists of Subjects in 26 CFR Part 300
Reporting and recordkeeping
requirements, User fees.
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR part 300 is
amended as follows:
I
PART 300—USER FEES
Paragraph 1. The authority citation
for part 300 continues to read as
follows:
I
E:\FR\FM\28DER1.SGM
28DER1
Federal Register / Vol. 71, No. 249 / Thursday, December 28, 2006 / Rules and Regulations
Authority: 31 U.S.C. 9701.
I Par. 2. Section 300.0 is amended by
revising paragraph (c) to read as follows:
§ 300.0
User fees; in general.
*
*
*
*
*
(c) Effective date. This part 300 is
applicable March 16, 1995, except that
the user fee for processing offers in
compromise is applicable November 1,
2003; the user fee for the special
enrollment examination, enrollment,
and renewal of enrollment for enrolled
agents is applicable November 6, 2006;
the user fee for entering into installment
agreements on or after January 1, 2007,
is applicable January 1, 2007; and the
user fee for restructuring or
reinstatement of an installment
agreement on or after January 1, 2007,
is applicable January 1, 2007.
I Par. 3. Section 300.1 is amended by
revising paragraph (b) to read as follows:
§ 300.1
Installment agreement fee.
*
*
*
*
*
(b) Fee. The fee for entering into an
installment agreement before January 1,
2007, is $43. The fee for entering into
an installment agreement on or after
January 1, 2007, is $105, except that:
(1) The fee is $52 when the taxpayer
pays by way of a direct debit from the
taxpayer’s bank account; and
(2) Notwithstanding the method of
payment, the fee is $43 if the taxpayer
is a low-income taxpayer, that is, an
individual who falls at or below 250%
of the dollar criteria established by the
poverty guidelines updated annually in
the Federal Register by the U.S.
Department of Health and Human
Services under authority of section
673(2) of the Omnibus Budget
Reconciliation Act of 1981 (95 Stat. 357,
511), or such other measure that is
adopted by the Secretary.
*
*
*
*
*
I Par. 4. Section 300.2 is amended by
revising paragraph (b) to read as follows:
§ 300.2 Restructuring or reinstatement of
installment agreement fee.
cprice-sewell on PROD1PC66 with RULES
*
*
*
*
*
(b) Fee. The fee for restructuring or
reinstating an installment agreement
before January 1, 2007, is $24. The fee
for restructuring or reinstating an
VerDate Aug<31>2005
15:10 Dec 27, 2006
Jkt 211001
installment agreement on or after
January 1, 2007, is $45.
*
*
*
*
*
Kevin M. Brown,
Acting Deputy Commissioner for Services and
Enforcement.
Approved: December 21, 2006.
Eric Solomon,
Assistant Secretary of the Treasury (Tax
Policy).
[FR Doc. E6–22257 Filed 12–27–06; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF EDUCATION
34 CFR Parts 674, 682 and 685
RIN 1840–AC88
Federal Perkins Loan Program, Federal
Family Education Loan Program, and
William D. Ford Federal Direct Loan
Program
Office of Postsecondary
Education, Department of Education.
ACTION: Interim final regulations,
request for comments.
AGENCY:
SUMMARY: The Secretary is amending the
Federal Perkins Loan (Perkins Loan)
Program, Federal Family Education
Loan (FFEL) Program, and William D.
Ford Federal Direct Loan (Direct Loan)
Program regulations to implement the
changes to the Higher Education Act of
1965, as amended (HEA), resulting from
the enactment of the Third Higher
Education Extension Act of 2006
(THEEA), Public Law 109–292. These
interim final regulations reflect the
provisions of the THEEA that authorize
the discharge of the outstanding balance
of certain Perkins, FFEL, and Direct
Loan Program loans for survivors of
eligible public servants and other
eligible victims of the September 11,
2001, terrorist attacks.
DATES: Effective Date: These interim
final regulations are effective January
29, 2007.
Comment date: The Department must
receive any comments on or before
January 29, 2007.
Information collection compliance
date: Affected parties do not have to
comply with the information collection
requirements in §§ 674.64, 682.407, and
685.218 until the Department publishes
in the Federal Register the control
numbers assigned by the Office of
Management and Budget (OMB) to these
information collection requirements.
Publication of the control numbers
notifies the public that OMB has
approved these information collection
requirements under the Paperwork
Reduction Act of 1995.
PO 00000
Frm 00043
Fmt 4700
Sfmt 4700
78075
Address all comments about
these interim final regulations to Mr.
Brian Smith, U.S. Department of
Education, 1990 K Street, NW., 8th
Floor, Washington, DC 20006.
Telephone: (202) 502–7551 or via the
Internet at: Brian.Smith@ed.gov.
If you prefer to deliver your
comments by hand or by using a courier
service or commercial carrier, address
your comments to: Mr. Brian Smith,
1990 K Street, NW., room 8082,
Washington, DC 20006–8542.
