The Internal Revenue Service has issued a new set of allowable living expense standards that it will use to determine the ability of a taxpayer to pay a delinquent tax liability.
The expenses must be necessary to provide for a taxpayer's (and their family's) health and welfare while paying off the tax liability. The standards now incorporate a new category for out-of-pocket health care expenses, including medical services, prescription drugs, and medical supplies such as eyeglasses and contact lenses. The category uses an average household standard amount per person for taxpayers and their dependents under 65, and for those individuals who are 65 and older.
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