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Big Stone County, Minnesota: Navigating IRS Wage Levy & Hardship Status

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

Understanding IRS Collection Standards in Big Stone County

When facing IRS collection actions in Big Stone County, Minnesota, understanding the IRS Collection Financial Standards is crucial for negotiating a resolution. The IRS evaluates a taxpayer's ability to pay using Form 433-A, Collection Information Statement, which details income, expenses, assets, and liabilities. Disposable income is calculated by subtracting allowable National and Local Standards from gross income. For Big Stone County, while specific IRS housing and utilities standards are not published, National Standards cover essential living costs like food, with a single person allowed $812 per month and a family of four allowed $1983. These standards, derived from Bureau of Labor Statistics (BLS) Consumer Expenditure Survey data and US Census Bureau information, are fundamental in determining whether a taxpayer qualifies for economic hardship under IRC §6343(a)(1)(D), potentially leading to a levy release or Currently Not Collectible (CNC) status. This data is regularly updated and available on IRS.gov.

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

For residents of Big Stone County, Minnesota, the IRS does not publish a specific local housing and utilities standard. However, this absence does not mean taxpayers are left without a reasonable allowance. Instead, the IRS will generally consider a taxpayer's actual, necessary expenses. A valuable benchmark for reasonable housing costs in Big Stone County is the US Department of Housing & Urban Development (HUD) FY2025 Fair Market Rent (FMR) data, which indicates a 2-bedroom unit averages $970.0 per month, and a 1-bedroom is $810.0. If a taxpayer's actual housing expenses exceed the typical FMR for their household size, they may need to justify these amounts. Under IRM 5.15.1.10, taxpayers can request a deviation from the standard amounts if their actual, necessary expenses are higher. This is particularly relevant given the lack of a specific IRS standard for this region. While regional Shelter CPI data is not available for Big Stone County from the Bureau of Labor Statistics, using HUD FMR provides a strong basis for demonstrating legitimate housing costs.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS provides specific allowances for other essential living expenses. For food, clothing, and other necessities, National Standards are applied uniformly across the U.S., allowing a single person in Big Stone County, MN, $812 per month, and a family of four $1983 per month. These figures are based on the Bureau of Labor Statistics Consumer Expenditure Survey. Healthcare costs are also accounted for, with a monthly allowance of $75 per person under 65 years old and $153 per person 65 and over, derived from the Medical Expenditure Panel Survey. For transportation, Big Stone County residents are allocated Local Standards, which include both ownership and operating costs. For one car, the ownership cost is $588 per month, and the operating cost for the region is $270 per month, totaling $858. These transportation allowances are based on Bureau of Labor Statistics data and American Automobile Association (AAA) operating cost analyses, ensuring that taxpayers have funds for essential travel.

Qualifying for Currently Not Collectible (CNC) Status in Minnesota

For taxpayers in Big Stone County, Minnesota, who cannot afford to pay their tax debt, Currently Not Collectible (CNC) status offers a temporary reprieve from IRS enforced collection. To qualify, you must demonstrate that your total allowable monthly expenses exceed your monthly income. This is documented on Form 433-A, Collection Information Statement. For example, a single filer in Big Stone County, MN, might have allowable expenses including a reasonable housing cost (e.g., a 1-bedroom HUD FMR of $810.0), a National Standard food allowance of $812, a healthcare allowance of $75 (if under 65), and a transportation allowance of $858 for one car. This totals $810.0 + $812 + $75 + $858 = $2555.0 in monthly expenses. If their income is less than this, they may qualify for CNC. IRM 5.16.1 outlines the procedures for CNC determinations, and qualifying for this status can lead to the release of an IRS levy under IRC §6343. Importantly, while CNC status pauses collection, it does not stop the accrual of penalties and interest, nor does it extend the Collection Statute Expiration Date (CSED) of 10 years as mandated by IRC §6502.

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Frequently Asked Questions

For Big Stone County, Minnesota, the IRS does not publish a specific local housing and utilities standard within its Collection Financial Standards. However, the IRS will consider a taxpayer's actual, necessary housing expenses. A reliable indicator for reasonable housing costs is the HUD FY2025 Fair Market Rent (FMR) data. For instance, the FMR for a 2-bedroom unit in Big Stone County is $970.0 per month, and a 1-bedroom is $810.0. When completing Form 433-A, taxpayers should list their actual housing expenses. If these exceed what the IRS might typically allow, taxpayers can request a deviation, providing documentation to justify their necessary, higher costs, as outlined in IRM 5.15.1.10.
To qualify for Currently Not Collectible (CNC) status in Minnesota, you must demonstrate to the IRS that you lack the ability to pay your tax debt after accounting for your essential living expenses. This process begins by submitting a comprehensive Form 433-A, Collection Information Statement, detailing your income, expenses, and assets. The IRS will compare your income against its National and Local Standards. For example, a single individual's allowable expenses include a National Standard food allowance of $812, a healthcare allowance of $75 (if under 65), and a transportation allowance of $858 for one car. If your total allowable expenses exceed your net disposable income, you may be granted CNC status, as per IRM 5.16.1 procedures. This status provides a temporary halt to collection actions, including releases of levies under IRC §6343.
The amount the IRS can levy from your paycheck in Big Stone County, Minnesota, is determined by IRS Publication 1494, 'Table for Figuring Amount Exempt from Levy,' for 2025. This table specifies a portion of your wages that is exempt from levy, based on your filing status and number of dependents. For example, a single taxpayer with zero dependents has $1096.67 per month exempt from levy. A single taxpayer with one dependent has $1680.0 per month exempt. The IRS issues a wage levy using Form 668-W, Notice of Levy on Wages, Salary, and Other Income, which instructs your employer to send the non-exempt portion of your wages directly to the IRS. State wage garnishment laws, while present, typically do not apply to federal tax levies, as federal law (IRC §6331) generally preempts state law in this area.
Since the IRS does not publish a specific housing standard for Big Stone County, Minnesota, taxpayers are not bound by a fixed IRS allowance for rent. Instead, the IRS will consider your actual, necessary housing expenses. The HUD FY2025 Fair Market Rent (FMR) data, such as $970.0 for a 2-bedroom unit or $810.0 for a 1-bedroom, serves as a strong benchmark for reasonable costs. If your actual rent exceeds these FMR figures, you can still justify these expenses to the IRS on Form 433-A. Under IRM 5.15.1.10, the IRS allows for deviations from standard amounts when a taxpayer can demonstrate that their actual, necessary expenses are higher than the published (or implied, in this case) standards. Providing documentation for your rent and utilities is key to making a successful argument for these higher expenses.
The IRS generally has 10 years to collect a tax debt, a period known as the Collection Statute Expiration Date (CSED). This 10-year period is established by Internal Revenue Code (IRC) §6502 and typically begins from the date the tax was assessed. While certain actions, like filing for bankruptcy or an Offer in Compromise (Form 656), can pause or extend the CSED, obtaining Currently Not Collectible (CNC) status does not extend this 10-year collection window. If your tax debt remains unpaid when the CSED expires, the IRS is legally prohibited from collecting it. Therefore, pursuing CNC status, as outlined in IRM 5.16.1, can be an effective strategy to manage an unpayable tax debt, allowing the CSED to run its course without aggressive enforcement actions like wage levies (Form 668-W) or bank levies (Form 668-A).

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