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IRS Financial Analysis Handbook.  Internal Revenue Manual Provisions. 

Handbook 5.15
Financial Analysis Handbook


Chapter 1
Analyzing Financial Information


Contents


[5.15] 1.1  (11-15-2000)
Overview

  1. An interest based interview (IRM 5.14.1.4) should be conducted in order to determine the appropriate form of case resolution.
  2. If the taxpayer states he or she cannot fully pay the liability, the following case decisions should be considered:
    • Allow an extension of time to full pay (IRM 5.14.2.4)
    • Grant a guaranteed or streamlined installment agreement (IRM 5.14.2.2 and IRM 5.14.2.3) if the taxpayer qualifies for these options
    • Explore possibilities of deferring other debts, or borrowing on or selling assets to pay in a short time
  3. If the taxpayer is unable to meet any of the conditions in (2) above, financial analysis is necessary. Financial information may be secured on:
    • The ACS financial information screen (FIN)
    • Form 433-A, Collection Information Statement for Individuals
    • Form 433-B, Collection Information Statement for Businesses
    • Form 433-F, Collection Information Statement (CIS) (can substitute for Form 433-A for individuals owing less than $100,000)
    • The taxpayer's own financial statement
  4. Analysis of a taxpayer's financial condition provides you with a basis to make one or more of the following case decisions:
    1. Make an installment agreement
    2. File a Notice of Federal Tax Lien.
    3. Explain an offer in compromise.
    4. Report the account currently not collectible.
    5. Recommend or initiate enforcement action if assets are available to pay taxes and a taxpayer is unwilling to convert the assets to cash, and no reasonable alternative for collection exists (see IRM 5.10.1.3.2 for information on conducting a risk analysis
  5. Installment payments may be used for collection of the tax. Such payments are based on the taxpayer's ability to pay, which is determined by the excess of monthly income over allowable expenses. This chapter will assist you in determining the amount of allowable expenses.
  6. See the following exhibits:
    • Exhibit 1-2, Financial Analysis -- Expenses. An alphabetic listing and discussion of major expenses
    • Exhibit 1-3, Questions and Answers to Assist in Financial Analysis
    • Exhibit 1-4, Collection Financial Analysis: Total Monthly National Standards
    • Exhibit 1-5, Collection Financial Analysis: Monthly National Standards -- Itemized
    • Exhibit 1-6, Collection Financial Analysis: Total Monthly National Standards for Alaska
    • Exhibit 1-7, Collection Financial Analysis: Monthly National Standards for Alaska -- Itemized
    • Exhibit 1-8, Collection Financial Analysis: Total Monthly National Standards for Hawaii
    • Exhibit 1-9, Collection Financial Analysis: Monthly National Standards for Hawaii -- Itemized
    • Exhibit 1-10, Collection Financial Analysis: Local Standards: Housing and Utilities
    • Exhibit 1-11, Collection Financial Analysis: Local Standards: Transportation

[5.15] 1.2  (11-15-2000)
Analyzing and Verifying Financial Information

  1. Analyze the income and expenses to determine the amount of disposable income (gross income less allowable expenses) available to apply to the tax liability.

[5.15] 1.2.1  (11-15-2000)
Sources of Information

  1. The following sources may be used to secure finacial information:
    • Information received from the taxpayer.
    • Corporate Files On-Line (CFOL) command codes (IRPTR or RTVUE).
  2. When analyzing a taxpayer's financial situation, compare information on the FIN screen or CIS with CFOL commands or other sources.
    1. If there are significant discrepancies, discuss them with the taxpayer. If substantiation is needed, ask the taxpayer to provide it.
    2. Note discrepancies and their resolution in Comments or history and make necessary corrections to the FIN screen or CIS.

[5.15] 1.2.2  (11-15-2000)
Determining Maximum Collectibility

  1. Analyze income and assets to determine ways of resolving the account. Follow the steps in 5.15.1.1 in order to determine the most appropriate course of action.

[5.15] 1.2.3  (11-15-2000)
Analysis, Substantiation, and Verification of Income and Expenses

  1. Expenses must be reasonable for the size of the family, the geographic location, and any unique individual circumstances. You may allow more than a reasonable amount for an expense if the tax liability including projected accruals can be fully paid within five years. See Section 5.15.1.3.3.1.
  2. A taxpayer is not required to substantiate expenses which are categorized as National Standards unless they exceed the standards.
  3. A taxpayer may be required to substantiate expenses which are categorized as Local Standards or Other Necessary Expenses.
  4. Substantiation of expense amounts could include items like bank statements, credit card vouchers, rent/lease receipts and leases, payment coupons, court orders, contracts, and canceled checks. Taxpayers who own homes should provide documents showing the monthly payment amount, purchase price, date of purchase, and the principal amount due. When obtaining documents for substantiation, ask the taxpayer for copies, not original documents. If necessary, secure telephone numbers and contact names of creditors. These can be used if verification is necessary.
  5. When analyzing expenses for a business taxpayer, make sure that business expenses are not also included under personal expenses. Also, depreciation is not a cash expense for determining disposable income.
  6. Compare income to expenses. If expenses exceed income, ask the taxpayer for an explanation. Look at the last filed return using CFOL cc RTVUE to see if an understatement of income is also present there. If so, consider referral to Examination.
  7. For installment agreement or currently not collectible dispositions, consider future expenses; for example, the birth of a child or need to replace a car.

