Greensboro, NC (PRWEB) March 7, 2008
Effectur, Inc has uncovered an interesting and important IRS change to collection standards. Due to increased costs in many areas, the IRS has altered the allowable living expense standards for the second time in five months. What makes this change so unusual is that the last change on October 1, 2007 came with waited anticipation and press. Today's change has no similar fanfare, even despite it's positive and important effects for tax debtors.
A tool used by the IRS collections process, allowable living expense standards are used to determine how much you should be able to pay towards your tax debt liability. In general, they are standards that set the maximum acceptable expenditure for items such as housing, transportation, and food.
Allowable living expense standards are important because they determine your eligibility for programs such as an Offer in Compromise or various installment agreements, as well as the amount the IRS will want you to pay in these arrangements.
Some highlights of the recent changes are:
1. Slightly increased food, clothing and miscellaneous expenses, as well as housing and utilities.
2. Car payments increased from $478 to $489 per allowed vehicle.
3. Out of pocket medical expense standards for those under 65 increased from $54 to $57.
4. Allowed transportation expenses increased for each area; six cities were deleted from having "special" increased allowances.
For the most part, the expenses allowed are more than in the past. The IRS probably avoided any publicity since the changes mean lower payment options and more collection alternatives available to tax debtors.