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IRS Wage Levy & Hardship Standards for Bloomington, IL MSA, Illinois

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

Understanding IRS Collection Standards in Bloomington, IL MSA

When the IRS assesses your ability to pay a tax debt, they utilize a comprehensive financial analysis, often initiated through Form 433-A, 'Collection Information Statement for Wage Earners and Self-Employed Individuals.' This form helps the IRS determine your disposable income by comparing your gross income against a set of allowable living expenses, derived from both National and Local Standards. For a single individual in Bloomington, IL MSA, the IRS allows $812 monthly for food, clothing, and other necessary expenses, based on Bureau of Labor Statistics (BLS) Consumer Expenditure Survey data. While specific local housing standards for Bloomington, IL MSA are not published by the IRS, taxpayers must justify their actual housing costs. If your allowable expenses, including these standards, exceed your income, the IRS may determine that collection would create an economic hardship, potentially leading to a levy release under IRC §6343(a)(1)(D). These critical financial benchmarks are sourced from IRS.gov Collection Financial Standards, drawing data from the BLS and the US Census Bureau.

Bloomington, IL MSA Housing & Utilities Allowance vs. HUD Fair Market Rent

For taxpayers in Bloomington, IL MSA, the IRS Collection Financial Standards do not provide a specific local allowance for housing and utilities. This means the standard is listed as $N/A. However, this absence does not mean you cannot claim your actual, reasonable housing costs. The U.S. Department of Housing & Urban Development (HUD) publishes Fair Market Rent (FMR) data, which indicates a 2-bedroom unit in Bloomington, IL MSA has an FMR of $1260.0 per month for FY2025. If your actual housing expenses exceed the general, unstated IRS allowance (or if no specific local standard exists), you can request a deviation under Internal Revenue Manual (IRM) 5.15.1.10. This provision allows the IRS to consider higher necessary expenses if adequately documented. The fact that HUD FMRs are clearly defined and often exceed the IRS's unstated or non-existent local standards significantly strengthens a taxpayer's argument for such a deviation. Regional Shelter CPI data, which tracks changes in housing costs, is not specifically available for this region from the Bureau of Labor Statistics, further emphasizing the need for individual evaluation.

Food, Healthcare & Transportation Allowances

In addition to housing, the IRS allows specific amounts for other essential living expenses. For food, clothing, and other items, the National Standards dictate a monthly allowance ranging from $812 for a single person to $1983 for a family of four, with an additional $357 for each subsequent person, based on the Bureau of Labor Statistics Consumer Expenditure Survey. Healthcare costs are addressed by the National Standards for Out-of-Pocket Healthcare, allowing $75 per person per month for those under 65, and $153 per person per month for those 65 and over, derived from the Medical Expenditure Panel Survey. For transportation in Bloomington, IL MSA, the IRS Local Standards provide allowances for vehicle ownership and operation. A single car ownership allowance is $588 per month, with an additional $270 per month for operating costs in this region, totaling $858 per month for one vehicle. For two vehicles, the ownership allowance doubles to $1176, making the total $1446 per month when combined with the operating costs, based on BLS data and American Automobile Association operating costs.

Qualifying for Currently Not Collectible (CNC) Status in Illinois

Achieving Currently Not Collectible (CNC) status is a critical relief option for taxpayers in Bloomington, IL MSA facing severe financial hardship. To qualify, you must demonstrate to the IRS that your allowable monthly living expenses equal or exceed your gross monthly income, leaving no disposable income for tax payments. This process typically begins with filing Form 433-A, 'Collection Information Statement for Wage Earners and Self-Employed Individuals,' where you detail all income, assets, and expenses. For a single filer in Bloomington, IL MSA, a hypothetical calculation might include a housing expense of $1260.0 (using the 2BR HUD FMR as a reasonable, documented expense for a deviation), $812 for food/clothing/other, $75 for healthcare (under 65), and $858 for transportation (one car ownership and operating). This totals $3005.0 in allowable expenses. If your gross monthly income is less than or equal to this amount, you may qualify for CNC. IRM 5.16.1 outlines the procedures for placing an account in CNC status, which can lead to a release of levies under IRC §6343. Importantly, while in CNC, the IRS generally ceases active collection efforts, but interest and penalties continue to accrue, and the 10-year Collection Statute Expiration Date (CSED) under IRC §6502 continues to run, meaning CNC status does not extend the time the IRS has to collect.

