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Billings County, North Dakota IRS Wage Levy & Hardship Assistance

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

Understanding IRS Collection Standards in Billings County, ND

For taxpayers in Billings County, North Dakota facing IRS collection actions, understanding the IRS Collection Financial Standards is crucial for navigating potential wage levies (Form 668-W) or bank levies (Form 668-A). The IRS uses these standards, outlined on Form 433-A, Collection Information Statement, to determine a taxpayer's ability to pay, ultimately calculating their disposable income. These standards are derived from comprehensive data provided by IRS.gov, the Bureau of Labor Statistics (BLS), and the US Census Bureau. While the IRS National Standards allow a single individual in Billings County $812 monthly for food, clothing, and other necessities, specific local housing and utilities standards are not provided for this region. This absence means taxpayers must often propose a deviation to the IRS for housing expenses. The goal is to demonstrate economic hardship under IRC §6343(a)(1)(D), preventing aggressive collection actions that would leave you unable to meet basic living needs.

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

For residents of Billings County, North Dakota, the IRS Collection Financial Standards do not specify a local housing and utilities allowance. This necessitates a strategic approach when substantiating your necessary living expenses. Instead, taxpayers should reference the U.S. Department of Housing and Urban Development (HUD) Fair Market Rent (FMR) data for the area. For example, the HUD FY2025 FMR for Billings County is $850.0 for a studio apartment, $860.0 for a 1-bedroom, and $1050.0 for a 2-bedroom. If your actual housing expenses align with or exceed these FMR figures, it provides a strong basis for requesting a deviation from the standard, as permitted under Internal Revenue Manual (IRM) 5.15.1.10. This deviation argument is critical, especially since regional shelter CPI data is not available for Billings County, making FMR a primary benchmark for demonstrating reasonable and necessary housing costs to the IRS.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS Collection Financial Standards provide specific allowances for other essential living expenses in Billings County, North Dakota. For food, clothing, and other necessities, the IRS National Standards, based on the Bureau of Labor Statistics Consumer Expenditure Survey, allocate $812 per month for a single individual, increasing to $1478 for a two-person household, and $1983 for a four-person household. Healthcare is another critical allowance, with the IRS permitting $75 per month for individuals under 65 and $153 for those 65 and over, per person. For transportation, essential for many in Billings County, the IRS Local Standards, derived from BLS data and American Automobile Association (AAA) operating costs, allow $588 per month for the ownership costs of one car and $270 for operating costs in the region, totaling $858 per month for one vehicle. These allowances are vital for calculating your ability to pay and negotiating with the IRS.

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

Achieving Currently Not Collectible (CNC) status in North Dakota, particularly for residents of Billings County, means the IRS has determined you lack the financial ability to pay your tax debt. This designation, guided by Internal Revenue Manual (IRM) 5.16.1, effectively halts enforced collection actions like wage levies (Form 668-W) or bank levies (Form 668-A). To qualify, you must submit a comprehensive Form 433-A, Collection Information Statement, detailing all your income, expenses, assets, and liabilities. The IRS will compare your total allowable monthly expenses against your income. For a single filer in Billings County, for instance, allowable expenses might include a housing allowance of $1050.0 (based on a 2BR HUD FMR as a reasonable, substantiated deviation), $812 for food/clothing/other, $75 for healthcare (under 65), and $858 for transportation (one car ownership and operating). If your total allowable expenses exceed your net disposable income, you may qualify for CNC status. While CNC stops active collection, it does not erase the debt, nor does it extend the Collection Statute Expiration Date (CSED) under IRC §6502, which is generally 10 years from the assessment date. However, it can provide crucial relief under IRC §6343 by releasing levies and preventing future ones due to economic hardship.

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Frequently Asked Questions

For Billings County, North Dakota, the IRS Collection Financial Standards do not specify a local housing and utilities allowance (listed as $N/A). Instead, taxpayers must substantiate their actual, necessary housing expenses. A critical reference point is the HUD FY2025 Fair Market Rent (FMR) data, which indicates $850.0 for a studio, $860.0 for a 1-bedroom, and $1050.0 for a 2-bedroom apartment monthly. If your rent aligns with or is below these figures, you can present this to the IRS. If your housing costs exceed these amounts, you can request a deviation under IRM 5.15.1.10, providing documentation like lease agreements and utility bills to demonstrate your essential living costs.
To qualify for Currently Not Collectible (CNC) status in North Dakota, you must demonstrate to the IRS that you lack the financial ability to pay your tax debt. This process begins by filing a detailed Form 433-A, Collection Information Statement, which outlines your income, assets, and allowable expenses according to IRS National and Local Standards. For example, a single person's allowable expenses would include $812 for food/clothing/other, $75 for healthcare (if under 65), and $858 for transportation. If your reasonable and necessary living expenses, including a substantiated housing cost (e.g., $1050.0 for a 2BR based on HUD FMR for Billings County), meet or exceed your monthly income, the IRS may place your account in CNC status as per IRM 5.16.1. This designation temporarily halts enforced collection actions under IRC §6343(a)(1)(D) due to economic hardship.
If the IRS issues a wage levy (Form 668-W) in Billings County, North Dakota, the amount they can take from your paycheck is determined by IRS Publication 1494, Table for Figuring Amount Exempt from Levy. 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 individual with zero dependents will have $1096.67 per month exempted from their wages. A married individual filing jointly with one dependent will have $2286.67 per month exempted. Any wages above these exempt amounts can be levied. While North Dakota follows federal CCPA limits (25% of disposable earnings or the amount above 30 times the federal minimum wage), the IRS's levy power under federal law generally supersedes state garnishment limits, making Publication 1494 the primary guide.
Since the IRS Collection Financial Standards do not provide a specific housing allowance for Billings County, North Dakota ($N/A), your actual rent can be a significant factor. If your rent, for example, is $1050.0 for a 2-bedroom apartment, which aligns with the HUD FY2025 Fair Market Rent, this is a reasonable and defensible expense. If your rent exceeds what the IRS might consider standard, you can request a deviation under Internal Revenue Manual (IRM) 5.15.1.10. To do so, you must provide clear documentation, such as your lease agreement, utility bills, and a written explanation demonstrating why your housing costs are necessary and reasonable for your household size and circumstances. This is crucial for accurately reflecting your true ability to pay and preventing undue financial hardship.
The IRS generally has 10 years to collect a tax debt, a period known as the Collection Statute Expiration Date (CSED), as outlined in Internal Revenue Code (IRC) §6502. This 10-year clock typically starts from the date your tax liability was assessed. While being placed in Currently Not Collectible (CNC) status in North Dakota temporarily halts active collection efforts, it does not extend the CSED. However, certain actions can extend the CSED, such as filing for bankruptcy, signing an Offer in Compromise (Form 656), or requesting a Collection Due Process hearing. Understanding your CSED is a critical component of any tax resolution strategy, as reaching this date means the IRS can no longer legally pursue collection of the debt, offering a potential path to full resolution.

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