Tax News

CCH (cch.taxgroup.com) reports:

The IRS has 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. The standards are effective October 1, 2007. For bankruptcy purposes, the effective date for the new standards will be January 1, 2008.
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; and
--a separate nationwide public transportation allowance.
IR-2007-163, 2007FED ¶46,652
Other References:
Code Sec. 7122
CCH Reference - 2007FED ¶41,130.29
CCH Reference - 2007FED ¶43,352.56
Tax Research Consultant
CCH Reference - TRC IRS: 45,112