However, the IRS can be very restrictive when considering what should and should not be a “necessary living expense.” For example, the IRS considers an automobile payment of $400 a month to be reasonable. In cases where the actual payment exceeds $400, the IRS will grant the taxpayer the $400 maximum to deduct, but will deem the excess an unnecessary expense.
Transportation expenses are another good example. For a household with one vehicle, the IRS only allows $235 a month for expenses relating to the operation of that vehicle, including gasoline. Because of rising gas prices, this amount becomes more and more outdated by the year.
However, the IRS has not changed its policy on this expense. Knowing the best way to present your finances, in the applicable financial disclosure forms, is a key component to working out a feasible settlement. Our tax professionals have completed literally hundreds of applications and disclosure forms and know exactly how to best present your situation.
If you qualify for the Offer in Compromise program… the professionals at Tax Help MD can guarantee that we can help get you a settlement for a fraction of the amount you would otherwise owe. Call (888)632-4506.