Collection Financial Standards Updated

The IRS has updated its Collection Financial Standards, effective as of April 2, 2012. The standards are used to help determine a taxpayer's ability to pay a delinquent tax liability by providing allowable living expenses. Allowable living expenses include those expenses that meet the necessary expense test. The necessary expense test is defined as expenses that are necessary to provide for a taxpayer's (and his or her family's) health and welfare and/or production of income. National standards are provided for: (1) food, clothing and other items, (2) out-of-pocket health care expenses, (3) housing and utilities, and (4) transportation. The housing and utilities standards for NYS are attached.