IRS Levy Hardship Analyzer ← Free Analysis Tool

Big Horn County, Montana IRS Wage Levy & Hardship Assistance

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

Understanding IRS Collection Standards in Big Horn County

For taxpayers in Big Horn County, Montana, facing IRS collection actions, understanding the IRS Collection Financial Standards is crucial. These standards, published on IRS.gov and derived from U.S. Census Bureau American Community Survey and Bureau of Labor Statistics data, determine your ability to pay. The IRS uses Form 433-A, Collection Information Statement, to calculate your disposable income by subtracting allowable living expenses from your gross income. While specific housing and utilities standards are not provided for Big Horn County, the National Standards allow a single person $812 monthly for Food, Clothing & Other, increasing to $1983 for a family of four. If your allowable expenses exceed your income, you may qualify for economic hardship, as defined under Internal Revenue Code (IRC) §6343(a)(1)(D), potentially leading to a levy release or Currently Not Collectible (CNC) status. This data-driven approach ensures a fair, albeit stringent, assessment of your financial situation.

Big Horn County Housing & Utilities Allowance vs. HUD Fair Market Rent

Unfortunately, the IRS Collection Financial Standards do not provide a specific housing and utilities allowance for Big Horn County, MT, listing it as 'N/A'. This means taxpayers cannot rely on a pre-determined IRS figure for their housing costs. However, the U.S. Department of Housing and Urban Development (HUD) provides Fair Market Rent (FMR) data, which is highly relevant. For Big Horn County, the FY2025 HUD FMR for a 2-bedroom residence is $1550.0, with a studio at $1170.0 and a 1-bedroom at $1230.0. If your actual housing expenses exceed the general standards or if no standard is provided, Internal Revenue Manual (IRM) 5.15.1.10 allows for a deviation from the national or local standards, provided you can substantiate the necessity and reasonableness of your expenses. Given the 'N/A' status for Big Horn County, presenting your actual rent, especially if it aligns with or exceeds HUD FMRs, is vital to argue for a higher allowable expense. As regional shelter CPI data is not available for this specific region, the HUD FMR becomes an even more critical benchmark.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS allows specific amounts for other essential living expenses. Under the National Standards, a single person in Big Horn County is allowed $812 per month for Food, Clothing & Other, derived from the Bureau of Labor Statistics Consumer Expenditure Survey. This breaks down to $449 for food, $44 for housekeeping supplies, $99 for apparel and services, $45 for personal care products, and $175 for miscellaneous items. For a family of two, this increases to $1478, and for four people, it's $1983, with an additional $357 for each extra person. Healthcare expenses are also standardized: $75 per person under 65 and $153 per person 65 and over, based on the Medical Expenditure Panel Survey. For transportation, Big Horn County residents are allowed $588 per month for one owned car (ownership costs) and $270 for operating costs (gas, maintenance) within the region, totaling $858 monthly for one vehicle, according to IRS Local Standards for Transportation, which incorporates BLS data and American Automobile Association operating costs. Two owned cars allow for $1176 in ownership costs, totaling $1446 with operating costs.

Qualifying for Currently Not Collectible (CNC) Status in Montana

Achieving Currently Not Collectible (CNC) status is a critical relief option for Big Horn County taxpayers facing severe financial hardship. To qualify, you must submit a detailed financial disclosure on Form 433-A, Collection Information Statement, to the IRS. The IRS will compare your total monthly income against your total allowable monthly expenses, determined by the National and Local Collection Financial Standards. For example, a single filer in Big Horn County might demonstrate a monthly expense total combining a realistic housing cost (e.g., a studio at $1170.0 based on HUD FMR), $812 for food, clothing, and other expenses, $75 for healthcare (under 65), and $858 for one car transportation, totaling $2915.0. If your income does not exceed this total, you could qualify for CNC. Internal Revenue Manual (IRM) 5.16.1 outlines the procedures for CNC status, which means the IRS will temporarily cease collection efforts. Importantly, while CNC status provides relief, it does not extend the Collection Statute Expiration Date (CSED), which is generally 10 years from the date of tax assessment, as stipulated by IRC §6502. The IRS will release any existing levies, such as a wage levy (Form 668-W) or bank levy (Form 668-A), once CNC status is approved, as per IRC §6343.

