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Navigating IRS Wage Levy & Hardship in Alamosa County, Colorado

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

Understanding IRS Collection Standards in Alamosa County

When the IRS evaluates a taxpayer's ability to pay, they utilize specific financial benchmarks known as Collection Financial Standards. These standards are crucial for determining disposable income on Form 433-A, Collection Information Statement, which is often required to negotiate payment plans or qualify for Currently Not Collectible (CNC) status. For Alamosa County, CO, the IRS relies on a combination of National and Local Standards. While specific local housing allowances are not published for Alamosa County, the National Standards for Food, Clothing, and Other necessities allow a single person $812 per month, rising to $1983 for a family of four. These standards are derived from comprehensive data sources including IRS.gov, the Bureau of Labor Statistics, and the US Census Bureau. Understanding these figures is vital, as the IRS must consider a taxpayer's ability to provide for basic living expenses, ensuring that collection actions do not create an economic hardship, as outlined in IRC §6343(a)(1)(D).

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

For Alamosa County, CO, the IRS does not provide specific Local Housing and Utilities Standards, indicating these are currently $N/A for all household sizes on the IRS.gov Collection Financial Standards. This means taxpayers in Alamosa County must substantiate their actual housing and utility expenses. In such cases, the U.S. Department of Housing and Urban Development (HUD) Fair Market Rent (FMR) data becomes a critical benchmark. For instance, the HUD FY2025 FMR for a 2-bedroom unit in Alamosa County is $1220.0 per month. If a taxpayer's actual, necessary housing costs exceed the IRS's unstated or non-published local standard, they can argue for a deviation from the standard, as permitted by Internal Revenue Manual (IRM) 5.15.1.10. Demonstrating actual expenses that align with or exceed the HUD FMR, especially when the IRS standard is $N/A, significantly strengthens a deviation argument. Unfortunately, specific Regional Shelter CPI year-over-year data for this region is not available from the Bureau of Labor Statistics to illustrate recent housing cost trends.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS provides National Standards for essential living expenses. For Alamosa County, CO, a single person is allowed $812 monthly for Food, Clothing, and Other items, which includes $449 for food, $44 for housekeeping supplies, $99 for apparel and services, $45 for personal care products and services, and $175 for miscellaneous items. For a family of four, this allowance increases to $1983. These figures are based on the Bureau of Labor Statistics Consumer Expenditure Survey. Healthcare is another critical allowance, with $75 per month for individuals under 65 and $153 for those 65 and over, derived from the Medical Expenditure Panel Survey. For transportation in Alamosa County, the IRS Local Standards allow $588 for the ownership costs of one car and $270 for operating costs, totaling $858 per month for a single vehicle. These transportation figures are based on Bureau of Labor Statistics data and American Automobile Association operating costs, ensuring taxpayers can maintain necessary mobility for work and essential errands.

Qualifying for Currently Not Collectible (CNC) Status in Colorado

For taxpayers in Alamosa County, CO, facing severe financial hardship, Currently Not Collectible (CNC) status offers a temporary reprieve from IRS enforced collection actions. To qualify, you must demonstrate to the IRS that your allowable monthly living expenses equal or exceed your monthly income, leaving no funds available for tax payments. This process typically involves submitting a detailed Form 433-A, Collection Information Statement. For example, a single filer in Alamosa County might demonstrate monthly expenses including $1020.0 for a 1-bedroom apartment (based on HUD FMR), $812 for food, clothing, and other necessities, $75 for healthcare, and $858 for transportation (one car ownership and operating costs). This totals $2765.0 in essential monthly expenses. If their net monthly income is less than or equal to this amount, they may qualify for CNC. Internal Revenue Manual (IRM) 5.16.1 outlines the procedures for CNC determinations, and qualifying for this status can lead to the release of an existing levy under IRC §6343. Importantly, CNC status does not forgive the tax debt; it merely pauses collection efforts, and the 10-year Collection Statute Expiration Date (CSED) under IRC §6502 continues to run, meaning the debt could eventually expire without payment.

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Frequently Asked Questions

For Alamosa County, CO, the IRS does not publish specific Local Housing and Utilities Standards, listing them as $N/A for all household sizes in their Collection Financial Standards. This means the IRS expects taxpayers to substantiate their actual, necessary housing expenses. A useful benchmark for demonstrating reasonable housing costs is the HUD FY2025 Fair Market Rent (FMR) data, which lists a 1-bedroom unit at $1020.0 and a 2-bedroom unit at $1220.0 per month. Taxpayers must provide documentation of their rent or mortgage and utility bills to the IRS on Form 433-A, Collection Information Statement, to prove their housing costs are reasonable and necessary.
To qualify for Currently Not Collectible (CNC) status in Colorado, you must prove to the IRS that you lack the financial ability to pay your tax debt without experiencing economic hardship. This involves completing and submitting IRS Form 433-A, Collection Information Statement, detailing all your income, assets, and necessary living expenses. The IRS will compare your net disposable income against their National and Local Collection Financial Standards. For example, a single person in Alamosa County with a net income below their combined allowable expenses (e.g., $1020.0 for housing, $812 for food/clothing/other, $75 for healthcare, and $858 for transportation) may qualify. The IRS will review your financial information under IRM 5.16.1 to determine if your case meets the criteria for CNC status, which temporarily halts collection actions.
The IRS can levy your wages in Alamosa County, CO, but is legally required to leave you with a certain amount exempt from the levy, as detailed on IRS Form 668-W, Notice of Levy on Wages, Salary, and Other Income. The exempt amount is based on your filing status and number of dependents, referencing IRS Publication 1494. For 2025, a single individual with zero dependents would have $1096.67 per month exempt from a wage levy. If that same single individual claims one dependent, their exempt amount increases to $1680.0 per month. For a married individual filing jointly with zero dependents, $1096.67 is also exempt, while with one dependent, $2286.67 is exempt. Any earnings above these specified amounts can be seized by the IRS to satisfy your tax debt, subject to the limits of IRC §6331.
Since the IRS does not provide specific Local Housing and Utilities Standards for Alamosa County, CO (listed as $N/A), taxpayers must demonstrate their actual, necessary housing expenses. If your rent in Alamosa County exceeds a reasonable amount, you might still justify it to the IRS. For example, if your 2-bedroom rent is $1220.0, aligning with the HUD FY2025 Fair Market Rent, the IRS is more likely to accept it as a necessary expense. If your rent is higher than typical FMRs, you may need to provide additional justification, such as specific medical needs requiring a larger space or a lack of more affordable alternatives. Internal Revenue Manual (IRM) 5.15.1.10 allows for deviations from the standard if you can substantiate that your actual, necessary expenses are higher and reasonable.
The IRS generally has 10 years to collect a tax debt, a period known as the Collection Statute Expiration Date (CSED), as mandated by Internal Revenue Code (IRC) §6502. This 10-year clock typically begins on the date the tax was assessed. While the IRS can pursue collection actions like levies (IRC §6331) or liens during this period, certain events can pause or extend the CSED. For instance, an Offer in Compromise (OIC) submission, a Collection Due Process (CDP) appeal, or periods where a taxpayer lives outside the U.S. can temporarily suspend the collection statute. Importantly, qualifying for Currently Not Collectible (CNC) status does not extend the CSED; the 10-year clock continues to run while you are in CNC status, meaning the debt could potentially expire without being paid if the IRS does not resume collection efforts before the CSED.

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