[5.15] 1.3  (11-15-2000)
Definitions

  1. Allowable expenses . There are two types: necessary and conditional.
  2. Necessary expenses . These must meet the necessary expense test: they must provide for a taxpayer's and his or her family's health and welfare and/or the production of income. The expenses must be reasonable. The total necessary expenses establish the minimum a taxpayer and family need to live. Three types of necessary expenses are:
    1. National Standards. These establish standards for reasonable amounts for five necessary expenses. Four of them come from the Bureau of Labor Statistics (BLS) Consumer Expenditure Survey: food, housekeeping supplies, apparel and services, and personal care products and services. The Service has established standards for the fifth category, Miscellaneous.
    2. Local Standards. These establish standards for two necessary expenses: housing and transportation. Utilities are included in housing.
    3. Other. Other expenses may be allowed if they meet the necessary expense test and they must be reasonable in amount. Since there are no nationally or locally established standards for determining reasonable amounts, you must determine whether the expense is necessary and the amount is reasonable.
  3. Conditional Expenses. These expenses do not meet the necessary expense test. However, they are allowable if the tax liability, including projected accruals, can be fully paid within five years.
  4. Five-year rule. Excessive necessary and conditional expenses may be allowed if the tax liability including projected accruals will be fully paid within five years. Use IDRS cc ICOMP to calculate accruals.
  5. One-year rule. A taxpayer may have up to one year to modify or eliminate excessive necessary or not-allowable conditional expenses if the tax liability including projected accruals cannot be fully paid within five years.
  6. Reasonable amount. For specified expenses, the reasonable amounts are provided by the National and Local Standards. For other expenses you must determine if the amount claimed is reasonable. If the tax liability including accruals can be fully paid within five years, allow the taxpayer's claimed expenses.
  7. Disposable income. This is the amount of income that remains after allowable expenses are deducted from gross income, including deductions required by law to be withheld, or any child support or alimony payments that are made under a court order or legally enforceable written agreement. Amounts required by law to be withheld include, but are not limited to, Federal and State taxes, FICA contributions, Medicare contributions, and wage garnishment payments. Disposable income is the amount available to apply to the tax liability.
  8. Substantiation and verification. A taxpayer substantiates by providing proof of expenses. The Service verifies by checking on information provided by the taxpayer and by obtaining information from internal and external sources.
    1. Substantiation. A taxpayer is required to provide evidence and justification for claimed expenses, except National Standards. See LEM 5.3.1.
    2. Verification. In some cases, it may be necessary to obtain additional information about a taxpayer's financial condition using third party data.

[5.15] 1.3.1  (11-15-2000)
Allowable Expenses

  1. Allowable expenses include:
    1. Necessary expenses -- if reasonable are always allowed. A case would be closed as currently not collectible if there is no disposable income beyond necessary expenses.
    2. Conditional expenses -- are allowable if a tax liability can be fully paid within five years through an installment agreement.
  2. A list of typical necessary and conditional expenses appears in Exhibit 5.15.1-2. This exhibit includes discussions of expense types and conditions which determine whether an expense is allowable.
  3. In discussing expenses with taxpayers, emphasize how much we expect from them rather than how we expect them to spend their money. For example, if the taxpayer has excessive necessary or not-allowable conditional expenses:
    1. Do not tell the taxpayer that he or she cannot own, for example, a boat or summer cabin.
    2. Tell the taxpayer that we expect an amount equal to that going to excessive necessary or not-allowable conditional expenses.
    3. Tell the taxpayer that he or she is responsible for determining what modifications or eliminations must be made to expenses to pay the tax.

[5.15] 1.3.2  (11-15-2000)
Necessary Expenses

  1. Necessary expenses are those used for taxpayers and their families for:
    1. Their health and welfare.
    2. The production of income.
  2. Unless the Service receives full payment within five years (see Section 5.15.1.3.3.1), necessary expenses must be reasonable. The total necessary expenses establish the minimum a taxpayer and family need to live.
  3. Accounts closed as currently not collectible, offer in compromise, and as installment agreements requiring more than five years will be allowed only necessary expenses. For installment agreements which require more than five years, you may grant up to a year to eliminate excessive necessary and not allowable conditional expenses.

[5.15] 1.3.2.1  (11-15-2000)
Necessary Expenses: National Standards

  1. A number of necessary expenses are categorized as National Standards. They are: housekeeping supplies, apparel and services, personal care products and services, food, and miscellaneous.
    1. Except for "miscellaneous," the National Standards are derived from Tables 1, 3, 4, and 5 of the Bureau of Labor Statistics (BLS) Consumer Expenditure Survey. These expenses are stratified by income level; as income levels increase, the percentage of income provided for these expenses decreases. They will be updated yearly as the information becomes available through BLS. The miscellaneous expense is a discretionary amount established by the Service. It is $100 for one person and $25 for each additional person in a taxpayer's household.
    2. The total monthly National Standards appear in Exhibit 5.15.1-4. This exhibit provides the total amount allowed a taxpayer, by gross income level and by number of persons in the household.
    3. The monthly National Standards, by type of expense and by totals, appear in Exhibit 5.15.1-5.
    4. The total monthly National Standards for Alaska appear in Exhibit 5.15.1-6.
    5. The monthly National Standards for Alaska appear in Exhibit 5.15.1-7.
    6. The total monthly National Standards for Hawaii appear in Exhibit 5.15.1-8.
    7. The monthly National Standards for Hawaii appear in Exhibit 5.15.1-9.
  2. National Standards eliminate the need to require justification or substantiation for a number of recurring expenses.
    1. Allow taxpayers the total National Standards amount for their income level. Taxpayers making more than the highest income level shown in the National Standards will be limited to the maximum amount allowed by the National Standards unless they can substantiate and justify a larger amount.
    2. How the amount allowed for National Standards is spent is up to taxpayers. For example, they may spend less for clothing and more for entertainment (including cable T\/V); or they may decide to apply part of the amount to conditional unsecured debts.
    3. A taxpayer who claims more than the total allowed by the National Standards must substantiate and justify as necessary each separate expense of the total.
    EXAMPLE:
    A taxpayer may claim much more for food than allowed if based on special prescribed or required dietary needs.
  3. If a taxpayer can fully pay the tax liability including projected accruals within five years, he or she may be allowed more than the National Standards amount.

[5.15] 1.3.2.2  (11-15-2000)
Necessary Expenses: Local Standards

  1. For some kinds of expenses, the National Standards are not feasible: for example, housing, utilities, and transportation (including car insurance and public transportation).
  2. Local standards for housing and transportation have been developed. Utilities, including telephone, are covered under housing. Taxpayers will be allowed the local standard or the amount actually paid, whichever is less. See Exhibits 5.15.1-10 and 5.15.1-11.
    1. Housing. The housing standard provides the basis for determining whether a taxpayer will be required to pay the Service an amount equal to excessive or not-allowable housing expenses. Standards are established for each county within the district. When deciding whether a taxpayer should be required to pay the Service an amount equal to excessive or not-allowable housing expense, consider the cost of moving to a new residence, the increased cost of transportation to work and school which would result from moving to lower-cost housing, and the tax consequences of the loss of the interest deduction.
    2. Transportation. The transportation standard provides the basis for determining if the taxpayer will be required to pay the Service an amount equal to excessive or not-allowable transportation expenses. (1) As part of the standard, amounts are allowed for car purchase and lease, establishing different rates for a first car and, if allowed, a second or more cars. (2) Consider availability of public transportation if car payments (purchase or lease) will prevent the tax liability being paid in part or in full. Public transportation could be an option if it doesn't significantly increase commuting time and inconvenience the taxpayer.

