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IRS Wage Levy & Hardship Relief in Bennett County, South Dakota

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

Understanding IRS Collection Standards in Bennett County

For taxpayers in Bennett County, South Dakota, facing IRS collection actions, understanding the IRS Collection Financial Standards is crucial. These standards, utilized when evaluating your ability to pay through Form 433-A, Collection Information Statement, determine your allowable monthly living expenses. The IRS calculates your disposable income by comparing your gross income against these National and Local Standards. For instance, a single individual in Bennett County is allowed $812 monthly for food, clothing, and other necessities, based on the IRS National Standards derived from Bureau of Labor Statistics data. While specific local housing allowances are not provided for Bennett County by the IRS, the Service will consider actual necessary expenses, especially if they demonstrate economic hardship as outlined in IRC §6343(a)(1)(D). These critical financial benchmarks are compiled from authoritative sources like IRS.gov, the Bureau of Labor Statistics, and the U.S. Census Bureau, ensuring a data-driven assessment of your financial situation.

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

The IRS Collection Financial Standards currently do not provide a specific housing and utilities allowance for Bennett County, South Dakota, listing the amount as $N/A. This absence means the IRS will evaluate your actual necessary housing expenses. For comparison, the U.S. Department of Housing and Urban Development (HUD) reports the Fiscal Year 2025 Fair Market Rent (FMR) for a 2-bedroom unit in Bennett County at $1170.0 per month. If your actual rent or mortgage payment significantly exceeds the national average or the lack of an IRS local standard creates an undue burden, you may be able to argue for a deviation from standard allowances. As per Internal Revenue Manual (IRM) 5.15.1.10, 'Deviation from National and Local Standards,' taxpayers can request to be allowed higher actual expenses if they are necessary and reasonable. The fact that the Bureau of Labor Statistics regional shelter CPI data is not available for this specific region further underscores the need for individual expense evaluation rather than relying on generalized data.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS provides specific allowances for other essential living costs. For food, clothing, and other items, the IRS National Standards allow a single individual in Bennett County $812 per month, while a family of four can claim $1983, based on the Bureau of Labor Statistics Consumer Expenditure Survey. Healthcare costs are addressed by National Standards for Out-of-Pocket Healthcare, allowing $75 per person under 65 and $153 per person 65 and over monthly, derived from the Medical Expenditure Panel Survey. Transportation is a significant expense, and for Bennett County, the IRS Local Standards for Transportation allow $588 per month for one owned car (including car payment, insurance, maintenance) and an additional $270 per month for operating costs (fuel, public transportation), totaling $858 for one vehicle. These figures are based on Bureau of Labor Statistics data and American Automobile Association operating costs, ensuring a realistic assessment of your monthly transportation needs.

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

For taxpayers in Bennett County, South Dakota, who demonstrate an inability to pay their tax debt without experiencing economic hardship, Currently Not Collectible (CNC) status offers crucial relief. To qualify, you must file Form 433-A, Collection Information Statement, detailing your income, assets, and allowable expenses. The IRS will compare your total monthly income against your total allowable expenses, using the standards discussed previously. For example, a single filer in Bennett County might have allowable expenses including $1170.0 for housing (using HUD FMR for a 2BR as a proxy for actual costs), $812 for food, $75 for healthcare (under 65), and $858 for transportation, totaling $2915.0. If your income does not exceed this total, you may qualify for CNC. As per IRM 5.16.1, CNC status means the IRS will temporarily stop active collection efforts. While in CNC, the Collection Statute Expiration Date (CSED) under IRC §6502 (generally 10 years from assessment) continues to run, meaning CNC status does not extend the collection window. Qualifying for CNC can also lead to the release of an existing levy, as stipulated by IRC §6343.

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Frequently Asked Questions

As of 2025, the IRS Collection Financial Standards do not provide a specific housing and utilities allowance for Bennett County, South Dakota, listing it as $N/A. This means the IRS will evaluate your actual, reasonable, and necessary housing expenses. For context, the U.S. Department of Housing and Urban Development (HUD) reports the Fair Market Rent (FMR) for a 2-bedroom unit in Bennett County as $1170.0 per month for FY2025. When submitting your Form 433-A, Collection Information Statement, you should document your actual housing costs. If these costs exceed what the IRS might typically allow in other areas, you can argue for a deviation based on IRM 5.15.1.10, emphasizing the local housing market reality.
To qualify for Currently Not Collectible (CNC) status in South Dakota, you must demonstrate to the IRS that you cannot pay your tax debt without experiencing economic hardship. This process begins by providing a comprehensive financial disclosure on IRS Form 433-A, Collection Information Statement. The IRS will analyze your monthly income, assets, and allowable living expenses, which are determined by National and Local Collection Financial Standards. For instance, a single individual in Bennett County might have allowable expenses totaling approximately $2915.0 (e.g., $1170.0 for housing, $812 for food, $75 for healthcare, $858 for transportation). If your net disposable income is zero or negative after accounting for these standards, the IRS may place your account in CNC status, temporarily halting active collection efforts as per IRM 5.16.1. This status is reviewed periodically, but it does not stop interest and penalties from accruing.
When the IRS issues a wage levy (Form 668-W) in Bennett County, South Dakota, the amount taken from your paycheck is not a fixed percentage but is calculated based on your filing status and the number of dependents you claim. The IRS determines a specific exempt amount that must be left to you for living expenses. According to IRS Publication 1494 for 2025, a single individual with 0 dependents has $1096.67 per month exempt from levy. If that same single individual claims 1 dependent, the exempt amount increases to $1680.0 per month. For a married individual filing jointly with 1 dependent, the exempt amount is $2286.67 per month. Any earnings above this exempt threshold are subject to the levy. It's crucial to understand these precise figures to assess the impact of a wage levy and to ensure the IRS is not taking more than legally allowed.
If your rent in Bennett County, South Dakota, exceeds the IRS Collection Financial Standard, or more specifically, the $N/A designation for housing, you have a strong basis to request a deviation. Since the IRS does not provide a specific local housing standard for Bennett County, your actual, reasonable, and necessary housing expenses must be considered. For example, the HUD Fair Market Rent for a 2-bedroom unit in Bennett County is $1170.0 per month for FY2025. If your rent is at or above this amount, you can present this evidence on Form 433-A. Internal Revenue Manual (IRM) 5.15.1.10 explicitly allows for deviations from National and Local Standards when a taxpayer can demonstrate that their actual expenses are necessary and reasonable for their particular circumstances, thereby preventing economic hardship. Documenting your rent and utility bills thoroughly is key to a successful deviation request.
The IRS generally has 10 years to collect a tax debt, a period known as the Collection Statute Expiration Date (CSED), as defined by Internal Revenue Code (IRC) §6502. This 10-year clock typically starts from the date your tax was assessed. It's vital to understand that certain events can pause or extend this collection period. For instance, filing for bankruptcy, requesting a Collection Due Process (CDP) hearing, or submitting an Offer in Compromise (Form 656) can temporarily suspend the CSED. However, being placed in Currently Not Collectible (CNC) status does not extend the CSED; the 10-year collection window continues to run while your account is in CNC. Therefore, pursuing CNC status can be a strategic move to run out the collection statute, effectively eliminating the debt without payment if the IRS cannot collect before the CSED expires.

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