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Aurora County, South Dakota IRS Wage Levy & Hardship Assistance

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

Understanding IRS Collection Standards in Aurora County, SD

When the IRS assesses your ability to pay tax debt in Aurora County, SD, they rely on a detailed financial analysis documented on Form 433-A, 'Collection Information Statement for Wage Earners and Self-Employed Individuals.' This form is crucial for determining your disposable income by comparing your total income against a set of IRS-defined allowable living expenses. These expenses are categorized into National Standards, covering essential costs like food, clothing, and personal care, and Local Standards for housing, utilities, and transportation. For a single individual in Aurora County, SD, the IRS National Standards allow $812 monthly for food, clothing, and other necessities. A family of four is allotted $1983 for these categories. While specific IRS Local Standards for housing and utilities are not available for Aurora County, SD, the IRS does provide Local Standards for transportation, such as $858 for one owned car (comprising $588 for ownership and $270 for operating costs). These standards, derived from IRS.gov Collection Financial Standards, Bureau of Labor Statistics (BLS) data, and US Census Bureau information, are critical in determining if you meet the criteria for economic hardship under IRC §6343(a)(1)(D), which could prevent or release an IRS levy.

Aurora County, SD Housing & Utilities Allowance vs. HUD Fair Market Rent

For taxpayers in Aurora County, South Dakota, determining an accurate housing and utilities allowance is a critical step in negotiating with the IRS. While the IRS Collection Financial Standards do not provide specific housing and utilities allowances for Aurora County, SD (indicated as $N/A for all household sizes), it's imperative to present your actual, reasonable housing costs. The US Department of Housing & Urban Development (HUD) provides Fair Market Rent (FMR) data, which can serve as a strong benchmark. For instance, the HUD FY2025 Fair Market Rent for a 2-bedroom residence in Aurora County, SD, is $1010.0 per month. If your actual housing expenses exceed the IRS's unstated allowance or are higher than the general regional averages, you may be able to argue for a deviation from standard allowances. Internal Revenue Manual (IRM) 5.15.1.10 outlines the process for granting such deviations, allowing for higher necessary expenses if substantiated. This is particularly relevant when local economic factors, such as the regional shelter Consumer Price Index (CPI), which is not available for this specific region, impact living costs. Documenting that your legitimate rent, like the $1010.0 for a 2BR, exceeds any implied or past IRS allowances significantly strengthens your case for a higher expense allowance.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS considers other essential living expenses when evaluating your ability to pay. The National Standards for food, clothing, and other items are uniform across the U.S. and are based on the Bureau of Labor Statistics Consumer Expenditure Survey. For Aurora County, SD, a single person is allowed $812 per month for these necessities, while a family of four is allotted $1983. Healthcare is another critical allowance, with the IRS National Standards for Out-of-Pocket Healthcare allowing $75 per month per person under 65 and $153 per month per person 65 and over, derived from the Medical Expenditure Panel Survey. For a family of four, all under 65, this totals $300 per month. Transportation costs are addressed by IRS Local Standards, which vary by region and are based on BLS data and American Automobile Association operating costs. In Aurora County, SD, the allowance for owning one car is $588 per month, with an additional $270 for operating costs in this region, totaling $858 monthly for one vehicle. For two cars, the allowance is $1176 for ownership and $270 for operating costs per car, totaling $1446. These specific allowances are vital for accurately calculating your allowable monthly expenses on Form 433-A.

Qualifying for Currently Not Collectible (CNC) Status in South Dakota

For taxpayers in Aurora County, SD, facing an insurmountable tax debt, 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 disposable income for tax payments. This process begins by filing a detailed Form 433-A, where you report all income, assets, and necessary expenses. For example, a single filer in Aurora County, SD, might have allowable expenses calculated as follows: $1010.0 for housing (using HUD FMR for a 2BR as a reasonable estimate in the absence of an IRS local standard), $812 for food, clothing, and other necessities, $75 for healthcare (under 65), and $858 for transportation (one car ownership and operating costs). This totals $2755.0 in monthly allowable expenses. If your net monthly income is less than or equal to this amount, you may qualify for CNC. IRM 5.16.1 outlines the procedures for placing an account into CNC status, and under IRC §6343, the IRS may release a levy if it creates an economic hardship. While in CNC status, the IRS generally ceases collection efforts, but interest and penalties continue to accrue. Importantly, CNC status does not extend the Collection Statute Expiration Date (CSED), which, under IRC §6502, limits the IRS to 10 years from the assessment date to collect the tax debt.