[5.15] 1.3.2.3  (11-15-2000)
Necessary Expenses: Other

  1. Depending upon individual circumstances, other expenses may meet the necessary expense test: they must provide for the health and welfare of the taxpayer and/or his or her family, or they must be for the production of income.
  2. A taxpayer must substantiate the amounts and justify the expenses as necessary, unless the tax liability will be fully paid, including projected accruals, within five years. Other expenses which may meet the necessary expense test include, but are not limited to:
    1. Child care.
    2. Dependent care: elderly, invalid, or disabled.
    3. Taxes.
    4. Health care.
    5. Court-ordered payments.
    6. Involuntary deductions.
    7. Secured or legally perfected debts (minimum payments).
    8. Life insurance.
    9. Disability insurance for self-employed individual.
    10. Union dues.
    11. Professional association dues.
    12. Accounting and legal fees for representing a taxpayer before the Service, and other fees which meet the necessary expense test.
    13. Optional telephone service (call waiting, call identification, etc.), or long distance calls, if they meet the necessary expense test.
  3. Charitable contributions. To be necessary, charitable contributions have to provide for a taxpayer's or his or her family's health and welfare or be a condition of employment. Otherwise, they are conditional and allowable only if the tax liability, including projected accruals, can be paid within five years.
  4. Education. To be a necessary expense, a taxpayer must demonstrate that the expense is for a physically or mentally handicapped dependent and the education is not provided by public schools; or the expense must be a condition of employment.
  5. The expenses listed in 5.15.1.3.2. do not exhaust the category of necessary expenses. Other expenses may be considered if they meet the necessary expense test; health and welfare and/or the production of income.
  6. If other expenses are determined to be necessary and, therefore, allowable, document the reasons for the decision in the ACS Comments or case history.

[5.15] 1.3.2.4  (11-15-2000)
Necessary Expenses: Other -- Unsecured Debts

  1. Payments on unsecured debts may also be necessary. Allow minimum payments if a taxpayer substantiates and justifies the expense as necessary for either the health and welfare of the taxpayer and/or his or her family or for the production of income. Unsecured debts are rarely necessary expenses. Examples of unsecured debts which may be necessary expenses include:
    1. Payments required for the production of income; for example, payments to suppliers and payments on lines of credit needed for business;
    2. Payment of debts incurred, except to friends and relatives, to pay a federal tax liability.
  2. Except for payments required for production of income, don't allow payments on unsecured debts if the tax can be paid in full within 90 days.

[5.15] 1.3.3  (11-15-2000)
Conditional Expenses

  1. Conditional expenses are those that may be allowed if certain requirements are met.

[5.15] 1.3.3.1  (11-15-2000)
Conditional Expenses: Five-Year Rule for Full Payment

  1. If taxpayers establish they can stay current in all tax requirements and that the tax liability including projected accruals can be paid within five years, all expenses may be allowed, if amounts are reasonable.
  2. Although five years are allowed, base agreements on the taxpayer's actual ability to pay. Don't automatically allow agreements for the five-year maximum if the excess of income less expenses would allow them to pay in a shorter period of time. See IRM 5.14. for Installment Agreement procedures.
  3. Taxpayers may have incurred excessive necessary and not-allowable conditional expenses after the assessment of the tax liability. These expenses are not covered by the five-year rule. If you feel the taxpayer has incurred them to reduce the ability to pay, enforcement against the post-assessment assets or not allowing the expenses in an installment agreement may be appropriate.
  4. In unusual circumstances, it may be appropriate to allow conditional expenses even if the liability, including projected accruals, cannot be paid within five years. The basis for the exception must be fully explained in the case history, and expenses must be substantiated.

[5.15] 1.3.3.2  (11-15-2000)
Conditional Expenses: Unsecured Debts

  1. Don't allow payments on unsecured debt, including credit or charge cards, if omitting them would permit a taxpayer to pay in full within 90 days.
  2. Allow payments if the tax including projected accruals will be paid within five years. Note dates for final payments of the unsecured debts so additional funds can be applied to the tax. Include the increase in payments in installment agreements.
  3. If the tax can not be paid within five years, tell the taxpayer that unsecured debts which are conditional expenses are not allowed, and he/she must pay an amount equal to the expense.

[5.15] 1.3.3.3  (11-15-2000)
One-Year Rule for Eliminating Excessive Necessary and Not-Allowable Conditional Expenses

  1. Taxpayers who cannot full pay their accounts within five years may be given up to one year to modify or eliminate excessive necessary and/or not-allowable conditional expenses. By modifying or eliminating some conditional expenses, the taxpayer may be able to full pay the liability within the five-year limit. This would enable the taxpayer to retain some conditional expenses.
  2. For the first year or part of the year, make an installment agreement for an amount, even if minimal, which can be paid until the date the excessive or not allowable expenses are to be modified or eliminated. See 5.14 for installment agreement instructions.
  3. An installment agreement must include a payment increase at the date the taxpayer is expected to have modified or eliminated excessive necessary or not-allowable conditional expenses. Taxpayers are responsible for determining how best to adjust or eliminate expenses.
  4. If a taxpayer proposes an installment agreement that does not meet these terms, the case must be referred to the Independent Reviewer. See IRM 5.14 for these procedures.
  5. Excessive necessary expenses include, but are not limited to:
    1. Transportation. Car payments (purchase or lease) for luxury cars or for cars which do not meet the necessary expense test .
    2. Education. The taxpayer may be paying for a child's private school or university education. Tell the taxpayer that, unless it is determined to be a necessary expense, it will not be allowed beginning with the following school year, and we will expect an amount equal to the tuition. Taxpayers are responsible for deciding how to adjust or eliminate expenses.
    3. Housing. Taxpayers may be paying more than is warranted by their income level or may be paying more than is necessary for similar housing. Before determining if housing expenses are excessive, consider what is involved: leases, saving money for moving, loss of the interest deduction, and selling a house.
  6. If at the end of the first year, or other determined period of time up to one year, the taxpayer has not modified or eliminated excessive necessary and/or not allowable conditional expenses, grant additional time to do so only in unusual circumstances. Document the basis for the exception.

