Gallego Introduces Bill to Eliminate Added Fees for Taxpayers

WASHINGTON, DC – Rep. Ruben Gallego (AZ-03) introduced the Affordable Payment Agreements for Taxpayers Act to eliminate installment agreement user fees for many taxpayers.

“Paying taxes is already enough of a pain. We shouldn’t burden taxpayers even more with obstacles and fees,” said Rep. Gallego. “In 2021, everyday Arizonans were forced to fork over nearly $100 in fees just to enter installment agreements. I am proud to introduce this bill which will save money for hardworking Arizonans who are simply trying to do the right thing and pay what they owe.”

Taxpayers can enter into an installment agreement with the IRS to pay their owed taxes over an extended time frame. Currently, most taxpayers who enter into installment agreements pay a user fee of between $31 and $225. Low-income taxpayers get their fee refunded if they complete the installment plan, but they still must pay$43 upfront unless they do a direct-debit installment agreement.

The Affordable Payment Agreements for Taxpayers Act cuts red tape and lowers costs for taxpayers by eliminating installment agreement user fees for all taxpayers who enter into direct-debt installment agreements and for all taxpayers with incomes below 250 percent of the federal poverty level. This proposal comes from the Taxpayer Advocate Service and is #15 in their 2023 Purple Book.

You can read the full text of the bill here.

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