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Albuquerque, New Mexico IRS Wage Levy & Hardship Assistance

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

Understanding IRS Collection Standards in Albuquerque, NM MSA

When facing an IRS enforced collection action in Albuquerque, New Mexico, understanding the IRS Collection Financial Standards is crucial. The IRS uses these standards to determine your ability to pay, often calculated through Form 433-A, 'Collection Information Statement for Wage Earners and Self-Employed Individuals.' These standards, derived from comprehensive data sources like IRS.gov, the Bureau of Labor Statistics (BLS), and the U.S. Census Bureau, establish allowable monthly expenses. They comprise National Standards for items like food ($812 for a single person) and Local Standards for transportation. If your allowable expenses exceed your income, you may qualify for economic hardship relief under IRC §6343(a)(1)(D), preventing or releasing a levy. The IRS evaluates your disposable income by comparing your reported income against these non-negotiable and discretionary expense categories.

Albuquerque, NM MSA Housing & Utilities Allowance vs. HUD Fair Market Rent

For taxpayers in the Albuquerque, New Mexico MSA, the IRS Collection Financial Standards currently list 'N/A' for Housing & Utilities. This means the IRS does not have a pre-set local standard, allowing taxpayers to claim their actual, reasonable, and necessary housing and utility expenses. However, these expenses must be justifiable. A common benchmark for reasonableness is the U.S. Department of Housing & Urban Development (HUD) Fair Market Rent (FMR). For example, the HUD FY2025 FMR for a 2-bedroom unit in Albuquerque, NM MSA is $1200.0 per month. If your actual housing costs exceed what the IRS might deem reasonable, you can request a deviation from the standard per IRM 5.15.1.10, particularly when no direct standard exists. While specific regional shelter CPI data is not available for Albuquerque, the general trend in housing costs can support such deviation requests.

Food, Healthcare & Transportation Allowances

The IRS National Standards provide fixed allowances for essential living expenses. For food, a single individual in Albuquerque, NM MSA is allowed $449 per month, while a family of four can claim $1983 (derived from the BLS Consumer Expenditure Survey). Healthcare allowances, based on the Medical Expenditure Panel Survey, are $75 per person under 65 and $153 per person 65 and over monthly. For transportation in the Albuquerque region, the IRS Local Standards (based on BLS data and AAA operating costs) allow $588 for one owned car and an additional $270 for operating costs, totaling $858 per month for one vehicle. For two owned cars, the allowance is $1176 for ownership plus $270 for operating, totaling $1446. These specific allowances are critical in calculating your disposable income for IRS collection purposes.

Qualifying for Currently Not Collectible (CNC) Status in New Mexico

Achieving Currently Not Collectible (CNC) status in New Mexico means the IRS agrees you cannot afford to pay your tax debt right now due to financial hardship. To qualify, you must file Form 433-A, detailing your income, assets, and expenses. The IRS will compare your total monthly income against your total allowable expenses, which include National and Local Standards. For a single filer in Albuquerque, an example calculation might be: $980.0 (1BR HUD FMR for housing, used as a reasonable actual expense) + $812 (food) + $75 (healthcare, under 65) + $858 (transportation, 1 car) = $2725.0 in total allowable expenses. If your net income is less than this total, you may qualify for CNC. IRM 5.16.1 outlines the procedures for CNC, and obtaining this status can lead to the release of a levy under IRC §6343. Importantly, while CNC status pauses collection efforts, it does not extend the 10-year Collection Statute Expiration Date (CSED) under IRC §6502.

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Frequently Asked Questions

For Albuquerque, New Mexico MSA, the IRS Collection Financial Standards currently list 'N/A' for Housing & Utilities. This signifies that the IRS does not impose a fixed housing allowance. Instead, taxpayers are generally permitted to claim their actual, reasonable, and necessary housing expenses. For guidance on what constitutes 'reasonable,' taxpayers often refer to the U.S. Department of Housing & Urban Development (HUD) Fair Market Rent (FMR) data. For instance, the HUD FY2025 FMR for a 1-bedroom unit in this area is $980.0, while a 2-bedroom unit is $1200.0. If your actual expenses are higher than these benchmarks, you can request a deviation as per IRM 5.15.1.10, explaining why your specific circumstances necessitate higher costs.
To qualify for Currently Not Collectible (CNC) status in New Mexico, you must demonstrate to the IRS that you lack the financial ability to pay your tax debt. This process begins by completing and submitting IRS Form 433-A, 'Collection Information Statement for Wage Earners and Self-Employed Individuals,' detailing your income, assets, and all allowable expenses. The IRS will then compare your total monthly income against your total allowable expenses, using both National Standards (e.g., $812 for a single person's food allowance) and Local Standards (e.g., $858 for one car transportation). If your income, after accounting for these essential living expenses, leaves no disposable income to pay your tax debt, the IRS may place your account in CNC status under IRM 5.16.1. This status signifies an economic hardship and can lead to the release of enforced collection actions under IRC §6343.
When the IRS issues a wage levy (Form 668-W) in Albuquerque, New Mexico, the amount exempted from your pay is determined by IRS Publication 1494. This publication outlines specific monthly exemption amounts based on your filing status and the number of claimed dependents. For example, a single individual claiming zero dependents would have $1096.67 per month exempted from their wages in 2025. A married individual filing jointly with one dependent would have $2286.67 per month exempted. Any earnings above these exemption thresholds are subject to the levy. New Mexico generally follows federal Consumer Credit Protection Act (CCPA) limits for state garnishments, but for federal IRS wage levies, the specific amounts in IRS Publication 1494 are the controlling figures, overriding state garnishment laws.
Since the IRS Collection Financial Standards currently list 'N/A' for Housing & Utilities in the Albuquerque, New Mexico MSA, there is no fixed IRS standard to 'exceed.' Instead, the IRS generally allows taxpayers to claim their actual, reasonable, and necessary housing expenses. However, the IRS expects these expenses to be justifiable. A common reference point for reasonableness is the HUD FY2025 Fair Market Rent data; for example, a 2-bedroom unit is $1200.0. If your actual rent is higher than typical for your area and household size, you would need to provide documentation and a detailed explanation to the IRS. You can request a deviation from the implied standard (i.e., the expectation of reasonable actual costs) under IRM 5.15.1.10, explaining the specific circumstances that necessitate your higher housing expenditure.
The IRS generally has 10 years from the date a tax is assessed to collect a tax debt. This period is known as the Collection Statute Expiration Date (CSED), as outlined in Internal Revenue Code (IRC) §6502. It is a critical deadline for both the IRS and taxpayers. While collection efforts, such as levies (Form 668-W, Form 668-A) or liens, must occur within this 10-year window, certain actions can 'toll' or pause the CSED, effectively extending the time the IRS has to collect. These actions include periods when a taxpayer is in Currently Not Collectible (CNC) status, an Offer in Compromise (Form 656) is pending, or bankruptcy is filed. However, it's important to note that while CNC status halts collection, it does not restart the 10-year clock; it merely pauses it, meaning the IRS gains back the time the account was in CNC status.

Sources & Methodology