Census
Bureau, IRS Data and Administrative Expenses Multipliers
(Cases Filed On and After October 1, 2008)
Section I. Census
Bureau Data |
In Part III of Bankruptcy Form 22A and Part II
of Bankruptcy Form 22C, debtors are instructed
to enter the “Applicable median family income.”
This information is published by the Census Bureau
according to State and family size, and the data
is updated each year. In addition, pursuant to 11
U.S.C. § 101(39A)(B), the data on this Web
site will be further adjusted early each calendar
year based upon the Consumer Price Index for All
Urban Consumers (CPI).
The following link provides the median family income data published in August 2008, reproduced in a format that is designed for ease of use in completing these bankruptcy forms.
Median Family Income Based on State/Territory and Family Size
Available for download in MS Excel format. [ XLS - 44 kb]
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Section II.
IRS Data & General Information for Completing Bankruptcy Forms |
In Part V, Subpart A, of Bankruptcy Form 22A and
Part IV, Subpart A, of Bankruptcy Form 22C, debtors
are instructed to enter “National Standards”
and “Local Standards.” This information
is updated annually by the IRS.
The following links provide the appropriate data,
reproduced in a format designed for ease of use
in completing these bankruptcy forms.
Note:
The IRS expense figures posted on this Web
site are for use in completing bankruptcy
forms. They are not for use in computing taxes
or for any other tax administration purpose.
Expense information for tax purposes can be
found on the IRS
Web site. |
1. General Information Regarding IRS Collection Financial Standards
The following summary describes the IRS's Collection Financial Standards. This information can also be found on the
IRS Web site.
Collection Financial Standards are used to help determine a taxpayer’s ability to pay a delinquent tax liability. Allowable living expenses include those expenses that meet the necessary expense test.The necessary expense test is defined as expenses that are necessary to provide for a taxpayer’s (and his or her family’s) health and welfare and/or production of income.
National Standards for food, clothing and other items apply nationwide. Taxpayers are allowed the total National Standards amount for their family size, without questioning the amount actually spent.
National Standards have also been established for minimum allowances for out-of-pocket health care expenses. Taxpayers and their dependents are allowed the standard amount on a per person basis, without questioning the amount actually spent.
Maximum allowances for housing and utilities and transportation, known as the Local Standards, vary by location. In most cases, the taxpayer is allowed the amount actually spent, or the local standard, whichever is less.
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2. National Standards: Food Clothing & Other Items. National Standards
are published by the IRS, and the table includes
five (5) subcategories of expenses and their combined
total. The National Standards are published by family size.
Part V, Subpart B, on Form 22A and Part IV, Subpart
B, on Form 22C allow for a qualifying debtor to
claim an additional food and clothing ("apparel
and services") expense if the debtor’s
average monthly food and clothing expense exceeds
the combined allowances for those two subcategories,
not to exceed five (5) percent. For purposes of
these bankruptcy forms, the "Food" and
"Apparel & services" subcategories
have been combined and are provided as a separate
line item, which is displayed together with the
five (5) percent calculation of those two subcategories
combined.
National Standards: Food, Clothing & Other Items (General Information can be found on the IRS Web site)
National Standards: Food, Clothing & Other Items (Data)
Available for download in MS Excel format. [XLS - 18 kb]
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3. National Standards: Out-of-Pocket Health Care Expenses. National Standards for Out-of-Pocket Health Care expenses are published by the IRS.
National Standards: Out-of-Pocket Health Care Expenses (General Information can be found on the IRS
Web site)
National Standards: Out-of-Pocket Health Care Expenses (Data)
Available for download in MS Excel format. [XLS - 16 kb]
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4. Local
Standards. The Local Standards are published
by the IRS and consist of two primary expense categories,
"Housing and Utilities" and "Transportation."
Local Standards (General Information can be found on the IRS
Web site)
a. Local Housing and Utilities Expense Standards
- By State, County, and Family Size. The Housing
and Utilities Standards are published by the IRS
by State (including Guam, the Northern Mariana Islands,
Puerto Rico, the Virgin Islands, and the District
of Columbia), county, and family size. For purposes
of these bankruptcy forms, the Housing and Utilities
Standards are provided in two components -- non-mortgage
expenses and mortgage/rent expenses.
b. Local Transportation Expense Standards
- By Metropolitan Statistical Area and Census
Region. The Transportation Standards are published
by the IRS in two components. The Operating
Costs & Public Transportation Costs component
of the Transportation Standards is published by
number of cars and by Metropolitan Statistical
Area (MSA) and Census Bureau region. In order
to use the data, you must determine in what Census
Bureau region your state is located and whether
your county is located in a MSA. The Ownership
Costs component of the Transportation Standards
is published on a national basis, by number of
cars. This information, reproduced in a format
designed for ease of use in completing these bankruptcy
forms, is available at the following link.
- NOTE: The IRS does not currently publish
transportation standards for Guam, Puerto Rico,
the Northern Mariana Islands, or the Virgin
Islands. For purposes of these bankruptcy forms,
the Virgin Islands and Puerto Rico are included
with the Northeast Census Bureau Region, and
Guam and the Northern Mariana Islands are included
with the West Census Bureau Region.
Available for download in MS Excel format. [ XLS - 19 kb]
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Section III. Administrative
Expenses Multipliers |
11 U.S.C. § 707(b)(2)(A)(ii)(III) allows a
debtor who is eligible for chapter 13 to include
in his/her calculation of monthly expenses the actual
administrative expenses of administering a chapter
13 plan in the judicial district where the debtor
resides.
The Executive Office for U.S. Trustees issues
the schedules of actual administrative expenses
which contain, by judicial district, the chapter
13 multiplier needed to complete Official Bankruptcy
Forms 22A and 22C (Statement of Current Monthly
Income and calculations). Form 22A is the form
most chapter 7 debtors will complete and the multiplier
is entered on Line 45.b; Form 22C is the form most
chapter 13 debtors will complete and the multiplier
is entered on Line 50.b.
Schedules of
Actual Administrative Expenses of Administering
a Chapter 13 Plan (as Required by 11 U.S.C. §
707(b)(2)(A)(ii)(III))
Available for download in MS Excel format. [ XLS - 27 kb]
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