If you prefer to send your comments
through the Internet, you may address
them to us at:
DischargeComments@ed.gov. Or you
may send them to us at the U.S.
Government Web site: https://
www.regulations.gov. You must include
the term ‘‘Discharge Interim Final
Comments’’ in the subject line of your
electronic message.
FOR FURTHER INFORMATION CONTACT: For
provisions related to the FFEL and
Federal Perkins Loan Programs: Mr.
Brian Smith, U.S. Department of
Education, 1990 K Street, NW., 8th
Floor, Washington, DC 20006.
Telephone: (202) 502–7551 or via the
Internet at: Brian.Smith@ed.gov. For
provisions related to the Federal Direct
Loan Program: Mr. Jon Utz, U.S.
Department of Education, Union Center
Plaza, 830 First Street, NE., Washington,
DC 20202–5345. Telephone: (202) 377–
4008 or via the Internet at:
Jon.Utz@ed.gov.
If you use a telecommunications
device for the deaf (TDD), you may call
the Federal Relay Service (FRS) at 1–
800–877–8339.
Individuals with disabilities may
obtain this document in an alternative
format (e.g., Braille, large print,
audiotape, or computer diskette) on
request to the contact person listed
under FOR FURTHER INFORMATION
CONTACT.
SUPPLEMENTARY INFORMATION: On
September 30, 2006, Congress enacted
the THEEA, Public Law 109–292. The
changes made by the THEEA include:
• Restrictions on the use of eligible
lender trustees by higher education
institutions that make FFEL Loans.
Under the THEEA, as of January 1, 2007,
the FFEL lending activities of
institutions of higher education and
organizations affiliated with institutions
of higher education through eligible
lender trustee arrangements will be
subject to certain restrictions that apply
to institutions of higher education
acting as lenders directly in the FFEL
Program;
• New discharge provisions for Title
IV, HEA student loans for the survivors
ADDRESSES:
E:\FR\FM\28DER1.SGM
28DER1
Agencies
[Federal Register Volume 71, Number 249 (Thursday, December 28, 2006)]
[Rules and Regulations]
[Pages 78074-78075]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-22257]
[[Page 78074]]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 300
[TD 9306]
RIN 1545-BF69
User Fees for Processing Installment Agreements
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Final regulations.
-----------------------------------------------------------------------
SUMMARY: This document contains amendments to the regulations relating
to user fees for installment agreements. The amendments update the fees
to reflect the actual costs of the services provided and create an
exception to the increased fee for entering into installment agreements
for low-income taxpayers. The amendments affect taxpayers who wish to
pay their liabilities through installment agreements.
DATES: Effective Date: These regulations are effective on December 28,
2006.
Applicability Date: These regulations apply to installment
agreements entered into, restructured, or reinstated on or after
January 1, 2007.
FOR FURTHER INFORMATION CONTACT: Concerning cost methodology, Eva
Williams, 202-435-5514; concerning the regulations, William Beard, 202-
622-3620 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background
This document contains amendments to 26 CFR part 300. On August 30,
2006, a notice of proposed rulemaking (REG-148576-05) relating to the
user fees charged for processing installment agreements was published
in the Federal Register (71 FR 51538). The charging of user fees
implements the Independent Offices Appropriations Act (IOAA), which is
codified at 31 U.S.C. 9701. The notice of proposed rulemaking proposed
an increase in the amount of the user fees to reflect the full cost of
the service provided, as directed by OMB Circular A-25, 58 FR 38142
(July 15, 1993) (the OMB Circular).
The notice of proposed rulemaking proposed to increase the fee
under Sec. 300.1 for entering into an installment agreement from $43
to $105 and to increase the fee under Sec. 300.2 for restructuring an
installment agreement from $24 to $45. The notice of proposed
rulemaking also proposed an exception to the full-cost requirement in
cases where the taxpayer chooses to pay by way of a direct debit from
the taxpayer's bank account. The OMB Circular allows the Office of
Management and Budget to grant a waiver of the full cost requirement
and, pursuant to such a waiver, the proposed fee for entering into a
direct-debit agreement was $52 to encourage this type of payment.
No public hearing on the notice of proposed rulemaking was held
because no one requested to speak. Eight comments were received. After
consideration of all the comments, this Treasury decision adopts the
proposed regulations with the following change: the fee for entering
into an installment agreement will remain $43 for low-income taxpayers,
that is, taxpayers whose incomes fall at or below 250% of the dollar
criteria established by the poverty guidelines updated annually in the
Federal Register by the U.S. Department of Health and Human Services or
such other measure as the Secretary may adopt. The IRS sought and
received an additional waiver from OMB to charge less than full cost to
low-income taxpayers.