🏛️ Free IRS Levy Hardship Analysis

Are you facing an IRS wage levy or struggling with tax debt in Big Horn County, MT? Use our free IRS Levy Hardship Analyzer tool. Simply enter your Big Horn County, Montana ZIP code to see how IRS standards apply to your unique situation and explore your options for relief.

Analyze Your Situation

Frequently Asked Questions

For Big Horn County, Montana, the IRS Collection Financial Standards currently list the housing and utilities allowance as 'N/A.' This means there isn't a pre-set amount the IRS automatically allows. However, taxpayers can substantiate their actual necessary expenses. The U.S. Department of Housing and Urban Development (HUD) provides Fair Market Rent (FMR) data, which can serve as a strong benchmark. For FY2025, the HUD FMR for a 1-bedroom residence in Big Horn County is $1230.0, and a 2-bedroom is $1550.0. When submitting Form 433-A, you should include your actual housing costs and be prepared to explain why they are necessary and reasonable, especially if they align with or exceed these HUD FMR figures, as outlined in IRM 5.15.1.10 for standard deviations.
To qualify for Currently Not Collectible (CNC) status in Montana, you must demonstrate to the IRS that you cannot afford to pay your tax debt after covering your necessary living expenses. This process begins by filing Form 433-A, Collection Information Statement, which details your income, assets, and expenses. The IRS will compare your reported income with allowable expenses based on National and Local Collection Financial Standards. For instance, a single individual's allowable expenses would include $812 for food, clothing, and other items, $75 for healthcare (if under 65), and $858 for one car transportation in Big Horn County. If your total allowable expenses, including a reasonable housing cost (e.g., using HUD FMR data for Big Horn County), exceed your monthly income, the IRS may place your account in CNC status, as detailed in IRM 5.16.1.1.
When the IRS issues a wage levy (Form 668-W, Notice of Levy on Wages, Salary, and Other Income) in Big Horn County, Montana, the amount taken is not a flat percentage but is determined by a specific calculation outlined in IRS Publication 1494. This publication provides tables for figuring the amount exempt from levy based on your filing status and number of dependents. For 2025, a single taxpayer with zero dependents has a monthly exempt amount of $1096.67. A single taxpayer with one dependent has $1680.0 exempt monthly. For married filing jointly with one dependent, the exempt amount is $2286.67 per month. The IRS will levy any wages above this exempt amount. This calculation ensures that a portion of your income remains for basic living expenses, preventing complete financial destitution.
If your rent in Big Horn County, Montana, exceeds the IRS standard, you are not without recourse. Since the IRS Collection Financial Standards list the housing allowance for Big Horn County as 'N/A,' your actual, reasonable housing expenses become the primary consideration. The U.S. Department of Housing and Urban Development (HUD) Fair Market Rent (FMR) data can be a powerful tool for substantiation; for example, a 2-bedroom FMR in Big Horn County for FY2025 is $1550.0. Under Internal Revenue Manual (IRM) 5.15.1.10, taxpayers can request a deviation from the standard amounts if they can demonstrate that their actual expenses are necessary and reasonable. You must provide documentation, such as a lease agreement and utility bills, to support your claim on Form 433-A. This deviation process is critical for ensuring your unique financial situation is accurately considered.
The IRS generally has 10 years to collect a tax debt, a period known as the Collection Statute Expiration Date (CSED), established under Internal Revenue Code (IRC) §6502. This 10-year clock typically starts from the date your tax was assessed. It's crucial to understand that certain actions can extend this period, such as filing for bankruptcy, submitting an Offer in Compromise (Form 656), or requesting a Collection Due Process hearing. However, obtaining Currently Not Collectible (CNC) status (IRM 5.16.1) does NOT extend the CSED. This makes CNC a strategic option for taxpayers in Big Horn County, Montana, facing financial hardship, as it pauses collection efforts without giving the IRS more time to pursue the debt. Once the CSED expires, the IRS is legally barred from collecting the tax debt.

Sources & Methodology