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Alleghany County-Clifton Forge city-Covington city, Virginia IRS Wage Levy & Hardship Relief

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

Understanding IRS Collection Standards in Alleghany County-Clifton Forge city-Covington city, VA HUD Nonmet

Taxpayers in Alleghany County-Clifton Forge city-Covington city, Virginia, facing IRS enforced collection actions must understand how the IRS calculates their ability to pay. The cornerstone of this assessment is IRS Form 433-A, Collection Information Statement, where the IRS determines a taxpayer's disposable income by comparing their total monthly income against their necessary living expenses. These expenses are largely governed by the IRS Collection Financial Standards, which include National Standards for categories like Food, Clothing, and Other, and Local Standards for Housing, Utilities, and Transportation. For instance, a single individual in Alleghany County is allotted $812 monthly for Food, Clothing & Other. While specific local housing standards for this area are N/A, the IRS will consider actual, reasonable housing costs. If, after accounting for these allowances, a taxpayer has little to no disposable income, they may qualify for economic hardship relief under Internal Revenue Code (IRC) §6343(a)(1)(D), potentially leading to a levy release. This data is rigorously compiled from official sources including IRS.gov, Bureau of Labor Statistics (BLS) data, and US Census Bureau American Community Survey.

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

For residents of Alleghany County-Clifton Forge city-Covington city, VA HUD Nonmet, the IRS Collection Financial Standards indicate 'N/A' for specific Local Housing & Utilities allowances. When a local standard is not available, the IRS will generally allow a taxpayer's actual, reasonable housing and utility expenses. This makes the Department of Housing & Urban Development's (HUD) Fair Market Rent (FMR) data a crucial benchmark. For example, the FY2025 FMR for a 2-bedroom unit in this specific area is $1080.0. If your actual rent and utilities are at or near this figure, it strengthens your argument for necessary expenses on IRS Form 433-A. Should your housing costs exceed typical amounts, Internal Revenue Manual (IRM) 5.15.1.10 outlines the deviation process, allowing taxpayers to justify higher necessary expenses with proper documentation. While regional shelter CPI data from the Bureau of Labor Statistics is not available for this specific region, the FMR provides a robust, localized measure of housing costs, which is vital when negotiating with the IRS.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS Collection Financial Standards provide specific allowances for other essential living expenses. For Food, Clothing & Other, derived from the Bureau of Labor Statistics Consumer Expenditure Survey, a single individual in Alleghany County is allowed $812 per month, escalating to $1478 for a two-person household and $1983 for a family of four. Healthcare allowances, based on the Medical Expenditure Panel Survey, are $75 per person under 65 and $153 per person 65 and over monthly; thus, a family of four, all under 65, would be allotted $300.00 monthly. Transportation is also a significant expense. For Alleghany County-Clifton Forge city-Covington city, VA HUD Nonmet, the Local Standards for Transportation allow $588 for the ownership costs of one car and $270 for operating costs (gas, maintenance, insurance), totaling $858 per month for a single vehicle. For two vehicles, the allowance increases to $1176 for ownership plus $270 for operating costs, summing to $1446. These figures, based on BLS data and American Automobile Association (AAA) operating costs, are critical components when demonstrating your financial situation to the IRS on Form 433-A.

Qualifying for Currently Not Collectible (CNC) Status in Virginia

For taxpayers in Alleghany County-Clifton Forge city-Covington city, Virginia, facing severe financial distress, Currently Not Collectible (CNC) status offers a temporary reprieve from active IRS collection. To qualify, you must demonstrate, usually through IRS Form 433-A, that your allowable monthly expenses meet or exceed your monthly income, leaving no disposable income for tax payments. For a single filer in this area, a potential calculation for allowable expenses could include: $1080.0 for housing (using the 2BR HUD FMR as a reasonable actual expense), $812 for Food, Clothing & Other, $75 for healthcare (under 65), and $858 for one-car transportation, totaling $2825.00 per month. If your income is equal to or less than this, you may qualify. IRM 5.16.1 outlines the specific procedures for CNC classification. Obtaining CNC status can lead to the release of an IRS levy under IRC §6343. Importantly, while in CNC status, the IRS generally ceases collection attempts, but interest and penalties continue to accrue. Crucially, CNC status does not extend the Collection Statute Expiration Date (CSED) under IRC §6502, which typically limits the IRS to 10 years to collect a tax debt from its assessment date, making CNC a strategic option for managing an expiring statute.

