IRS Wage Levy, Bank Levy & Hardship Relief in Burt County, Nebraska

When the IRS assesses your ability to pay a tax debt, they utilize a detailed financial analysis process, typically initiated by filing Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals. This form helps the IRS calculate your disposable income by comparing your gross monthly income against a series of allowable living expenses, derived from both National and Local Standards. For a single individual in Burt County, NE, the IRS allows a monthly food expense of $449, part of the total $812 National Standard for Food, Clothing & Other. While specific IRS Local Standards for Housing & Utilities are not available for Burt County, NE, the IRS is required to consider your ability to pay without creating economic hardship, as outlined in Internal Revenue Code (IRC) §6343(a)(1)(D). These crucial financial standards are meticulously compiled from diverse sources including IRS.gov Collection Financial Standards, Bureau of Labor Statistics (BLS) Consumer Expenditure Survey data, and the US Census Bureau American Community Survey.

A significant challenge for taxpayers in Burt County, NE, is the absence of specific IRS Local Standards for Housing & Utilities, which are listed as $N/A for all household sizes on IRS.gov. In such instances, the IRS acknowledges that taxpayers must still cover reasonable housing costs. For Burt County, NE, the Department of Housing & Urban Development (HUD) FY2025 Fair Market Rent (FMR) provides a realistic benchmark, with a 2-bedroom unit costing $1080.0 per month, and a 1-bedroom at $910.0. If your actual housing expenses reasonably exceed the IRS's N/A standard, or if the HUD FMR exceeds what the IRS might otherwise allow, you have a strong basis to request a deviation from standard allowances. Internal Revenue Manual (IRM) 5.15.1.10 permits such deviations when a taxpayer can demonstrate that their actual necessary expenses are higher than the standard amounts. This is especially relevant when regional economic indicators, such as the Bureau of Labor Statistics (BLS) Consumer Price Index (CPI) for Shelter, are not available for this specific region, emphasizing the need for flexible consideration of actual costs.

Beyond housing, the IRS provides National Standards for essential living expenses. For food, clothing, and miscellaneous items, a single individual in Burt County, NE, is allowed $812 monthly, increasing to $1478 for a two-person household and $1983 for a four-person household. These figures are derived from the Bureau of Labor Statistics Consumer Expenditure Survey. Healthcare costs are addressed through National Standards for Out-of-Pocket Healthcare, allowing $75 per person monthly for those under 65 and $153 for those 65 and over, based on the Medical Expenditure Panel Survey. Transportation is another critical allowance. For Burt County, NE, the IRS Local Standards for Transportation permit $588 for one car ownership costs and an additional $270 for operating expenses (such as fuel and maintenance), totaling $858 per month for a single vehicle. These transportation figures are based on Bureau of Labor Statistics data and American Automobile Association operating costs, reflecting regional variations.

Achieving Currently Not Collectible (CNC) status in Burt County, Nebraska, is a critical form of relief if your financial situation prevents you from paying your tax debt. To qualify, you must demonstrate to the IRS that your total necessary living expenses, as determined by the IRS National and Local Standards, equal or exceed your monthly income. This process begins with submitting a comprehensive Form 433-A, Collection Information Statement. For a single filer in Burt County, NE, a common calculation might include a housing allowance based on the HUD FMR for a 2-bedroom unit at $1080.0, plus $812 for food, clothing, and other items, $75 for healthcare (under 65), and $858 for transportation. If your total allowable expenses ($1080.0 + $812 + $75 + $858 = $2825.0) exceed your income, the IRS may place your account in CNC status. This means the IRS will temporarily cease active collection efforts, and any existing levies (like Form 668-W wage levies or Form 668-A bank levies) must be released under IRC §6343. It's crucial to remember that while CNC status provides relief, 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 assessment date under IRC §6502. IRM 5.16.1 outlines the specific procedures for CNC determinations.