[5.15] 1.4  (11-15-2000)
Making The Collection Decision

  1. After the income and expense analysis has been completed, a collection decision can be made on the account.
  2. Some of the alternative collection decisions include:
    • Installment Agreement
    • Enforced Collection
    • Offer-in-Compromise
    • Currently Not Collectible

[5.15] 1.4.1  (11-15-2000)
Installment Agreement

  1. In some cases, payments on expense items are not due in regular monthly increments; for example, car insurance may be paid twice a year. Average expense items with varying monthly payments over twelve months unless the variation is excessive.
    1. In such instances, tell taxpayers they are responsible for putting enough money aside to ensure that tax payments are made during months that large payments on other liabilities must be made.
    2. If the installment agreement is for a year or less, it can be set up to reflect changes in payment. Document the expected increase or decrease in expenses, and adjust the installment payment amount accordingly.
  2. In arriving at disposable income, analyze the taxpayer's payroll deductions to ensure they are reasonable and allowable. The only automatically allowable deductions from gross pay or income are federal, state, and local taxes (including FICA and Medicare).
  3. Use locator number XX12 to establish installment agreements on cases involving non-allowable expenses which will be eliminated by the taxpayer, permitting an increase in payment. See IRM 5.14.
  4. If an installment agreement is granted to a taxpayer who has defaulted on a past agreement, document in Comments or the case file the reason for granting another agreement.
  5. If a taxpayer wishes to make payments but financial analysis shows that he or she lacks the resources to do so, the procedures in IRM 5.14.1.8(5) should be followed.

[5.15] 1.4.2  (11-15-2000)
Enforced Collection

  1. After taxpayers have been given the opportunity to resolve their accounts and failed to do so, consider enforcing collection.
  2. See Chapter 6 of IRM 5.14 for the procedures to follow for Independent Review prior to enforcing Collection if you are proposing the rejection of an installment agreement.

[5.15] 1.4.3  (11-15-2000)
Offer-in-Compromise

  1. Consider advising the taxpayer to submit an offer in compromise if payment by installments will not satisfy the tax liability within the life of the CSED plus an allowable extension. See IRM 5.8.

[5.15] 1.4.4  (11-15-2000)
Currently Not Collectible

  1. When financial analysis indicates no means of payment, see IRM 5.16, Currently Not Collectible (CNC) Handbook.
  2. Don't report cases CNC when the taxpayer is allowed time to modify expenses.
  3. Don't allow conditional expenses if a case is closed as CNC.

Exhibit [5.15] 1-1  (11-15-2000)
Using the Tiered Interview With Allowable Expenses

If the taxpayer And: Then:
Can full pay within 120 days   Refer to 5.14
Can NOT full pay within 120 days Qualifies for Streamlined IA Refer to 5.14
  Does NOT qualify for Streamlined IA Complete CIS/FIN and refer to allowable expense procedures in this chapter.
Per CIS/FIN:    
Can full pay (including accruals) within 5 years   5 year rule applies--all expenses (necessary expenses and conditional) may be allowed (see Section 5.15.1.3.3.2.)
Can NOT full pay (including accruals) within 5 years Taxpayer is NOT currently-not-collectible Refer to Section 5.15.1.4.4.
  Taxpayer is NOT currently-not-collectible
        AND
does have excess necessary expenses or not allowed expenses
1 year rule applies--(refer to Section 5.15.1.3.3.3)
  Taxpayer is NOT currently-not-collectible
        AND
does NOT have excess necessary expenses or not allowed expenses
Follow normal IA procedures

Exhibit [5.15] 1-2  (11-15-2000)
Financial Analysis -- Expenses (Reference: Section 5.15.1.3)

