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Addison County, Vermont IRS Wage Levy & Hardship Relief

Last updated: May 29, 2026 · Sources: IRS.gov, HUD.gov, BLS.gov

Understanding IRS Collection Standards in Addison County, VT

When facing IRS enforced collection actions, such as a wage levy (Form 668-W) or bank levy (Form 668-A), taxpayers in Addison County, Vermont, must understand the IRS's collection financial standards. The IRS determines a taxpayer's ability to pay by analyzing their income and allowable expenses using Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals. This calculation establishes your disposable income, which the IRS believes is available to pay your tax debt. The standards are derived from comprehensive data provided by IRS.gov, the Bureau of Labor Statistics (BLS), and the US Census Bureau. For example, a single individual in Addison County is allowed $812 monthly for food, clothing, and other necessities, while a family of four is allowed $1983. If your necessary living expenses, as determined by these standards, exceed your income, you may qualify for economic hardship status under Internal Revenue Code (IRC) §6343(a)(1)(D), potentially leading to a levy release or Currently Not Collectible (CNC) status.

Addison County Housing & Utilities Allowance vs. HUD Fair Market Rent

For Addison County, Vermont, the IRS Collection Financial Standards currently do not provide a specific local housing and utilities allowance (listed as $N/A). This absence creates a critical challenge for taxpayers, as actual housing costs in the region are significant. For instance, the US Department of Housing & Urban Development (HUD) FY2025 Fair Market Rent (FMR) data indicates a 2-bedroom unit in Addison County averages $1460.0 per month, while a 1-bedroom averages $1140.0. When the IRS's standard is $N/A, taxpayers must justify their actual housing expenses. Internal Revenue Manual (IRM) 5.15.1.10 allows for deviations from the national and local standards when a taxpayer can demonstrate that their actual necessary expenses exceed the standard amounts. Providing documentation that your actual rent, such as $1460.0 for a 2-bedroom apartment, significantly exceeds the non-existent IRS standard strengthens an argument for a deviation. While regional shelter CPI data is not available for Addison County, the high HUD FMR figures underscore the economic reality that taxpayers face.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS provides specific allowances for other essential living expenses. The National Standards for food, clothing, and other necessities, based on the Bureau of Labor Statistics Consumer Expenditure Survey, allocate $812 per month for a single individual in Addison County, Vermont. For a family of four, this allowance increases to $1983. Healthcare is another critical component; the IRS National Standards for Out-of-Pocket Healthcare, derived from the Medical Expenditure Panel Survey, allow $75 per person per month for those under 65, and $153 for those 65 and over. For transportation, the IRS Local Standards, based on BLS data and American Automobile Association operating costs, are $588 for one car ownership and an additional $270 for operating costs in this region, totaling $858 per month for one vehicle. For two vehicles, the total allowance is $1446. These allowances are crucial for accurately determining a taxpayer's ability to pay and can directly impact eligibility for hardship relief.

Qualifying for Currently Not Collectible (CNC) Status in Vermont

Achieving Currently Not Collectible (CNC) status in Vermont means the IRS has determined you cannot afford to pay your tax debt without experiencing economic hardship. To qualify, taxpayers in Addison County must submit a comprehensive Form 433-A, detailing all income, assets, and expenses. The IRS will compare your total allowable monthly expenses against your income. For example, a single filer in Addison County might demonstrate necessary expenses including a HUD FMR 1-bedroom rent of $1140.0, food and other necessities of $812, healthcare costs of $75 (if under 65), and transportation costs of $858 for one car. If the total of these allowable expenses ($1140.0 + $812 + $75 + $858 = $2885.0) exceeds their verified monthly income, the IRS may grant CNC status. IRM 5.16.1 outlines the procedures for CNC determinations. While in CNC status, the IRS will generally cease enforced collection actions, including releasing a levy under IRC §6343. Importantly, CNC status does not extend the Collection Statute Expiration Date (CSED), which is typically 10 years from assessment under IRC §6502, meaning the debt can expire while in CNC.

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Frequently Asked Questions

For Addison County, Vermont, the IRS Collection Financial Standards for housing and utilities are currently listed as $N/A. This means there isn't a pre-set allowance you can automatically claim. Instead, taxpayers must justify their actual, reasonable housing costs on Form 433-A. For context, the US Department of Housing & Urban Development (HUD) FY2025 Fair Market Rent (FMR) for Addison County shows a 1-bedroom unit at $1140.0 and a 2-bedroom at $1460.0 per month. If your actual housing costs are in line with or below these FMRs, you should provide documentation. Under IRM 5.15.1.10, the IRS allows for deviations from standard amounts if you can substantiate higher necessary expenses.
To qualify for Currently Not Collectible (CNC) status in Vermont, you must demonstrate to the IRS that you cannot pay your tax debt without experiencing economic hardship. This process begins by accurately completing and submitting Form 433-A, Collection Information Statement. The IRS will compare your total documented monthly income against your allowable living expenses, which are determined by National and Local Standards. For example, a single individual in Addison County is allowed $812 for food and other necessities, $75 for healthcare (under 65), and $858 for one car transportation. If your total allowable expenses, including a reasonable housing expense (e.g., $1140.0 for a 1-bedroom based on HUD FMR), exceed your income, you may qualify. IRM 5.16.1 outlines the procedures for CNC determination, and if granted, the IRS will release levies under IRC §6343.
If the IRS issues a wage levy (Form 668-W) in Addison County, Vermont, the amount they can take from your paycheck is determined by federal law, specifically IRS Publication 1494, Table for Figuring Amount Exempt from Levy. This publication specifies a portion of your wages that is exempt from levy, ensuring you have funds for basic living expenses. For example, a single individual with zero dependents in 2025 has $1096.67 per month exempt from levy. A single individual with one dependent has $1680.0 exempt. For a married individual filing jointly with one dependent, $2286.67 is exempt. Any earnings above these monthly exempt amounts can be levied. Vermont follows these federal limits, which are generally more protective than the state's own wage garnishment limits, which typically follow the federal CCPA standard (25% of disposable earnings or amount above 30x federal minimum wage).
Since the IRS Collection Financial Standards currently list housing and utilities for Addison County, Vermont, as $N/A, taxpayers are expected to claim their actual, reasonable housing expenses. If your rent, for example, $1460.0 for a 2-bedroom unit according to HUD FY2025 Fair Market Rent data, exceeds what the IRS might otherwise deem reasonable without a specific standard, you must provide thorough documentation. This includes lease agreements, utility bills, and proof of payment. Internal Revenue Manual (IRM) 5.15.1.10 explicitly allows for deviations from the standard amounts. By clearly demonstrating that your actual housing costs are necessary and reasonable for your living situation in Addison County, you can successfully argue for their inclusion in your allowable expenses, which is crucial for hardship determinations or setting up an Offer in Compromise.
The IRS generally has 10 years to collect a tax debt, a period known as the Collection Statute Expiration Date (CSED). This 10-year period typically begins from the date the tax was assessed, as outlined in Internal Revenue Code (IRC) §6502. While certain actions, such as filing for bankruptcy, an Offer in Compromise (Form 656), or a Collection Due Process appeal, can pause or extend the CSED, being granted Currently Not Collectible (CNC) status does not extend it. This means that if you are placed in CNC status in Addison County, Vermont, the 10-year collection clock continues to run. This makes CNC status a powerful strategy for taxpayers who cannot pay, as the debt may expire while they are unable to pay, providing permanent relief without extending the period of IRS enforceability.

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