Are you delinquent on your taxes and can’t afford to pay your tax debt? The IRS released updated Collection Financial Standards on April 2, 2012, to help with calculating delinquent tax repayment of federal taxes. These standards help to define a taxpayer’s ability to pay a tax liability.
Standards include the following four categories of allowable living expenses:
Food, clothing, and other items Food, apparel and services, housekeeping supplies, personal care products and services, and miscellaneous (either living expenses that are not included in the former categories, or expenses in the former categories that exceed the standards)
Out-of-pocket health care expenses In addition to what is paid for health insurance, this includes medical services, prescription drugs, and medical supplies (such as vision care items like glasses and contacts)
Housing and utilities Rent or mortgage, property taxes, insurance, interest, and utilities such as gas, electric, water, garbage collection, landline and cellular phone, internet, and cable; calculated as a local standard according county US Census, American Community Survey, and BLS data, also takes into account how many persons are in the household
Transportation Monthly loan or lease payments as well as operating costs including maintenance, repairs, insurance, fuel, registration, licenses, inspections, parking, and tolls; public transportation alone or in combination with vehicle ownership; calculated as a local standard
The six-year rule for repayment of tax liability allows for payment of living expenses exceeding the Collection Financial Standards and other expenses like minimum payments on student loans and credit cards, as long as the liability can be paid in full within six years. This includes paying off the penalties and interest.
If you need help with delinquent taxes or have an unresolved tax liability, our tax resolution professionals can provide the tax settlement help you need. Visit professionaltaxresolution.com for more information about our tax settlement services. Our staff has the experience and expertise necessary to know which tax settlement option will most effectively resolve your specific back tax issues. Contact us today at (877) 596-4143 or info@protaxres.com to receive a free, no obligation consultation.
