by: John B Love IIIPublished on: 02/01/2026A practical overview of IRS Collection Financial Standards and how the IRS determines “allowable living expenses” using national and local standards for food, healthcare, housing, utilities, and transportation—plus a quick explanation of the six-year rule.
IRS Collection Financial Standardsallowable living expensesnecessary expense testIRS payment planIRS collectionsdelinquent tax liabilitynational standards food clothing other itemsout-of-pocket health care standardlocal standards housing and utilitieslocal standards transportationIRS ability to paysix-year rule IRStax debt helpsmall business cash flowbookkeeping for tax issues