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Frequently Asked Questions

For Bloomington, IL MSA, the IRS Collection Financial Standards for housing and utilities are listed as $N/A, meaning a specific local standard is not published. However, this does not mean you cannot claim a reasonable housing expense. Taxpayers can utilize the U.S. Department of Housing & Urban Development (HUD) Fair Market Rent (FMR) data as a strong basis for their actual, necessary housing costs. For FY2025, the HUD FMR for a 2-bedroom unit in Bloomington, IL MSA is $1260.0. If your actual, necessary housing expenses exceed any implied or unstated IRS allowance, you can request a deviation under IRM 5.15.1.10, providing documentation to support your higher costs. This approach ensures your unique financial situation is accurately considered when determining your ability to pay.
To qualify for Currently Not Collectible (CNC) status in Illinois, you must demonstrate to the IRS that you lack the financial capacity to pay your tax debt due to a genuine economic hardship. This involves completing and submitting IRS Form 433-A, 'Collection Information Statement for Wage Earners and Self-Employed Individuals,' which details all your income, assets, and monthly living expenses. The IRS will compare your total gross monthly income against your total allowable monthly expenses, which include National Standards for items like food ($812 for a single person) and healthcare ($75 for those under 65), and Local Standards for transportation ($858 for one car ownership and operating in Bloomington, IL MSA). If your allowable expenses equal or exceed your income, leaving no funds available for tax payments, the IRS may place your account in CNC status, effectively pausing active collection efforts as outlined in IRM 5.16.1.
When the IRS issues a wage levy (Form 668-W) in Bloomington, IL MSA, the amount they can seize from your paycheck is determined by specific federal guidelines outlined in IRS Publication 1494. Unlike state wage garnishments that often adhere to a 25% disposable earnings limit or an amount above 30 times the federal minimum wage, IRS levies calculate an exempt amount based on your filing status and number of dependents. For example, a single individual with zero dependents in 2025 can have $1096.67 of their monthly wages exempted from levy. If that same single individual has one dependent, the exempt amount increases to $1680.0 per month. Any earnings above this exempt threshold are subject to the levy. It is crucial to understand these figures, as the IRS will take everything above this exempt amount, potentially causing significant financial strain.
If your rent in Bloomington, IL MSA exceeds the IRS's non-existent or unstated local housing standard, you are not without recourse. As the IRS does not publish a specific housing allowance for this area (listed as $N/A), taxpayers should use their actual, reasonable housing expenses and be prepared to justify them. The HUD Fair Market Rent (FMR) data, which shows a 2-bedroom unit in Bloomington, IL MSA at $1260.0 for FY2025, can serve as compelling evidence for a necessary expense. Under IRM 5.15.1.10, taxpayers can request a deviation from the standard allowances if their actual, necessary expenses are higher. You must provide documentation, such as lease agreements and utility bills, to substantiate these costs. Successfully arguing for a deviation is critical to accurately reflecting your ability to pay and preventing undue financial hardship.
The IRS generally has 10 years from the date a tax is assessed to collect a tax debt, a period known as the Collection Statute Expiration Date (CSED), as mandated by Internal Revenue Code (IRC) §6502. This 10-year clock is critical for taxpayers. While certain actions, such as filing an Offer in Compromise (Form 656) or requesting a Collection Due Process hearing, can temporarily suspend (toll) the CSED, being placed in Currently Not Collectible (CNC) status generally does not extend this 10-year collection window. This means that if your account remains in CNC status for the duration of the remaining CSED, the debt may eventually expire without being collected. Understanding your CSED and strategically managing your tax resolution options, including CNC, is a vital component of any long-term IRS collection strategy, especially when facing enforced collection actions like wage levies (Form 668-W) or bank levies (Form 668-A).

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