Dan Henn CPA
Dan Henn CPA

Tax Pros – Wait to send your next 433-A to the IRS – Collection Financial Standards have been updated for 2023!

Tax Pros – Wait to send your next 433-A to the IRS! The IRS Collection Financial Standards have been updated for 2023!

The IRS changed when they release the updated Collection Financial Standards in 2022 to April.

The have released the new numbers and you may want to take a look at this before you submit your next 433-A. Be sure that you compare this to the numbers on your 433-A to your Tax Resolution software.

Here are some highlights of the new numbers

Food, clothing and miscellaneous – 1 person $841, 2 people $1,389 (2022 numbers were $788 and $1,410)

Health care – $79 under 65; $154 over 65 (2022 was $75 and $150)

Housing – my county of Brevard, FL increased over $200 for 1 person. (I would expect to see this increase in most areas)

Transportation – Ownership 1 car $629, 2 cars $1,258 (2022 $588 (1) car; $1,176 (2) cars)

Operating – NE – $298, MW – $225, SE – $242, W – $264; very minimal to no increase in these numbers.

Again, please be sure to make sure your tax resolution software is up-to-date and recalculate the numbers for cases you have open. You could possibly reduce the available net for them by at least $325 or more just by using the new numbers.

You can find the new numbers with this link or Google “IRS Collection Financial Standards”

If you want to come see our Fast Start Bootcamp at a location near you (yes, we are doing these LIVE and in person). To register, pick the location nearest you with this link

Hope you guys have recovered a little since tax season.

Dan Henn, CPA, CTR™, NTPI Fellow… Continue reading

Tax Professionals be aware of allowances for health care when dealing with IRS collections cases

IRS Collection Financial Standards – National Standards for Out-of-Pocket Health Care

Please note that the IRS Collection Financial Standards are designed for the purpose of calculating repayment of overdue taxes and are effective only for federal tax administration on and after April 25, 2022. For information regarding expenses related to bankruptcy calculations, kindly visit the website of the U.S. Trustee Program.

The allowable out-of-pocket costs for health care for 2023 is $75 for under age 65 and $153 for over age 65.  It is important to note that the standard amounts may change, and thus, it is advisable to check back periodically to ensure that you have the latest version.

The table for health care expenses has been established based on data from the Medical Expenditure Panel Survey and is intended to provide minimum allowances for out-of-pocket health care expenses. These expenses include medical services, prescription drugs, and medical supplies (such as eyeglasses, contact lenses, etc.). This is most items that are bought as part of a prescription from a licensed health care professional. However, elective procedures such as plastic surgery or elective dental work are generally not allowed.

Taxpayers and their dependents are allowed the standard amount monthly on a per-person basis, without being questioned about the amounts they actually spend. In the event that the claimed amount is greater than the total allowed by the health care standards, the taxpayer must provide documentation to substantiate that the expenses are necessary living expenses. Generally, the number of individuals allowed should be the same as the number of dependents claimed on the taxpayer’s most recent year income tax return.

Furthermore, the out-of-pocket health care standard amount is allowed in addition to the amount taxpayers pay for health insurance.… Continue reading

Two Simple Ideas for Creating Recurring Revenue in Your Tax Practice

Happy Thanksgiving! I hope you had a great day with your family!

It is late when I am sending this email. I wanted to send you this quick note.

By the time you are reading this, it is the Friday after Thanksgiving. Most of you know it as Black Friday. The day that brings most retailers from being the red financially into the black. Again, most of you know that as a profit.

Well, we did not want you to not see a Black Friday deal from us.

Many of you are always looking for some way to make more money in your practice without trying to find a new client. There aren’t many ways to do this, but I have one (well actually two) for you.

1) Sell an Audit Protection service to your existing tax prep clients. This is where they pay you in advance some amount (from $29 – $249 (or more)) each year. This fee covers the risk that they either get a notice or selected for an audit by the IRS (also works for the many of you with state income taxes). They bet that they will get a notice or selected for audit. You bet they don’t. If you sell this for $50 per client for a clients, that is $5,000. 500 clients? That is $25k extra in your practice for this year. I bet that would help pay some bills, wouldn’t it?

2) Sell IRS Account Monitoring service. You sell this to your tax resolution cases (you could also offer this to your tax prep clients). This is where you pull their IRS transcripts quarterly and send them a report that your ES payments are made, your Installment Agreement payments are posted, and your tax return hit the transcripts, so your OIC is still good. This can be sold for $250-1,000 (or more) per year.

Yes, is this easy to do and create. Sure! But will you do it on your own. Well, why recreate the wheel when you don’t have to?

We have a toolkit to help you do just that. It is called…

Audit Protection Plan & POA Monitoring Service Toolkit

Normally we sell this for $495. Well, starting now, you can have it for 50% off. But please know this expires at midnight (EST) on 11/30/21. This is a very limited time offer and may not be offered at this price again.

To purchase this … Continue reading