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Frequently Asked Questions

For Alleghany County-Clifton Forge city-Covington city, VA HUD Nonmet, the IRS Collection Financial Standards for Housing & Utilities are listed as 'N/A.' This means the IRS will consider your actual, reasonable housing and utility expenses. A strong benchmark for reasonableness is the HUD FY2025 Fair Market Rent (FMR). For instance, the FMR for a 2-bedroom unit in this specific area is $1080.0 per month. If your actual expenses are higher, you may be able to justify a deviation from standard allowances by documenting your necessary costs, as outlined in IRM 5.15.1.10. Always provide clear evidence of your essential housing and utility payments to the IRS.
To qualify for Currently Not Collectible (CNC) status in Virginia, you must demonstrate to the IRS, primarily through a completed IRS Form 433-A (Collection Information Statement), that you lack the financial ability to pay your tax debt after meeting necessary living expenses. The IRS uses its Collection Financial Standards to determine these expenses. For a single filer in Alleghany County-Clifton Forge city-Covington city, VA HUD Nonmet, this would include $812 for Food, Clothing & Other, $75 for out-of-pocket healthcare (under 65), and $858 for one-car transportation. For housing, since the local standard is N/A, your actual reasonable expenses (e.g., $1080.0 for a 2BR apartment based on HUD FMR) would be considered. If your total monthly allowable expenses exceed or equal your monthly income, the IRS may place your account in CNC status, as per IRM 5.16.1 procedures.
When the IRS issues a wage levy (Form 668-W), they are legally permitted to take a portion of your disposable earnings. However, a significant portion of your wages is exempt from levy to ensure you can meet basic living expenses. According to IRS Publication 1494 (2025), the monthly exempt amount for a single individual with zero dependents is $1096.67. For a single individual with one dependent, it rises to $1680.00. A married individual filing jointly with one dependent would have $2286.67 exempt from levy. Only the amount exceeding these exemptions can be levied. Virginia typically follows federal Consumer Credit Protection Act (CCPA) limits for state wage garnishments, which are generally 25% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum wage, whichever is less. However, the IRS levy rules under IRC §6331 take precedence over state limits.
For Alleghany County-Clifton Forge city-Covington city, VA HUD Nonmet, the IRS Collection Financial Standards do not provide a specific local housing allowance (it's 'N/A'). This means the IRS will consider your actual, necessary housing expenses. If your rent is, for example, $1080.0 for a 2-bedroom unit (which aligns with the HUD FY2025 Fair Market Rent for this area), this would generally be considered reasonable. If your actual rent significantly exceeds typical local costs, you can still argue for its necessity. IRM 5.15.1.10 provides guidance on 'deviation' from standard allowances. To justify higher expenses, you must provide thorough documentation proving the costs are necessary and reasonable, such as a lease agreement, utility bills, and a written explanation for why your specific housing situation is essential and cannot be reduced.
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 starts from the date the tax was assessed. It's crucial to understand that certain actions can 'toll' or pause this 10-year period, such as filing for bankruptcy, submitting an Offer in Compromise (OIC), or requesting a Collection Due Process (CDP) hearing. However, being placed in Currently Not Collectible (CNC) status, as detailed in IRM 5.16.1, does NOT extend the CSED. This is a significant advantage of CNC status, as the 10-year collection window continues to run while the IRS refrains from active collection, making it a powerful strategy for managing older tax debts that are approaching their CSED.

Sources & Methodology