Welcome Guest. Register Now!  


Tax News Latest tax updates, tax laws, news releases


Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 10-01-2007, 04:23 PM
Samatg's Avatar
Administrator
 
Join Date: Jan 2007
Posts: 291
IRS Issues Redesigned Allowable Living Expense Standards

The Internal Revenue Service today issued the 2007 allowable living expense standards.

Allowable living expense standards, also known as collection financial standards, are used to determine the ability of a taxpayer to pay a delinquent tax liability. For purposes of federal tax administration the standards are effective Oct. 1, 2007.


This year the standards have been redesigned to incorporate:
  • a new category for out of pocket health care expenses
  • the elimination of income ranges for national standards for food, clothing and other items
  • a nationwide set of tables for national standard expenses, eliminating separate tables for Alaska and Hawaii
  • an expanded number of household categories for housing and utilities
  • an allowance for cell phone costs in housing and utilities
  • equal allowances for first and second vehicles under transportation expenses
  • fewer Metropolitan Statistical Areas for vehicle operating costs
  • a separate nationwide public transportation allowance
The Allowable Living Expense standards rely on data from the Bureau of Labor Statistics, the Medical Expense Panel Survey and other governmental surveys of actual consumer expenditures and provide a basis for allowances. The IRS adjusts survey data for inflation according to the Consumer Price Index.


Expense information for use in bankruptcy calculations can be found on the Department of Justice U.S Trustee Program Web site. For bankruptcy purposes, the effective date for the new standards will be Jan. 1, 2008.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning