Allowable Living Expense changes.

The IRS has revised the methodology for calculating some of the Allowable Living Expense standards used in collection determinations. The changes are reflected in the 2007 standards, which became effective Oct. 1, 2007.

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Redesign elements include:

* A new category: Health Care (which includes medical services, prescription drugs and medical supplies);

* Income ranges for national standard allowances have been eliminated, allowing for the consistent treatment of all taxpayers regardless of income; and

* An allowance for cell phone costs based on Bureau of Labor Statistics expenditure data has been included in the Housing and Utility standards.

For more information, visit www.irs.gov/businesses/small/article/0,,id=173524,00.html.