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Big Horn County, Wyoming: IRS Wage Levy, Bank Levy, and Hardship Status

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

Understanding IRS Collection Standards in Big Horn County

When the IRS assesses your ability to pay a tax debt, they utilize a detailed financial analysis based on Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals. This process determines your disposable income by comparing your gross income against a set of IRS-approved National and Local Standards for necessary living expenses. For Big Horn County, Wyoming residents, understanding these standards is critical, especially when facing potential enforced collection actions like a wage levy (Form 668-W) or bank levy (Form 668-A). While specific local housing allowances are not available from IRS.gov for Big Horn County, the National Standards provide a baseline, such as $812 per month for a single individual's food, clothing, and other necessary expenses. If the IRS determines that collecting the tax would create an economic hardship, defined under IRC §6343(a)(1)(D), they may release a levy or place your account into Currently Not Collectible (CNC) status. These standards are meticulously derived from public data sources including the Bureau of Labor Statistics (BLS) Consumer Expenditure Survey, US Census Bureau American Community Survey, and Medical Expenditure Panel Survey.

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

For residents of Big Horn County, Wyoming, the IRS Collection Financial Standards currently do not specify a localized housing and utilities allowance (listed as $N/A). This absence means the IRS would typically consider your actual necessary housing expenses. However, the U.S. Department of Housing and Urban Development (HUD) provides Fair Market Rent (FMR) data, which can serve as a powerful benchmark for what constitutes a reasonable housing expense in your area. For instance, the HUD FY2025 Fair Market Rent for a 2-bedroom unit in Big Horn County is $960.0 per month. If your actual housing costs exceed the standard allowed, or in this case, a reasonable local benchmark like HUD FMR, you can argue for a deviation from the standard, as outlined in Internal Revenue Manual (IRM) 5.15.1.10. This is especially relevant if your rent is higher than $960.0, strengthening your case for a higher allowable expense. While regional shelter Consumer Price Index (CPI) data is not available for Big Horn County, documenting your actual, reasonable housing costs is crucial when submitting Form 433-A to the IRS.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS Collection Financial Standards provide specific allowances for essential living expenses. For food, clothing, and other necessities, the National Standards allow $812 monthly for a single person, escalating to $1983 for a family of four. This standard, based on the Bureau of Labor Statistics Consumer Expenditure Survey, includes a $449 allocation for food, $99 for apparel, and $45 for personal care for a single individual. Healthcare is also covered by National Standards, with an allowance of $75 per month for individuals under 65 and $153 per month for those 65 and over, per person, derived from the Medical Expenditure Panel Survey. For transportation in Big Horn County, the IRS Local Standards (based on BLS data and AAA operating costs) provide an allowance of $588 per month for the ownership of one car and an additional $270 per month for operating costs in this region, totaling $858 monthly for one vehicle. If a second vehicle is necessary, the ownership allowance increases to $1176, making the total $1446 for two cars.

Qualifying for Currently Not Collectible (CNC) Status in Wyoming

Achieving Currently Not Collectible (CNC) status in Wyoming signifies that the IRS has determined you lack the financial capacity to pay your tax debt without experiencing economic hardship. To qualify, you must file Form 433-A, providing a comprehensive snapshot of your income, assets, and expenses. The IRS will then compare your total allowable monthly expenses against your net monthly income. For a single filer in Big Horn County, a typical calculation might include a reasonable housing allowance (using the HUD FMR for a 2-bedroom as a benchmark, $960.0), plus the National Standard for food and other necessities ($812), out-of-pocket healthcare ($75 for someone under 65), and local transportation costs ($858 for one car). This totals $2705.0 in essential monthly expenses. If your income does not exceed this amount, you may qualify for CNC status under IRM 5.16.1. When an account is placed in CNC, the IRS will typically release any active levies, as stipulated by IRC §6343. Importantly, while CNC status temporarily halts active collection, it does not stop the 10-year Collection Statute Expiration Date (CSED) under IRC §6502 from running, meaning the IRS's time to collect is not extended by this status.

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Frequently Asked Questions

For Big Horn County, Wyoming, the IRS Collection Financial Standards for housing and utilities are currently listed as N/A, meaning there isn't a pre-defined local standard. In such cases, the IRS will evaluate your actual, necessary housing expenses. However, a useful benchmark is the HUD FY2025 Fair Market Rent (FMR) for the area, which indicates $960.0 for a 2-bedroom unit. If your actual rent or mortgage payment is reasonable and necessary, the IRS may allow it. When preparing Form 433-A, accurately document your housing costs, as you may need to argue for a deviation if your expenses are higher than typical local averages, referencing IRM 5.15.1.10.
To qualify for Currently Not Collectible (CNC) status in Wyoming, you must demonstrate to the IRS that you lack the financial ability to pay your tax debt without experiencing economic hardship. This involves submitting Form 433-A, Collection Information Statement, detailing all your income, assets, and expenses. The IRS will compare your net disposable income against their National and Local Standards. For example, a single person in Big Horn County might have allowable expenses including $812 for food, clothing, and other necessities, $75 for healthcare (under 65), and $858 for one car's transportation. If your total allowable expenses exceed your monthly income, the IRS may place your account in CNC status, as outlined in IRM 5.16.1.
When the IRS issues a wage levy (Form 668-W) in Big Horn County, they cannot take your entire paycheck. The amount exempt from levy is determined by your filing status and the number of dependents you claim, based on IRS Publication 1494. For 2025, a single taxpayer with zero dependents has a monthly exemption of $1096.67. If that same single taxpayer claims one dependent, their monthly exemption increases to $1680.0. For married individuals filing jointly with one dependent, the exemption is $2286.67 per month. Only the amount of disposable earnings above these thresholds can be levied. State wage garnishment laws in Wyoming follow federal CCPA limits, which are either 25% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum wage, whichever is less.
Since the IRS does not provide a specific local housing standard for Big Horn County, Wyoming (listed as N/A), your actual, reasonable housing expenses will be considered. If your rent or mortgage payment exceeds the HUD FY2025 Fair Market Rent for the area, which is $960.0 for a 2-bedroom unit, it's crucial to document why these expenses are necessary and reasonable for your circumstances. The Internal Revenue Manual (IRM) 5.15.1.10 allows for deviations from National or Local Standards if a taxpayer can demonstrate that a higher expense is necessary and reasonable. Providing clear documentation, such as lease agreements or mortgage statements, is vital to support your claim for a higher allowable housing expense when completing Form 433-A.
The IRS generally has a 10-year period to collect a tax debt, known as the Collection Statute Expiration Date (CSED), established by Internal Revenue Code (IRC) §6502. This 10-year period typically begins from the date the tax was assessed. It's crucial to understand that while certain actions can pause or extend this period (like filing for bankruptcy or an Offer in Compromise), being placed in Currently Not Collectible (CNC) status (IRM 5.16.1) does NOT extend the CSED. This means that if your account is in CNC status, the 10-year clock continues to run. Strategic management of your collection status, including seeking CNC if appropriate, can be a vital component of your overall tax resolution strategy.

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