Summary of Comments and Explanation of Revisions
Of the eight comments on the proposed regulations, five stated that
the increased fees would have an adverse impact on low-income
taxpayers. Other commentators stated that many low-income taxpayers do
not have bank accounts and cannot take advantage of the reduced fee for
direct-debit installment agreements. To accommodate these concerns, the
final regulations except low-income taxpayers from the increase of the
fee for entering into an installment agreement. Therefore the fee for
entering into an installment agreement remains $43 for low-income
taxpayers, that is, taxpayers whose income fall at or below 250% of the
dollar poverty criteria established by the U.S. Department of Health
and Human Services. The exception does not apply to the fee for
restructuring or reinstating an installment agreement.
Other commentators recommended that the installment agreement user
fee be reduced for any taxpayer who requests an agreement on-line (over
the internet). Under the IOAA, user fees should be fair and based on
the costs to the government, the value of the service to the recipient,
and the public policy or interest served. No exception was created for
installment agreements requested on-line because the benefit of the
installment agreement program to the taxpayer does not change depending
on the how the installment agreement is requested, the convenience of
on-line requests provides ample incentive for this type of application
for taxpayers who have internet access, and taxpayers who do not have
internet access could not take advantage of the lower fee. The IRS
intends to consider a cost methodology for installment agreement user
fees that reflects cost differences attributable to various types of
installment agreements, as well as whether additional exceptions to
full cost are warranted.
Special Analyses
It has been determined that this notice of rulemaking is not a
significant regulatory action as defined in Executive Order 12866.
Therefore, a regulatory assessment is not required. It is hereby
certified that these regulations will not have a significant economic
impact on a substantial number of small entities. Accordingly, a
regulatory flexibility analysis is not required. This certification is
based on the information that follows. The economic impact of these
regulations on any small entity would result from the entity being
required to pay a fee prescribed by these regulations in order to
obtain a particular service. The dollar amount of the fee is not,
however, substantial enough to have a significant economic impact on
any entity subject to the fee. Pursuant to section 7805(f) of the
Internal Revenue Code, the notice of proposed rulemaking preceding this
regulation was submitted to the Chief Counsel for Advocacy of the Small
Business Administration for comment on its impact on small business.
Although the Administrative Procedures Act prescribes a thirty-day
waiting period between the date of publication in the Federal Register
and the applicability date, this regulation is being made applicable
after a shorter period under the authority provided by section
7805(b)(1)(B).
Drafting Information
The principal author of these regulations is William Beard, Office
of Associate Chief Counsel (Procedure and Administration), Collection,
Bankruptcy and Summonses Division.
Lists of Subjects in 26 CFR Part 300
Reporting and recordkeeping requirements, User fees.
Adoption of Amendments to the Regulations
0
Accordingly, 26 CFR part 300 is amended as follows:
PART 300--USER FEES
0
Paragraph 1. The authority citation for part 300 continues to read as
follows:
[[Page 78075]]
Authority: 31 U.S.C. 9701.
0
Par. 2. Section 300.0 is amended by revising paragraph (c) to read as
follows:
Sec. 300.0 User fees; in general.
* * * * *
(c) Effective date. This part 300 is applicable March 16, 1995,
except that the user fee for processing offers in compromise is
applicable November 1, 2003; the user fee for the special enrollment
examination, enrollment, and renewal of enrollment for enrolled agents
is applicable November 6, 2006; the user fee for entering into
installment agreements on or after January 1, 2007, is applicable
January 1, 2007; and the user fee for restructuring or reinstatement of
an installment agreement on or after January 1, 2007, is applicable
January 1, 2007.
0
Par. 3. Section 300.1 is amended by revising paragraph (b) to read as
follows:
Sec. 300.1 Installment agreement fee.
* * * * *
(b) Fee. The fee for entering into an installment agreement before
January 1, 2007, is $43. The fee for entering into an installment
agreement on or after January 1, 2007, is $105, except that:
(1) The fee is $52 when the taxpayer pays by way of a direct debit
from the taxpayer's bank account; and
(2) Notwithstanding the method of payment, the fee is $43 if the
taxpayer is a low-income taxpayer, that is, an individual who falls at
or below 250% of the dollar criteria established by the poverty
guidelines updated annually in the Federal Register by the U.S.
Department of Health and Human Services under authority of section
673(2) of the Omnibus Budget Reconciliation Act of 1981 (95 Stat. 357,
511), or such other measure that is adopted by the Secretary.
* * * * *
0
Par. 4. Section 300.2 is amended by revising paragraph (b) to read as
follows:
Sec. 300.2 Restructuring or reinstatement of installment agreement
fee.
* * * * *
(b) Fee. The fee for restructuring or reinstating an installment
agreement before January 1, 2007, is $24. The fee for restructuring or
reinstating an installment agreement on or after January 1, 2007, is
$45.
* * * * *
Kevin M. Brown,
Acting Deputy Commissioner for Services and Enforcement.
Approved: December 21, 2006.
Eric Solomon,
Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. E6-22257 Filed 12-27-06; 8:45 am]
BILLING CODE 4830-01-P