Collection Financial Standards: Guidelines for Repayment Of Delinquent Taxes

Collection Financial Standards: Guidelines for Repayment of Delinquent Taxes

You may be familiar with the so-called “national standards” used by the Internal Revenue Service in calculating repayment of delinquent taxes. As of April 2, 2012, new “standards” were issued. Those standards are used so that all taxpayers located in a particular locale are treated the same; the Service does not retain the same degree of discretion it used to have when evaluating one’s ability to pay those taxes owed. ┬áThis is especially true if the amount of taxes you owe is less than $50,000.

For instance, for Los Angeles County, the national standards for housing and utilities for a family of 5 or more is $3,134 per month.

The maximum allowed for food, clothing and miscellaneous for a family of 5 is $1,731 per month.

The maximum amount for vehicle ownership costs for 2 cars is $1,034 per month while the maximum operating costs for 2 cars is $590.

Separate from health insurance costs, the maximum allowed for out of pocket health care costs for those over age 65 is $144 per month and for those under age 65 is $60 per month.