Current IRS collection methods create economic hardship for innocent spouses and children living with delinquent taxpayers. The allowable monthly living expenses by the IRS are applied to the ‘entire family’ rather than just the delinquent taxpayer. Furthermore, the allowable monthly living expenses are NOT based on actual monthly living costs. Therefore, providing actual living expenses for the entire family are in jeopardy causing foreclosures and/or car repossessions. Creating economic hardship for innocent spouses and children is cruel and unreasonable punishment.
Cruel and unreasonable economic punishment of innocent spouses and children can be reduced by allowing the IRS interest to be tax deductible for the delinquent taxpayer.