National Standards
Apparel and services . Includes shoes and clothing, laundry and dry cleaning, and shoe repair.
Food . Includes all meals, home or away.
Housekeeping supplies . Includes postage and stationary; laundry and cleaning supplies; other household products: cleansing and toilet tissue, paper towels and napkins, lawn and garden supplies, and miscellaneous household supplies.
Miscellaneous . A discretionary allowance. It is $100 for one person and $25 for each additional person in a taxpayer's family.
Personal care products and services . Includes hair care products, haircuts and beautician services, oral hygiene products and articles, shaving needs, cosmetics, perfume, bath preparations, deodorants, feminine hygiene products, electric personal care appliances, personal care services, and repair of personal care appliances.
Local Standards
Utilities . Includes gas, electricity, water, fuel oil, coal, bottled gas, trash and garbage collection, wood and other fuels, septic cleaning, and telephone.
Housing . Usually, only expenses for the place of residence are considered to be necessary. Housing expenses include: mortgage or rent, property taxes, interest, parking, necessary maintenance and repair, homeowner's or renter's insurance, homeowner dues and condominium fees.
Transportation . Vehicle insurance, vehicle payment (lease or purchase), maintenance, fuel, state and local registration, required vehicle inspection, parking fees, tolls, driver's license, public transportation. Transportation costs not required to produce income or ensure health and welfare are not necessary.
Other Necessary Expenses
Accounting and legal fees . Fees are necessary only if they are for representation before the Service or they meet the necessary expense test of health or welfare and/or production of income.
Charitable contributions . These expenses include donations to tax exempt organizations such as: civic organizations, religious organizations (tithing and educational), and medical services or associations. To be necessary, charitable contributions have to provide for the health and welfare of the taxpayer or taxpayer's family; or be a condition of employment.
Child care . Baby sitting, day care, nursery, and preschool. Expenses are necessary if they meet the necessary expense test: health and welfare and/or production of income. Ensure that only a reasonable amount is allowed. Costs of child care can vary greatly. Don't allow unusually large child care expenses if more reasonable alternatives are available.
Court ordered payments . Alimony, child support (including orders made by a state administrative agency), and other court-ordered payments. If the expense is already being deducted directly from a taxpayer's pay, do not include it again as an expense.
Dependent care . For the elderly, invalid, or handicapped. This expense is necessary if there is no alternative to the taxpayer paying the expense.
Education . Education is a necessary expense if required for a physically or mentally challenged child and no public education providing similar services is available. It is also a necessary expense if required as a condition of employment; for example, a teacher whose employment is conditional upon completion of a graduate program.
Health Care . Health insurance, medical services, prescription drugs, and medical supplies (including eyeglasses and contact lenses). A guide dog for someone who is visually handicapped is also allowable.
Involuntary deductions . Deductions from income include FICA, Medicare, and union dues.
Life Insurance . To be necessary, insurance is limited to term policies. Life insurance used as an investment is not a necessary expense. Consider if the payoff of the policy is high compared to the lifestyle of the beneficiaries. Even for term policies, expensive premiums must be justified.
Secured or legally-perfected debts . If the debts meet the necessary expense test of health and welfare and/or production of income, payments will be allowed for these debts. To be allowed, a taxpayer must substantiate that the payments are being made.
Taxes . Current federal (including FICA, Medicare), state, and local tax payments. Delinquent state and local tax payments are necessary and, therefore, allowable depending on the priority of the Federal tax lien and/or Service agreements with state and local taxing agencies.
Unsecured Debts . Minimum payments should be allowed if a taxpayer substantiates and justifies the expense. The necessary expense test of health and welfare and/or production of income must be met. Except for payments required for the production of income, payments on unsecured debts will not be allowed if the tax liability, including projected accruals, can be paid in full within 90 days.
Conditional Expenses
Accounting and legal fees . Fees are necessary only if they are for representation before the Service or they meet the necessary expense test of health and welfare and/or production of income. Other accounting and legal fees are conditional expenses and are allowable if the tax liability can be paid in full, including projected accruals, within five years.
Charitable Contribution . These expenses include donations to tax exempt organizations such as: civic organizations, religious organizations (tithing and educational), and medical services or associations. Charitable expenses which are not considered necessary are conditional expenses and are allowable if the tax liability, including projected accruals, can be paid within five years.
Education . Expenses for private elementary and secondary and public and private college education are conditional expenses and are allowable if the tax liability, including projected accruals, can be full paid within five years.
Housing . Housing other than the principal residence is not a necessary expense. Other housing is a conditional expense allowable only if the tax liability, including projected accruals, can be fully paid within five years. Examples of such housing would include vacation property, owned, rented, leased, or time-shared. Other costs associated with housing are usually conditional. For example, pool service and gardening are optional and could be done by a taxpayer as opposed to the kinds of home maintenance, like roof repair or plumbing, which would qualify as necessary.
Life Insurance . Life insurance used as an investment is a conditional expense. Ask the taxpayer whether it's possible to suspend payments on whole or investment life insurance policies in order to apply the money to the tax liability. If the policy has a cash value, ask the taxpayer to obtain it. If the taxpayer will not voluntarily obtain it, consider enforcement. Consider if the payoff of the policy is high compared to the lifestyle of the beneficiaries. Expensive premiums should be justified. Allow whole life/investment insurance as a conditional expense if the tax liability, including projected accruals, will be paid in full, including accruals, within five years.
Retirement--voluntary payments . Payments will be allowed if the liability, including projected accruals, will be paid in full within five years.
Secured or Legally Perfected Debts . Payments not considered necessary may be allowed if the tax liability including projected accruals will be paid within five years.
Transportation . Transportation not needed for family health and welfare and/or the production of income is not a necessary expense. Other than necessary vehicles are conditional expenses allowable if the liability, including projected accruals, will be paid in full within five years. Examples of conditional transportation expenses are multiple vehicles and recreation vehicles.
Unsecured Debts . Allow payments on unsecured debts if the tax liability including projected accruals will be paid within five years. Otherwise, payments will have to come from the total amount allowed under the National Standards. Don't allow payments on unsecured debts, including credit cards, if omitting them would permit the taxpayer to pay in full within 90 days.

Exhibit [5.15] 1-3  (11-15-2000)
Questions and Answers to Assist in Financial Analysis (Reference: Section 5.15.1.3)

