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Bozeman, Montana MSA IRS Wage Levy & Hardship Assistance

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

Understanding IRS Collection Standards in Bozeman, MT MSA

When the IRS assesses your ability to pay a tax debt in Bozeman, MT MSA, they use Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals, to meticulously calculate your disposable income. This calculation relies on a combination of National and Local Standards, derived from comprehensive data by the US Census Bureau and the Bureau of Labor Statistics (BLS). For instance, the National Standard for food, clothing, and miscellaneous expenses allows a single person $812 per month, while a family of four can claim $1983. These standards, published on IRS.gov, ensure that taxpayers retain funds for basic necessities. Understanding these allowances is critical, as they directly impact whether the IRS determines you have an economic hardship under IRC §6343(a)(1)(D), potentially leading to a levy release or Currently Not Collectible status.

Bozeman, MT MSA Housing & Utilities Allowance vs. HUD Fair Market Rent

For taxpayers in the Bozeman, MT MSA, the IRS Collection Financial Standards currently list 'N/A' for the Housing & Utilities Local Standard. This means the IRS does not have a pre-determined maximum amount for housing and utilities in this specific area. In such cases, the IRS will generally allow a taxpayer's actual, reasonable housing and utility expenses, provided they are properly documented. To illustrate the local housing costs, the HUD FY2025 Fair Market Rent data for Bozeman, MT MSA indicates a 2-bedroom unit averages $2030.0 per month, and a 1-bedroom unit is $1550.0. If your actual rent significantly exceeds typical local costs, or in this 'N/A' scenario, you may need to submit a deviation request under Internal Revenue Manual (IRM) 5.15.1.10. This process allows taxpayers to justify expenses above standard amounts, especially relevant given that regional shelter CPI data is not available to show year-over-year changes for Bozeman, MT MSA.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS also considers other essential living costs for Bozeman, MT MSA residents. The National Standards for Food, Clothing, and Other Necessary Expenses are based on the BLS Consumer Expenditure Survey, allowing a single person $812 per month, which includes $449 for food. For a family of four, this allowance increases to $1983 per month. Healthcare expenses are also standardized; based on Medical Expenditure Panel Survey data, individuals under 65 are allowed $75 per month, while those 65 and over can claim $153 monthly. Transportation allowances are determined by IRS Local Standards, utilizing BLS data and American Automobile Association (AAA) operating costs. For Bozeman, MT MSA, a single car ownership allowance is $588 per month, with an additional $270 for operating costs in this region, totaling $858 per month for one vehicle. These specific allowances are crucial in determining a taxpayer's ability to pay.

Qualifying for Currently Not Collectible (CNC) Status in Montana

Achieving Currently Not Collectible (CNC) status in Montana can provide temporary relief from IRS enforced collection actions like wage levies (Form 668-W) or bank levies (Form 668-A). To qualify, taxpayers in Bozeman, MT MSA must file a detailed Form 433-A, Collection Information Statement, demonstrating that their monthly income is less than or equal to their total allowable living expenses. For example, a single filer might claim a reasonable housing expense (e.g., a 1-bedroom HUD FMR of $1550.0 as a justified actual expense), plus $812 for National Standard food and miscellaneous, $75 for healthcare, and $858 for one-car transportation. If their total allowable expenses ($1550.0 + $812 + $75 + $858 = $3295.0) exceed their net monthly income, CNC status under IRM 5.16.1 may be granted, leading to a levy release per IRC §6343. Importantly, while CNC status pauses collection, it does not extend the Collection Statute Expiration Date (CSED), which is typically 10 years from assessment under IRC §6502.

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Frequently Asked Questions

For Bozeman, MT MSA, the IRS Collection Financial Standards for Housing & Utilities are listed as 'N/A'. This means there isn't a fixed, pre-set monthly allowance. Instead, the IRS will consider your actual, reasonable housing and utility expenses. For context, the HUD FY2025 Fair Market Rent data for Bozeman, MT MSA indicates a Studio apartment averages $1400.0, a 1-bedroom is $1550.0, and a 2-bedroom is $2030.0. If your actual expenses are in line with or below these figures, they are generally considered reasonable. If your costs are higher, you would need to provide documentation and justify the necessity of these expenses, potentially requesting a deviation from standard procedures as outlined in IRM 5.15.1.10.
To qualify for Currently Not Collectible (CNC) status in Montana, you must demonstrate to the IRS that you lack the financial ability to pay your tax debt. This involves submitting a Form 433-A, Collection Information Statement, detailing your income, assets, and monthly living expenses. The IRS then compares your total net income against your total allowable expenses, which include National Standards (e.g., $812 for a single person's food, clothing, and miscellaneous) and Local Standards (e.g., $858 for one-car transportation in Bozeman, MT MSA, and justified actual housing expenses). If your income is equal to or less than your allowable expenses, the IRS may place your account in CNC status under IRM 5.16.1. While in CNC, the IRS will generally cease enforced collection actions like levies, but interest and penalties continue to accrue, and the debt is not forgiven.
When the IRS issues a wage levy (Form 668-W) in Bozeman, MT MSA, they cannot take your entire paycheck. The amount exempt from levy is determined by IRS Publication 1494, Table for Figuring Amount Exempt from Levy. For 2025, a single individual with zero dependents can protect $1096.67 per month. A single individual with one dependent can protect $1680.0 per month, while a married individual filing jointly with one dependent can protect $2286.67 per month. This exempt amount is subtracted from your disposable earnings (gross pay minus statutory deductions like federal/state/local income tax, FICA, and mandatory retirement contributions). The remaining amount is what the IRS can levy. Montana follows federal 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. However, IRS levies generally supersede state limits.
Given that the IRS Local Standards for Housing & Utilities are listed as 'N/A' for Bozeman, MT MSA, your actual rent and utility expenses are generally considered by the IRS, provided they are reasonable and necessary. For reference, the HUD FY2025 Fair Market Rent for a 2-bedroom apartment in Bozeman, MT MSA is $2030.0. If your rent exceeds what the IRS might consider reasonable for your household size and income, or if you simply need to substantiate your actual costs because no standard exists, you can request a deviation. Under IRM 5.15.1.10, you must provide documentation (e.g., lease agreements, utility bills) and a detailed explanation of why your expenses are necessary and reasonable. The IRS will review this information to determine if an exception to standard allowances is warranted, aiming to leave you with sufficient funds for basic living.
The IRS generally has 10 years to collect a tax debt, a period known as the Collection Statute Expiration Date (CSED), established under Internal Revenue Code (IRC) §6502. This 10-year period typically begins from the date the tax was assessed. Various actions can pause or extend this collection period. For instance, if you submit an Offer in Compromise (Form 656), request a Collection Due Process (CDP) appeal, or reside outside the U.S. for an extended period, the CSED clock may be suspended. However, being placed in Currently Not Collectible (CNC) status under IRM 5.16.1, while pausing active collection efforts like wage levies (Form 668-W) or bank levies (Form 668-A) under IRC §6331, generally does not extend the CSED. It is crucial to monitor your CSED to understand the IRS's remaining time to collect your outstanding tax liabilities.

Sources & Methodology