Bounced Checks

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    Raymond Garnsey

    Hope everyone’s holidays were great!

    Clients are struggling financially. Bouncing a lot of checks. NSF charges in November alone are about $450.

    How do I treat the expenses that the checks bounced on the 433 as well as the NSF charges and bounced checks for the past 3 months?

    Raymond Garnsey

    They purchased $45 from a liquor store in November. Do I include that in groceries or ignore when figuring living expenses for the purpose of filling out the 433.

    Eric Green

    Ray, the bounced check fees and the liquor are already included in the national standard food, clothing & misc. It is part of the “Miscellaneous” portion. The booze is included in food.

    “The miscellaneous allowance is for expenses taxpayers may incur that are not included in any other allowable living expense items, or for any portion of expenses that exceed the Collection Financial Standards and are not allowed under a deviation. Taxpayers can use the miscellaneous allowance to pay for expenses that exceed the standards, or for other expenses such as credit card payments, bank fees and charges, reading material and school supplies.”

    You can ignore them and use the IRS standard, as that is all they will allow.

    Raymond Garnsey

    Thanks, Eric.

    Your input is always valued.

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