1. Question. If, as a condition of employment, a minister is to tithe, a business executive is required to contribute to a charity, or an employee is required to contribute to a pension plan, will these expenses be allowed?
  Answer. Yes. The only thing to consider is whether the amount being contributed equals the amount actually required and does not include a voluntary portion.
2. Question. A taxpayer has a child in an expensive university. She has already paid the university $25,000 for tuition and housing for the school year, and she intends to pay another $25,000 next July for the following school year. Should this expense be allowed?
  Answer. Yes, if we can get a full pay within five years. Otherwise, the expense will not be allowable. If the provisions of LEM 5.3 are met, the taxpayer may be eligible for an allowable expense to cover the child's enrollment at a local college. The reduced education expense could make it possible for the taxpayer to take advantage of the five-year rule. Tell the taxpayer that we expect an amount equal to the tuition. She is responsible for deciding what expense modifications or eliminations are needed to pay the tax liability.
3. Question. A taxpayer is starting the second year of a two-year lease for a luxury car. Car payments are $1,200 a month. Should the taxpayer be allowed this expense?
  Answer. Yes, if we can get a full pay within five years. Otherwise, the taxpayer must justify the expense. There are some occupations which require luxury cars. The type of car can also depend on the location. A real estate agent will probably drive a more expensive car if she is working in a suburb with very expensive homes than in a middle class suburb. If the taxpayer could be expected to drive a more reasonably priced car, then steps should be taken to eliminate the expense. Ask the taxpayer what the penalty would be to return the car to the dealer. With only one year left on the contract, the penalty might not be negligible compared to the amount we could receive if the taxpayer leased a moderately-priced car.
4. Question. A taxpayer is living in an apartment which rents for $2,000 per month. The lease has another six months to run. The lease agreement includes a termination penalty equal to the lesser of two months rent or the monthly rent due for the balance of the lease. The taxpayer has a $500 security deposit. Local rental data indicates that an acceptable rental apartment in the same general neighborhood can be rented to house the family at a cost of $1,500 per month. The taxpayer cannot full pay within five years. Should the taxpayer be required to move to cheaper living quarters as a condition of an installment agreement?
  Answer. Since breaking the lease would cost more than keeping it until expiration, an installment agreement may be written which allows the taxpayer to live in his present quarters for the balance of the lease but which requires an increase of $500 with the seventh month.
5. Question. A taxpayer is a commissioned sales person living in a home with a $3,000 monthly mortgage. The property was purchased in 1989 at the peak of the local real estate market and has lost approximately 25% of its value in that time due to local market declines. The present value is approximately equal to the mortgage balance. A single family home of a size adequate to house the family is available in a middle class neighborhood convenient to work and schools for $1,800 per month, including utilities. If the taxpayer remains in his home, income and expenses are approximately equal, leaving no disposable income to apply to the delinquent federal taxes. Should the account be reported currently not collectible?
  Answer. No. The difference between the cost of renting and owning indicates that a significant payment can be made if the residence were sold. The loss of the taxpayer's equity is not the primary consideration. Advise the taxpayer he will have up to one year to adjust his expenses so that the Service will then receive an amount equal to the excessive housing expense. Make an installment agreement for a lesser amount in the interim, with an increase in payment at the date the house is supposed to be sold. Advise the taxpayer that enforcement may be taken at the end of a year if the installment agreement defaults for any reason, including because the taxpayer failed to pay the required increase. If there is a default, the taxpayer will have to demonstrate that a good faith effort was made to sell or borrow on the property.
6. Question. A taxpayer claims her cable TV expense of $40 per month is a necessary expense because she lives in a remote area where reception is poor. Should this expense be allowed?
  Answer. Yes, if we can get a full pay within five years. But it is not a necessary expense. Also, the National Standards include an amount for "miscellaneous" which could cover this expense.
7. Question. A taxpayer claims that she needs more than the amount provided by the National Standards because she has five teenage children. Can she get an increased amount?
  Answer. Yes, if she can fully pay the tax liability within five years. Otherwise, she has to substantiate and justify all the expenses included within the National Standards. The fact that she spends more than the National Standards allow for one category, such as clothing, does not in itself constitute a justification.
8. Question. A self-employed taxpayer who has no other source of retirement income has an Individual Retirement Account (IRA). Should payments to the IRA be allowed if it will take six years for her to fully pay the tax liability?
  Answer. No. Tell the taxpayer to apply the amount going to the IRA to the tax liability, in addition to other identified disposable income. If the taxpayer wishes to continue making IRA payments, she must divert the money from allowed expenses.
9. Question. We have a joint tax liability against a married couple. They have submitted a Form 433-A. Our analysis indicates that it will take a four-year installment agreement to fully pay the tax liability. The husband is a truck driver who is responsible for his own food and lodging expenses on the road. He usually pays these as he goes with a credit card. He requests that this monthly payment be allowed. Should we allow the expense?
  Answer. First, we need to determine if these are business expenses. If they are, they should not appear on the Form 433-A. The income which appears on the 433-A should not reflect business expenses which have already been deducted from business income to arrive at personal income. If they are not business expenses and it's determined they are necessary, they should be allowed. How they are paid, cash or credit card, doesn't concern us. If the taxpayer needs to make minimal payments to keep his credit card active, he should be told that the payments should come from the amount allowed by the National Standards, which includes a miscellaneous amount. Then monthly additions to the credit card should be fully paid from the amount allowed for the expense.
10. Question. A taxpayer completes a CIS which indicates that she can fully pay the liability within five years Since the assessment of the tax liability, she has increased her expenses by buying a luxury car worth $35,000, for which she put $12,000 down. She has also moved from an apartment costing $900 monthly to one costing $2,000 monthly. Should the provisions of the the five-year or the one-year rule apply?
  Answer. If it appears that she, although aware of the tax liability, committed part of her disposable income to excessive necessary or not-allowable conditional expenses, the Service is not obligated to allow the excessive expenses even though the liability could be fully paid within five years. It may be appropriate to inform the taxpayer that for the Service to consider an agreement, she will have to pay us immediately an amount equal to the down payment on the car and to pay us, as part of an installment agreement, an amount equal to the increased monthly costs of housing and the car. This amount would be in addition to her other disposable income.
11. Question. A taxpayer is contacted who has a child in parochial school. Should the taxpayer be allowed this expense?
  Answer. Yes, if we can get a full pay within five years. Otherwise, the expense will be allowed if it is for a physically or mentally challenged child and no public education providing similar services is available. If the expense is not to be included among allowable expenses, tell the taxpayer that he or she is responsible for deciding what expense modifications or eliminations are needed to pay the tax liability.
12. Question. Because of budget constraints, a public school district has begun charging fees for certain services which were previously provided free. Should a taxpayer be allowed the expense of paying these fees?
  Answer. Yes, if the fees are required of all children in the school district. Fees for optional services, such as music lessons, are allowable if the tax liability including projected accruals will be paid within five years.
13. Question. A district has an arrangement with Consumer Credit Counseling Services (CCCS) in which CCCS submits installment agreement proposals on behalf of the taxpayer. Will these cases be subject to the new allowable expense procedures?
  Answer. Yes, unless the agreement falls under the streamlined installment agreement procedures. Any installment agreement in which financial analysis is required will be subject to the allowable expense guidelines. The area office must share allowable expense procedures with CCCS.

Exhibit [5.15] 1-4  (11-15-2000)
Financial Analysis: Total Monthly National Standards -- Except Alaska and Hawaii; Reference 5.15.1.1(6) (Effective 10-01-1999)

Total Gross Monthly Income   Number of Persons  
One Two Three Four Over Four
Less than $830 345 466 579 726 +125
$830 to $1,249 391 525 646 762 +135
$1,250 to $1,669 433 630 737 800 +145
$1,670 to $2,499 527 685 781 830 +155
$2,500 to $3,329 554 769 863 924 +165
$3,330 to $4,169 620 830 948 1,063 +175
$4,170 to $5,829 773 957 1,018 1,170 +185
$5,830 and over 991 1,235 1,399 1,473 +195

Exhibit [5.15] 1-4  (11-15-2000)
Financial Analysis: Total Monthly National Standards -- Except Alaska and Hawaii; Reference 5.15.1.1(6) (Effective 10-01-1999)

Expenses include:
Housekeeping supplies
Apparel and services
Personal care products and services
Food
Miscellaneous
For each person in a family with more than four persons, add the amount in the "Over Four" column to the amount in the "Four" column.
Normally, expenses should be allowed only for persons who can be claimed as exemptions on the taxpayer s income tax return.
Dollar amounts are derived from the Bureau of Labor Statistics (BLS) Consumer Expenditure Survey.
A complete breakdown by expense item of these total monthly necessary expenses is in Exhibit 5.15.1-5.

