IRS Updates for Living Expense Standards for 2013

The living expense standards is important when it comes to qualifying for a hardship status with the IRS.  This is important when you owe taxes and don't have the money to pay.  Living expenses are different for different parts of the country and cover basic necessities.


The Internal Revenue Service released the 2013 updates to the Allowable Living Expense Standards on April 1. The ALE standards are used to reduce subjectivity in determining what a taxpayer may claim as basic living expenses necessary to avoid undue hardship when the taxpayer must delay full payment of a delinquent tax. The standard allowances provide consistency and fairness in collection determinations by incorporating average expenditures for basic necessities for citizens in similar geographic areas.

More information on the ALE standards is available at the Collection Financial Standards Web page.