A bill to amend the Internal Revenue Code of 1986 to eliminate installment agreement fees for certain individuals.
- Bill Number
- S. 5144
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-07-28: Read twice and referred to the Committee on Finance.
- Last Updated
- 2026-09-28T20:30:47Z
AI-Generated Summary
Summary of S. 5144
Purpose
This legislation aims to reduce financial burdens on certain low-income taxpayers by removing fees for installment agreements used to pay tax debts over time.
Key Provisions
- Fee Waiver: No fee is charged for an installment agreement if the taxpayer's adjusted gross income (from the most recent available year) is at or below 250 percent of the applicable poverty level, as set by the Secretary of the Treasury.
- Effective Date: The change applies only to installment agreements started more than 12 months after the bill becomes law.
Significant Changes to Existing Law
The bill replaces the current rule in Section 6159(f) of the Internal Revenue Code with a new automatic waiver based on income relative to poverty levels, expanding relief beyond any prior fee structure.
Potential Impacts
- Government Agencies: The Internal Revenue Service may collect fewer fees from qualifying taxpayers, potentially affecting administrative revenue.
- Citizens: Low-income individuals with tax debts gain easier access to payment plans without added costs.
- International Relations: No direct effects identified.
Main Stakeholders Affected
- Low-income taxpayers eligible for the income-based waiver.
- The Internal Revenue Service, responsible for implementing and enforcing the new rule.
Notable Legal, Constitutional, or Political Implications
The measure focuses on tax administration adjustments with no apparent constitutional issues raised in the bill text. It introduces a clear income threshold for fee relief, which could influence future tax policy discussions on affordability for payment plans.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Sen. Bennet, Michael F. [D-CO]
Recent Actions
- 2026-07-28: Read twice and referred to the Committee on Finance.
- 2026-07-28: Introduced in Senate
Bill Versions
- To amend the Internal Revenue Code of 1986 to eliminate installment agreement fees for certain individuals. — issued 2026-07-28 — PDF (2 pages)