Exhibit [5.15] 1-5  (11-15-2000)
Financial Analysis: Monthly National Standards -- Itemized -- Except Alaska and Hawaii (Effective 10-01-1999) Reference 5.15.1.1(6)

ONE PERSON   Gross Monthly Income        
Item Less than $830 $830 to $1,249 $1,250 to $1,669 $1,670 to $2,499 $2,500 to $3,329 $3,330 to $4,169 $4,170 to $5,829 $5,830 and over
Food 170 198 214 257 270 325 428 456
Housekeeping supplies 18 20 21 26 27 29 35 43
Apparel and services 43 52 75 120 127 129 168 334
Personal care products & services 14 21 23 24 30 37 42 58
Miscellaneous 100 100 100 100 100 100 100 100
Total 345 391 433 527 554 620 773 991

Exhibit [5.15] 1-5  (11-15-2000)
Financial Analysis: Monthly National Standards -- Itemized -- Except Alaska and Hawaii (Effective 10-01-1999) Reference 5.15.1.1(6)

TWO PERSONS Gross Monthly Income
 
Item Less than $830 $830 to $1,249 $1,250 to $1,669 $1,670 to $2,499 $2,500 to $3,329 $3,330 to $4,169 $4,170 to $5,829 $5,830 and over
Food 228 277 351 365 424 438 515 635
Housekeeping supplies 23 27 28 40 46 51 57 74
Apparel & services 71 72 98 121 128 167 202 335
Personal care products & services 19 24 28 34 46 49 58 66
Miscellaneous 125 125 125 125 125 125 125 125
Total 466 525 630 685 769 830 957 1,235

Exhibit [5.15] 1-5  (11-15-2000)
Financial Analysis: Monthly National Standards -- Itemized -- Except Alaska and Hawaii (Effective 10-01-1999) Reference 5.15.1.1(6)

THREE PERSONS Gross Monthly Income
 
Item Less than $830 $830 to $1,249 $1,250 to $1,669 $1,670 to $2,499 $2,500 to $3,329 $3,330 to $4,169 $4,170 to $5,829 $5,830 and over
Food 272 326 390 406 444 488 545 737
Housekeeping supplies 24 28 29 41 47 55 58 77
Apparel & services 110 114 134 143 175 205 206 368
Personal care products & services 23 28 34 41 47 50 59 67
Miscellaneous 150 150 150 150 150 150 150 150
Total 579 646 737 781 863 948 1,018 1,399

Exhibit [5.15] 1-5  (11-15-2000)
Financial Analysis: Monthly National Standards -- Itemized -- Except Alaska and Hawaii (Effective 10-01-1999) Reference 5.15.1.1(6)

FOUR PERSONS Gross Monthly Income
 
Item Less than $830 $830 to $1,249 $1,250 to $1,669 $1,670 to $2,499 $2,500 to $3,329 $3,330 to $4,169 $4,170 to $5,829 $5,830 and over
Food 374 376 406 416 472 574 629 777
Housekeeping supplies 36 37 38 46 49 57 60 78
Apparel & services 114 145 146 147 179 206 244 369
Personal care products & services 27 29 35 46 49 51 62 74
Miscellaneous 175 175 175 175 175 175 175 175
Total 726 762 800 830 924 1,063 1,170 1,473

Exhibit [5.15] 1-5  (11-15-2000)
Financial Analysis: Monthly National Standards -- Itemized -- Except Alaska and Hawaii (Effective 10-01-1999) Reference 5.15.1.1(6)

MORE THAN FOUR PERSONS Gross Monthly Income
 
Item Less than $830 $830 to $1,249 $1,250 to $1,669 $1,670 to $2,499 $2,500 to $3,329 $3,330 to $4,169 $4,170 to $5,829 $5,830 and over
For each additional person, add to four-person total allowance: 125 135 145 155 165 175 185 195

Exhibit [5.15] 1-6  (11-15-2000)
Financial Analysis: Total Monthly National Standards for Alaska (Effective 10-01-1999) Reference 5.15.1.1(6)

Total Gross Monthly Income   Number of Persons  
One Two Three Four Over Four
Less than $830 414 558 693 869 +153
$830 to $1,249 469 628 773 916 +165
$1,250 to $1,669 518 752 882 959 +177
$1,670 to $2,499 627 817 935 994 +189
$2,500 to $3,329 663 919 1,031 1,104 +201
$3,330 to $4,169 743 991 1,133 1,271 +214
$4,170 to $5,829 922 1,145 1,216 1,398 +226
$5,830 and over 1,183 1,474 1,668 1,756 +238

Exhibit [5.15] 1-6  (11-15-2000)
Financial Analysis: Total Monthly National Standards for Alaska (Effective 10-01-1999) Reference 5.15.1.1(6)

Expenses include:
Housekeeping supplies
Apparel and services
Personal care products and services
Food
Miscellaneous
For each person in a family with more than four persons, add the amount in the "Over Four" column to the amount in the "Four" column.
Normally, expenses should be allowed only for persons who can be claimed as exemptions on the taxpayer s income tax return.
Dollar amounts are derived from the Bureau of Labor Statistics (BLS) Consumer Expenditure Survey.
A complete breakdown by expense item of these total monthly necessary expenses is in Exhibit 5.15.1-7.

Exhibit [5.15] 1-7  (11-15-2000)
Financial Analysis: Monthly National Standards for Alaska -- Itemized (Effective 10-01-1999) Reference 5.15.1.1(6)

ONE PERSON Gross Monthly Income
 
Item Less than $830 $830 to $1,249 $1,250 to $1,669 $1,670 to $2,499 $2,500 to $3,329 $3,330 to $4,169 $4,170 to $5,829 $5,830 and over
Food 202 235 255 305 322 388 509 543
Housekeeping supplies 22 24 26 30 32 36 42 51
Apparel & services 51 62 88 142 150 153 199 398
Personal care products & services 17 26 27 28 37 44 50 69
Miscellaneous 122 122 122 122 122 122 122 122
Total 414 469 518 627 663 743 922 1,183

Exhibit [5.15] 1-7  (11-15-2000)
Financial Analysis: Monthly National Standards for Alaska -- Itemized (Effective 10-01-1999) Reference 5.15.1.1(6)

TWO PERSONS Gross Monthly Income
 
Item Less than $830 $830 to $1,249 $1,250 to $1,669 $1,670 to $2,499 $2,500 to $3,329 $3,330 to $4,169 $4,170 to $5,829 $5,830 and over
Food 271 330 416 433 504 521 613 755
Housekeeping supplies 27 32 33 48 55 61 68 87
Apparel & services 84 85 117 143 152 198 242 400
Personal care products & services 23 28 33 40 55 58 69 79
Miscellaneous 153 153 153 153 153 153 153 153
Total 558 628 752 817 919 991 1,145 1,474

