Why is there ordinarily a discrepancy between what the taxpayer calculates they are able to pay as opposed to what the IRS determines they can pay?
A taxpayer will provide their net income and indicate their actual expenses on the Collection Information Statement. However, the IRS will use a taxpayer’s gross income and adjust a taxpayer’s actual expenses to an amount the IRS considers to be an “allowable expense”.
What to do if there is an IRS discrepancy in amounts owed? was last modified: February 10th, 2016 by David Klasing