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INCOME/EXPENSE TABLE (IET)
(Rev. 1-2001)
The Internal Revenue Service uses established National and Local standards for necessary living
expenses when considering Offers in Compromise. Only necessary living expenses will be
allowed. Other expenses, such as charitable contributions, education, credit cards, and
voluntary retirement allotments are generally not considered as necessary living expenses.
Total Income Necessary Living Expenses
Source Gross Claimed Allowed
31. Wages/Salaries (T/P) $16,903.00 42. National Standard $0.00 $1,280.00
Expenses
32. Wages/Salaries $0.00 43. Housing and Utilities $3,464.00 $1,318.00
(Spouse)
33. Interest $0.00 44. Transportation $0.00 $0.00
34. Net Business Income $0.00 45. Health care $0.00 $0.00
(from Form 433-B)
35. Rental Income $296.00 46. Taxes $0.00 $1,450.00
36. Pension (Taxpayer) $145.00 47. Court ordered payments $2,195.00 $2,195.00
37 Pension (Spouse) $0.00 48. Child/dependent care $0.00 $0.00
38. Child Support $0.00 49. Life Insurance $0.00 $0.00
39. Alimony $0.00 50. Secured or legally- $0.00 $0.00
perfected debts (specify)
40. Other - Social $1,551.00 51. Other - $0.00 $0.00
Security
* * * * * * *
41. Total Income $18,895.00 52. Total Expenses $5,659.00 $6,243.00
(Line 41 minus Line 52) NET DIFFERENCE $12,652.00
53. Net difference times (a,b or c) = Amount that could be paid from future income:
Net difference = $12,652.00 Months Amount that could be paid = $607,296.00
48
a) If taxpayer is making a cash offer (offering to pay in 90 days or less) multiply the amount
in line 53 times 48 or the number of months remaining in the statute.
b) If the taxpayer is making a short term deferred payment offer (offering to pay within 2
years) multiply the amount in line 53 times 60 months or times the number of months remaining
in the statute, whichever is shorter.
c) If the taxpayer is making a deferred payment offer (offering to pay over the life of the
statute), use the Deferred Payment Chart to determine the number of months.
The total offer must equal the sum of the equity in assets and the amount that could be paid
from future income unless special circumstance considerations have been approved.
NOTES:
Line 42 National Standard expenses: Maximum allowable by IRS National Expense Standard for
food, housekeeping supplies, apparel and services, and personal care products, based upon gross
monthly income and number of persons in the household.
Line 43 Housing & Utilities expenses: Housing and utility expenses are limited to standards
established for the county of residence and the number of household members.
Line 44 Transportation expenses: Transportation expenses are limited to the standards
established for zero, one or two vehicles, and to a maximum allowable amount for lease or
purchase of one or two vehicles.
Line 31 Wages based on 3-yr average.
Line 35 Rental income, after adjusting for depreciation expense claimed on Schedule E
Line 46 Taxes based on last record of Fed, State, FICA, Medicare paid or withheld.
Line 47 Court ordered payments tentatively allowed, subject to itemization and proof of
payments.
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Last modified: March 27, 2008