1. Home
  2. Business & Finance
  3. Tax Planning: U.S.
photo of William Perez
William's Tax Planning Blog

By William Perez, About.com Guide to Tax Planning since 2004

IRS Updates Collection Financial Standards

Friday October 5, 2007
The Internal Revenue Service has updated the standard allowable living expenses for use in determining how much a taxpayer can repay on a debt payment plan. In this update, the IRS has added a new category for standard healthcare expenses, has eliminated the separate expense amounts for Alaska and Hawaii, and has updated figures across all expense categories.

The collection financial standards are used frequently when a taxpayer cannot afford to pay his or her taxes in full and is requesting to pay less than the full amount of tax. In my practice, I use these numbers when preparing partial-payment installment agreements and offers in compromise, and when asking the IRS to grant a hardship waiver under their currently not collectible program.

More information:

Comments

No comments yet. Leave a Comment

Leave a Comment

Line and paragraph breaks are automatic. Some HTML allowed: <a href="" title="">, <b>, <i>, <strike>

Explore Tax Planning: U.S.
About.com Special Features

Start your new business on the right foot with these helpful tips. More >

Easy steps to take control of your credit card debt. More >

  1. Home
  2. Business & Finance
  3. Tax Planning: U.S.

©2009 About.com, a part of The New York Times Company.

All rights reserved.