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Burnett County, Wisconsin IRS Wage Levy & Hardship Relief

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

Understanding IRS Collection Standards in Burnett County, WI

When the IRS initiates enforced collection actions such as a wage levy (Form 668-W) or bank levy (Form 668-A) in Burnett County, Wisconsin, understanding the IRS Collection Financial Standards is paramount. These standards, integral to Form 433-A, 'Collection Information Statement for Wage Earners and Self-Employed Individuals,' dictate how the IRS calculates your disposable income and your ability to pay. The IRS uses these National and Local Standards to determine an allowable amount for necessary living expenses, helping to identify if you qualify for an Offer in Compromise or Currently Not Collectible (CNC) status due to economic hardship, as outlined in IRC §6343(a)(1)(D). For a single individual in Burnett County, the monthly National Standard for Food, Clothing, and Other Necessities is $812, including $449 for food. These critical figures are derived from robust data sources including IRS.gov Collection Financial Standards, the Bureau of Labor Statistics (BLS) Consumer Expenditure Survey, and the US Census Bureau American Community Survey.

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

For taxpayers in Burnett County, Wisconsin, it is crucial to note that the IRS Collection Financial Standards for Housing and Utilities are listed as $N/A for all household sizes. This absence means the IRS does not provide a pre-set allowance for your housing expenses. Consequently, taxpayers must document and justify their actual reasonable housing and utility costs. For context, the U.S. Department of Housing and Urban Development (HUD) Fair Market Rent (FMR) for Burnett County in FY2025 is $1030.0 for a 2-bedroom unit. If your actual, reasonable housing costs exceed a typical allowance, you may need to request a deviation from the standard, a process detailed in Internal Revenue Manual (IRM) 5.15.1.10. Given the $N/A standard, demonstrating your actual rent, especially when it aligns with or is below the HUD FMR, is critical. Unfortunately, regional Shelter CPI data for Burnett County is not available from the Bureau of Labor Statistics, making direct year-over-year comparisons challenging.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS provides specific allowances for other essential living expenses. For food, clothing, and miscellaneous items, the National Standards range 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 is covered by National Standards for Out-of-Pocket Healthcare, allowing $75 per person under 65 and $153 per person aged 65 and over monthly, derived from the Medical Expenditure Panel Survey. For transportation in Burnett County, the Local Standards allow $588 for the ownership costs of one vehicle and $270 for operating costs in the region, totaling $858 per month for one car. For two vehicles, the allowance increases to $1176 for ownership, resulting in a total of $1446 when combined with operating costs. These figures are based on BLS data and American Automobile Association operating costs, ensuring a realistic assessment of necessary expenses.

Qualifying for Currently Not Collectible (CNC) Status in Wisconsin

If an IRS wage levy (Form 668-W) or bank levy (Form 668-A) is threatening your financial stability in Burnett County, Wisconsin, qualifying for Currently Not Collectible (CNC) status can provide crucial relief. To qualify, you must demonstrate to the IRS that your allowable monthly living expenses equal or exceed your monthly income, leaving no disposable income for tax payments. This process starts by filing Form 433-A, 'Collection Information Statement,' detailing your financial situation. For a single filer in Burnett County, combining typical allowable expenses might look like: a reasonable housing expense (e.g., using HUD FMR 2BR of $1030.0 as a benchmark for actual costs), plus $812 for food/clothing/other, $75 for healthcare (under 65), and $858 for one vehicle's transportation costs, totaling $2775. If your income is less than or equal to this total, the IRS may place your account in CNC status, as per IRM 5.16.1. This status prevents enforced collection actions and can lead to the release of an existing levy under IRC §6343. Importantly, CNC status does not extend the Collection Statute Expiration Date (CSED), which is generally 10 years from the assessment date under IRC §6502.

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Frequently Asked Questions

For Burnett County, Wisconsin, the IRS Collection Financial Standards for Housing and Utilities are listed as $N/A for all household sizes. This means there is no pre-determined standard allowance. Instead, the IRS requires taxpayers to report and justify their actual, reasonable housing and utility expenses. For reference, the U.S. Department of Housing and Urban Development (HUD) Fair Market Rent (FMR) for a 2-bedroom unit in Burnett County is $1030.0 for FY2025. When no IRS standard exists, your actual, substantiated expenses are considered. It is crucial to gather documentation for your rent or mortgage, property taxes, insurance, and utilities to ensure these costs are fully recognized, potentially requiring a deviation request under IRM 5.15.1.10 if they are deemed high.
To qualify for Currently Not Collectible (CNC) status in Wisconsin, you must demonstrate to the IRS that you lack the financial ability to pay your tax debt. This involves completing and submitting Form 433-A, 'Collection Information Statement for Wage Earners and Self-Employed Individuals,' which details your income, assets, and allowable living expenses. The IRS compares your total allowable expenses, using National and Local Standards (e.g., $812 for a single person's food, clothing, and other expenses), against your monthly income. If your allowable expenses meet or exceed your income, leaving no funds for tax payments, the IRS may place your account in CNC status under IRM 5.16.1. This status pauses active collection efforts, including wage levies (Form 668-W) and bank levies (Form 668-A), acknowledging your current economic hardship.
The amount the IRS can take from your paycheck in Burnett County, Wisconsin, through a wage levy (Form 668-W) is determined by IRS Publication 1494, 'Table for Figuring Amount Exempt from Levy.' It's not a fixed percentage but rather a calculated amount based on your filing status and the number of dependents you claim. For example, in 2025, a single individual with zero dependents has $1096.67 of their monthly wages exempt from levy. A single individual with one dependent would have $1680.0 exempt. For a married individual filing jointly with zero dependents, the exempt amount is also $1096.67, while with one dependent, it rises to $2286.67. Any disposable earnings above these thresholds can be seized by the IRS. Wisconsin's state wage garnishment laws defer to federal limits under the Consumer Credit Protection Act (CCPA) for federal tax levies.
Given that the IRS Collection Financial Standards for Housing and Utilities in Burnett County, Wisconsin, are listed as $N/A, your actual, reasonable housing expenses are the primary consideration. This means you are not limited by a specific IRS standard amount but must justify your costs. For instance, if your actual rent is $1030.0 for a 2-bedroom unit, aligning with the HUD Fair Market Rent for the area, this would generally be considered reasonable. If your actual expenses are higher, you may need to request a deviation from the standard, explaining why your costs are necessary and reasonable for your circumstances. This process is outlined in IRM 5.15.1.10. Providing thorough documentation like lease agreements, mortgage statements, and utility bills is crucial to support your claim for higher allowable expenses, which can be critical for securing an Offer in Compromise or Currently Not Collectible status.
The IRS generally has 10 years from the date a tax liability is assessed to collect the debt. This period is known as the Collection Statute Expiration Date (CSED), as mandated by Internal Revenue Code (IRC) §6502. While the IRS can pursue enforced collection actions like wage levies (Form 668-W) or bank levies (Form 668-A) within this 10-year window, certain events can pause or 'suspend' the CSED, effectively extending the collection period. However, being placed in Currently Not Collectible (CNC) status, while pausing active collection efforts, does NOT typically extend the CSED. This means that if you remain in CNC status until the CSED expires, the IRS may no longer be able to collect the debt, making CNC a powerful strategy for some taxpayers in Burnett County, WI, facing long-term financial hardship.

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