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Frequently Asked Questions

For Aurora County, SD, the IRS Collection Financial Standards currently list the housing and utilities allowance as 'N/A' for all household sizes. This means the IRS does not have a predefined standard for this specific area. However, taxpayers are still entitled to a reasonable allowance for necessary housing expenses. You should document your actual, reasonable housing costs. For guidance, the HUD FY2025 Fair Market Rent (FMR) for a 2-bedroom residence in Aurora County, SD, is $1010.0 per month. If your actual housing costs are reasonable for your household size and income, the IRS may allow them. If your expenses exceed what an IRS agent might consider standard, you may need to request a deviation as per IRM 5.15.1.10, providing documentation to support the necessity of your higher costs.
To qualify for Currently Not Collectible (CNC) status in South Dakota, you must demonstrate to the IRS that you lack the financial ability to pay your tax debt. This is primarily done by submitting Form 433-A, 'Collection Information Statement for Wage Earners and Self-Employed Individuals,' detailing your income, assets, and all necessary living expenses. The IRS will compare your total monthly income against your allowable expenses, which include National Standards for food, clothing, and personal care (e.g., $812 for a single person), healthcare ($75 per person under 65), and Local Standards for transportation (e.g., $858 for one car). For housing in Aurora County, SD, where no IRS standard exists, your reasonable actual costs (e.g., the HUD FMR of $1010.0 for a 2BR) will be considered. If your total allowable expenses equal or exceed your net monthly income, the IRS may place your account in CNC status under IRM 5.16.1, temporarily halting collection efforts.
The amount the IRS can levy from your paycheck in Aurora County, SD, is determined by specific calculations outlined in IRS Publication 1494 and served via Form 668-W, 'Notice of Levy on Wages, Salary, and Other Income.' The IRS is required to leave you with a minimum amount necessary for living expenses. For 2025, a single taxpayer with zero dependents would have $1096.67 per month exempt from levy. A single taxpayer with one dependent would have $1680.0 per month exempt. These exemptions are based on filing status and the number of dependents claimed. The IRS cannot take the entire paycheck; instead, they levy the amount exceeding these specific exemption figures. South Dakota also generally follows federal Consumer Credit Protection Act (CCPA) limits, which typically restrict garnishments to 25% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum wage, whichever is less. However, IRS levies often take precedence over state garnishments.
If your rent exceeds the IRS standard in Aurora County, SD, it's crucial to understand your options. Since the IRS Collection Financial Standards for housing in Aurora County, SD, are currently listed as 'N/A,' there isn't a specific dollar amount to exceed. Instead, the IRS will evaluate the reasonableness of your actual housing costs. For example, if your rent is $1200 per month and the HUD FY2025 Fair Market Rent for a 2-bedroom in Aurora County, SD, is $1010.0, you would need to justify the difference. You can request a deviation from the standard allowances, as permitted by IRM 5.15.1.10, if your necessary expenses exceed the standard. You must provide documentation (e.g., lease agreements, utility bills) and a clear explanation for why higher expenses are necessary and reasonable given your circumstances. This could include factors like specific housing needs or lack of more affordable options in your area.
The IRS generally has a 10-year period to collect a tax debt, which is known as the Collection Statute Expiration Date (CSED). This 10-year period typically begins from the date the tax was assessed, as stipulated by Internal Revenue Code (IRC) §6502. However, certain events can pause or extend this 10-year collection window. These events include filing for bankruptcy, submitting an Offer in Compromise (Form 656), or requesting a Collection Due Process (CDP) hearing. While being placed in Currently Not Collectible (CNC) status (IRM 5.16.1) temporarily stops active collection efforts, it does not typically extend the CSED. This means that if you remain in CNC status for a significant period, the 10-year statute of limitations may expire, and the debt could become legally uncollectible by the IRS. Understanding your CSED is a critical component of any tax resolution strategy.

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