Navigating IRS Wage Levy & Hardship in Brazoria County, Texas

When the IRS assesses your ability to pay a tax debt, they utilize a comprehensive set of financial standards to determine your disposable income. Taxpayers in Brazoria County, TX, facing enforced collection actions like a wage levy (Form 668-W) or bank levy (Form 668-A), must submit IRS Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals. This form details your income, expenses, assets, and liabilities. The IRS then calculates your allowable expenses using National Standards (for Food, Clothing, and Other items) and Local Standards (for Housing, Utilities, and Transportation). For a single individual in Brazoria County, the monthly Food allowance is $449, part of the total $812 for Food, Clothing, and Other expenses. While the IRS does not publish a separate 'local standard' for housing, it uses the HUD Fair Market Rent data as the basis for allowable housing expenses in your area. If your allowable expenses exceed your income, the IRS may determine you are experiencing economic hardship, as defined under IRC §6343(a)(1)(D), potentially leading to a levy release or Currently Not Collectible (CNC) status. This critical data is derived from IRS.gov, Bureau of Labor Statistics (BLS), and US Census Bureau sources.

For taxpayers in Brazoria County, TX, the IRS uses the Department of Housing and Urban Development (HUD) Fair Market Rent (FMR) data as the basis for determining allowable housing and utilities expenses. While the IRS Collection Financial Standards do not list a specific 'local standard' for housing, the HUD FY2025 FMR for this area provides concrete figures: a 1-bedroom unit is $1050.0 per month, and a 2-bedroom unit is $1150.0 per month. If your actual housing expenses, including utilities, exceed the standard amount the IRS allows for your household size, you may be able to argue for a deviation from the standard. Internal Revenue Manual (IRM) 5.15.1.10 outlines the procedures for allowing necessary expenses that exceed the National or Local Standards when the expenses are reasonable and necessary. Given that the regional shelter CPI data is not available for this region, taxpayers must rely on clear documentation of their actual, reasonable expenses. If your documented rent for a 2-bedroom unit is $1150.0, this directly aligns with the HUD FMR used by the IRS as a baseline, strengthening a deviation argument if your actual costs are higher.

Beyond housing, the IRS provides specific allowances for other essential living expenses. For taxpayers in Brazoria County, TX, the National Standards for Food, Clothing, and Other items are crucial. A single person is allowed $812 per month, while a family of four is allowed $1983 per month. These figures are based on the Bureau of Labor Statistics Consumer Expenditure Survey. Healthcare expenses are also standardized; individuals under 65 are allowed $75 per month, and those 65 and over are allowed $153 per month per person. A family of four, all under 65, would be allowed $300 per month for healthcare. These amounts are derived from the Medical Expenditure Panel Survey. For transportation, Brazoria County residents fall under the IRS Local Standards. An individual owning one car is allowed $588 for ownership costs and $270 for operating costs, totaling $858 per month. For a household with two cars, the allowance is $1176 for ownership and $270 for operating costs, totaling $1446 per month. These transportation allowances are based on Bureau of Labor Statistics data and American Automobile Association operating costs.

Achieving Currently Not Collectible (CNC) status in Brazoria County, TX, means the IRS has determined you cannot afford to pay your tax debt without experiencing economic hardship. To qualify, you must file IRS Form 433-A, providing a detailed financial picture. The IRS will compare your total monthly income against your total allowable expenses, which include the National and Local Standards discussed previously. For a single filer in Brazoria County, a typical calculation might involve a housing allowance based on the HUD FMR of $1150.0 (for a 2-bedroom unit), plus a food allowance of $812, a healthcare allowance of $75 (under 65), and a transportation allowance of $858 (for one car). This totals $2895.0 in basic allowable expenses. If your net income is less than this amount, you may qualify for CNC. Internal Revenue Manual (IRM) 5.16.1 outlines the procedures for CNC determinations, and IRC §6343 permits the release of a levy if it creates economic hardship. Importantly, while CNC status temporarily halts collection, it does not stop the accrual of penalties and interest, nor does it extend the Collection Statute Expiration Date (CSED), which is typically 10 years from the date of assessment, as per IRC §6502. The IRS will review your financial situation periodically.