If you owe back taxes to the Internal Revenue Service (IRS), you will quickly learn that the agency uses many specific terms with specific definitions. One of the terms that you might hear is “collection financial standards.”
What Collection Financial Standards Mean to You
The IRS uses collection financial standards to help determine how much delinquent tax a taxpayer can reasonably pay back to the agency. These standards are used when a taxpayer does not qualify for a streamlined installment agreement. If you owe money to the IRS, it is important to understand the collection financial standards.
Specifically, the IRS applies these standards to your case when determining your ability to repay your back taxes and penalties:
- National standards for food
- National standards for clothing
- National standards for health care expenses
- Local standards for housing
- Local standards for utilities
- Local standards for transportation
The size of your family is also considered when determining the exact allowance for each of these standards.
The Time to Protect Your Rights Is Now
You are already in trouble with the IRS. Your way of life, your standard of living, and your financial future may be in jeopardy unless you figure out a way to resolve your tax problems. Accordingly, the time to take action is now.
If you owe back taxes, read our FREE book, The Ultimate Survival Guide for IRS Problems, and then contact us to get the help you need.