Exhibit [5.15] 1-7  (11-15-2000)
Financial Analysis: Monthly National Standards for Alaska -- Itemized (Effective 10-01-1999) Reference 5.15.1.1(6)

THREE PERSONS Gross Monthly Income
 
Item Less than $830 $830 to $1,249 $1,250 to $1,669 $1,670 to $2,499 $2,500 to $3,329 $3,330 to $4,169 $4,170 to $5,829 $5,830 and over
Food 324 389 464 483 528 580 648 877
Housekeeping supplies 28 33 36 49 56 66 69 91
Apparel & services 131 135 159 171 208 244 246 437
Personal care products & services 27 33 40 49 56 60 70 80
Miscellaneous 183 183 183 183 183 183 183 183
Total 693 773 882 935 1,031 1,133 1,216 1,668

Exhibit [5.15] 1-7  (11-15-2000)
Financial Analysis: Monthly National Standards for Alaska -- Itemized (Effective 10-01-1999) Reference 5.15.1.1(6)

FOUR PERSONS Gross Monthly Income
 
Item Less than $830 $830 to $1,249 $1,250 to $1,669 $1,670 to $2,499 $2,500 to $3,329 $3,330 to $4,169 $4,170 to $5,829 $5,830 and over
Food 445 448 483 494 562 682 748 925
Housekeeping supplies 43 44 45 55 58 68 72 92
Apparel & services 135 174 175 176 212 246 290 438
Personal care products & services 32 36 42 55 58 61 74 87
Miscellaneous 214 214 214 214 214 214 214 214
Total 869 916 959 994 1,104 1,271 1,398 1,756

Exhibit [5.15] 1-7  (11-15-2000)
Financial Analysis: Monthly National Standards for Alaska -- Itemized (Effective 10-01-1999) Reference 5.15.1.1(6)

MORE THAN FOUR PERSONS Gross Monthly Income
 
Item Less than $830 $830 to $1,249 $1,250 to $1,669 $1,670 to $2,499 $2,500 to $3,329 $3,330 to $4,169 $4,170 to $5,829 $5,830 and over
For each additional person, add to four-person total allowance: 153 165 177 189 201 214 226 238

Exhibit [5.15] 1-8  (11-15-2000)
Financial Analysis: Total Monthly National Standards for Hawaii (Effective 10-01-1999) Reference 5.15.1.1(6)

Total Gross Monthly Income   Number of Persons  
One Two Three Four Over Four
Less than $830 373 501 622 781 +138
$830 to $1,249 423 564 695 820 +150
$1,250 to $1,669 466 675 790 860 +161
$1,670 to $2,499 565 732 838 892 +172
$2,500 to $3,329 595 824 925 993 +183
$3,330 to $4,169 665 887 1,016 1,139 +194
$4,170 to $5,829 826 1,026 1,090 1,254 +205
$5,830 and over 1,061 1,323 1,497 1,578 +216

Exhibit [5.15] 1-8  (11-15-2000)
Financial Analysis: Total Monthly National Standards for Hawaii (Effective 10-01-1999) Reference 5.15.1.1(6)

Expenses include:
Housekeeping supplies
Apparel and services
Personal care products and services
Food
Miscellaneous
For each person in a family with more than four persons, add the amount in the "Over Four" column to the amount in the "Four" column.
Normally, expenses should be allowed only for persons who can be claimed as exemptions on the taxpayer s income tax return.
Dollar amounts are derived from the Bureau of Labor Statistics (BLS) Consumer Expenditure Survey.
A complete breakdown by expense item of these total monthly necessary expenses is in Exhibit 5.15.1-9.

Exhibit [5.15] 1-9  (11-15-2000)
Financial Analysis: Monthly National Standards for Hawaii -- Itemized (Effective 10-01-1999) Reference 5.15.1.1(6)

ONE PERSON Gross Monthly Income
 
Item Less than $830 $830 to $1,249 $1,250 to $1,669 $1,670 to $2,499 $2,500 to $3,329 $3,330 to $4,169 $4,170 to $5,829 $5,830 and over
Food 181 212 228 274 288 347 456 486
Housekeeping supplies 20 22 23 28 29 31 37 45
Apparel & services 45 55 80 127 135 137 178 357
Personal care products & services 16 23 24 25 32 39 44 62
Miscellaneous 111 111 111 111 111 111 111 111
Total 373 423 466 565 595 665 826 1,061

Exhibit [5.15] 1-9  (11-15-2000)
Financial Analysis: Monthly National Standards for Hawaii -- Itemized (Effective 10-01-1999) Reference 5.15.1.1(6)

TWO PERSONS Gross Monthly Income
 
Item Less than $830 $830 to $1,249 $1,250 to $1,669 $1,670 to $2,499 $2,500 to $3,329 $3,330 to $4,169 $4,170 to $5,829 $5,830 and over
Food 243 296 373 389 452 466 549 677
Housekeeping supplies 24 29 30 42 49 54 61 79
Apparel & services 75 76 104 128 136 177 216 358
Personal care products & services 21 25 30 35 49 52 62 71
Miscellaneous 138 138 138 138 138 138 138 138
Total 501 564 675 732 824 887 1,026 1,323

Exhibit [5.15] 1-9  (11-15-2000)
Financial Analysis: Monthly National Standards for Hawaii -- Itemized (Effective 10-01-1999) Reference 5.15.1.1(6)

THREE PERSONS Gross Monthly Income
 
Item Less than $830 $830 to $1,249 $1,250 to $1,669 $1,670 to $2,499 $2,500 to $3,329 $3,330 to $4,169 $4,170 to $5,829 $5,830 and over
Food 290 348 415 433 473 520 580 785
Housekeeping supplies 25 30 31 43 50 59 62 82
Apparel & services 117 121 143 153 186 218 219 392
Personal care products & services 24 30 35 43 50 53 63 72
Miscellaneous 166 166 166 166 166 166 166 166
Total 622 695 790 838 925 1,016 1,090 1,497

Internal Revenue Manual  

Hndbk. 5.15 Chap. 1 Analyzing Financial Information

  (11-15-2000)

 Source of Above - IRS web site:

 

NOTE: The above limited information is intended for informational purposes only.  If legal advice or other expert assistance is required, the services of a competent professional should be sought, and this general information should not be relied upon without such professional assistance. 

For assistance, please contact A. Nathan Zeliff, Attorney at Law

Page updated: 2/5/2002

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