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Boulder, Colorado IRS Wage Levy & Hardship Assistance

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

Understanding IRS Collection Standards in Boulder, CO MSA

When facing IRS enforced collection actions in Boulder, Colorado, understanding the IRS Collection Financial Standards is paramount. The IRS uses these standards, outlined on Form 433-A (Collection Information Statement for Wage Earners and Self-Employed Individuals), to determine a taxpayer's ability to pay. These standards consist of National and Local Allowances, which dictate how much income the IRS believes you need for basic living expenses before calculating your disposable income. For instance, a single individual in Boulder, CO MSA is allocated $812 monthly for Food, Clothing & Other expenses based on IRS National Standards derived from Bureau of Labor Statistics Consumer Expenditure Survey data. While specific IRS Local Standards for Housing & Utilities are not provided for the Boulder, CO MSA in the current data, taxpayers must justify their actual necessary housing costs. If your total allowable expenses exceed your income, you may qualify for economic hardship relief under IRC §6343(a)(1)(D), preventing or releasing a levy. These standards are meticulously compiled from sources like IRS.gov, the Bureau of Labor Statistics (BLS), and US Census Bureau data.

Boulder, CO MSA Housing & Utilities Allowance vs. HUD Fair Market Rent

For Boulder, CO MSA, the IRS Collection Financial Standards data does not provide a specific Local Standard for Housing & Utilities. This means taxpayers in Boulder, Colorado must substantiate their actual, necessary housing expenses. This situation often allows taxpayers to claim their actual rent or mortgage payments, especially when they align with or are below the local market rates. For context, the HUD FY2025 Fair Market Rent data for Boulder, CO MSA shows a 2-bedroom unit at $2260.0 per month. If your actual housing costs exceed what the IRS might typically allow in other regions with specific standards, you can argue for a deviation from the standard, a process detailed in IRM 5.15.1.10 (Financial Analysis Handbook, National Standards). Documenting that your rent aligns with HUD FMR strengthens your case for necessary expenses. Unfortunately, specific regional shelter CPI data for Boulder, CO MSA is not available to show year-over-year changes, but local market conditions are often reflected in HUD FMR.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS allows specific amounts for other essential living expenses. For Food, Clothing & Other, National Standards dictate monthly allowances: $812 for a 1-person household, $1478 for 2-persons, $1697 for 3-persons, and $1983 for 4-persons, with an additional $357 for each subsequent person. These figures are based on the Bureau of Labor Statistics Consumer Expenditure Survey. Healthcare is another critical allowance; per person, the IRS allows $75 monthly for individuals under 65 and $153 for those 65 and over, derived from the Medical Expenditure Panel Survey. For transportation in the Boulder, CO MSA region, the IRS Local Standards permit $588 for ownership of one car and $270 for operating costs, totaling $858 per month for one vehicle. For two vehicles, the allowance is $1176 for ownership and $270 for operating costs, totaling $1446. These transportation figures are based on Bureau of Labor Statistics data and American Automobile Association operating costs, reflecting regional rates.

Qualifying for Currently Not Collectible (CNC) Status in Colorado

Achieving Currently Not Collectible (CNC) status in Colorado means the IRS has determined you lack the financial ability to pay your tax debt. To qualify, you must submit a detailed financial statement, typically Form 433-A, to demonstrate that your necessary monthly expenses equal or exceed your gross monthly income. For a single filer in Boulder, CO MSA, a potential calculation for total allowable expenses might include a justifiable housing expense such as the 2-bedroom HUD FMR of $2260.0, plus $812 for Food, Clothing & Other, $75 for healthcare (under 65), and $858 for one-car transportation. This sums to $4005.0 in recognized monthly expenses. If your income does not exceed this amount, the IRS may place your account in CNC. This status is not forgiveness but a temporary reprieve, preventing enforcement actions like wage levies (Form 668-W) or bank levies (Form 668-A), as per IRM 5.16.1 (Currently Not Collectible). Importantly, while in CNC, the 10-year Collection Statute Expiration Date (CSED) under IRC §6502 continues to run, meaning the IRS's time to collect does not extend due to CNC status.

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Are you facing an IRS wage levy (Form 668-W) or bank levy (Form 668-A) in Boulder, CO MSA? Our free IRS Levy Hardship Analyzer tool can help you determine your eligibility for Currently Not Collectible (CNC) status. Enter your Boulder, CO MSA ZIP code to get an instant assessment based on current IRS Collection Financial Standards.

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Frequently Asked Questions

For Boulder, CO MSA, the IRS Collection Financial Standards for Housing & Utilities are listed as 'N/A' in the current data. This means the IRS does not provide a predetermined standard amount for this region. Instead, taxpayers must document and justify their actual, necessary housing expenses. For guidance, the HUD FY2025 Fair Market Rent for a 2-bedroom unit in Boulder, CO MSA is $2260.0. If your actual housing costs are reasonable and essential, the IRS may allow them. You may need to argue for a deviation from standard procedures, as outlined in IRM 5.15.1.10, by presenting compelling evidence of your necessary expenses.
To qualify for Currently Not Collectible (CNC) status in Colorado, you must demonstrate to the IRS that your essential monthly living expenses equal or exceed your monthly income, leaving no disposable income for tax debt payments. This is primarily done by submitting IRS Form 433-A, a detailed financial statement. The IRS will evaluate your income against allowable expenses, which include National Standards ($812 for a single person's Food, Clothing & Other) and Local Standards (e.g., $858 for one-car transportation in Boulder, CO MSA). If the IRS confirms you cannot pay, your account may be placed in CNC status under IRM 5.16.1, temporarily stopping collection efforts like those initiated by Forms 668-W or 668-A.
The amount the IRS can levy from your paycheck in Boulder, CO MSA is determined by IRS Publication 1494 (2025), 'Table for Figuring Amount Exempt from Levy.' This table outlines the portion of your wages that is exempt from a Form 668-W (Notice of Levy on Wages, Salary, and Other Income). For a single individual with zero dependents, the exempt amount is $1096.67 per month. For a single individual with one dependent, it rises to $1680.0 per month. Any income above these amounts is subject to levy. Colorado also follows federal Consumer Credit Protection Act (CCPA) limits, which cap garnishments at 25% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum wage, whichever is less. The IRS levy is calculated after these exemptions.
Since the IRS does not provide a specific Local Standard for Housing & Utilities for Boulder, CO MSA (listed as 'N/A'), taxpayers can and should claim their actual, necessary housing expenses. For example, if your rent for a 2-bedroom apartment is $2260.0, which aligns with the HUD FY2025 Fair Market Rent for the area, you can include this amount as a justifiable expense on your Form 433-A. If your actual housing costs exceed what the IRS might typically allow in other regions, you must clearly document why these expenses are necessary and reasonable. IRM 5.15.1.10 permits deviations from national or local standards when justified by specific facts and circumstances, strengthening your case for economic hardship.
The IRS generally has 10 years to collect a tax debt, a period known as the Collection Statute Expiration Date (CSED), as mandated by IRC §6502. This 10-year clock typically begins from the date the tax was assessed. It's crucial to understand that while certain actions, such as filing for bankruptcy or an Offer in Compromise (Form 656), can pause or extend this collection period, being placed in Currently Not Collectible (CNC) status does not. If your account is designated CNC under IRM 5.16.1, the 10-year CSED continues to run. This means that if the CSED expires while you are in CNC status, the IRS loses its legal right to collect the tax debt, providing a potential path to resolution.

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