Navigating IRS Wage Levy and Hardship in Chase County, Kansas

When facing IRS collection actions in Chase County, Kansas, understanding the Internal Revenue Service's financial standards is crucial. The IRS uses Form 433-A, Collection Information Statement, to determine a taxpayer's ability to pay, calculating disposable income by subtracting allowable living expenses from gross monthly income. These allowable expenses are derived from National and Local Standards, ensuring a degree of fairness. For instance, the National Standards for Food, Clothing & Other allocate $812 per month for a single individual and $1,983 for a family of four. While specific housing standards for Chase County, KS, are not published by the IRS, the HUD Fair Market Rent for a 2-bedroom residence is $880.0. The IRS considers economic hardship under IRC §6343(a)(1)(D) when a levy would prevent a taxpayer from meeting basic living expenses. These critical figures are derived from comprehensive data sources including IRS.gov, Bureau of Labor Statistics (BLS) Consumer Expenditure Survey, and US Census Bureau American Community Survey data.

For taxpayers in Chase County, Kansas, navigating the IRS housing and utilities allowance can be challenging, as the IRS Collection Financial Standards do not provide a specific local housing allowance (stated as $N/A) for this area. In such cases, the IRS may consider actual necessary expenses, especially when they are reasonable. The US Department of Housing & Urban Development (HUD) Fair Market Rent (FMR) offers a practical benchmark, showing a 2-bedroom rental in Chase County, KS, at $880.0 per month, a 1-bedroom at $710.0, and a 3-bedroom at $1,180.0. If your actual housing costs exceed the IRS's general expectations or the available FMR data, you may be able to argue for a deviation from the standard under IRM 5.15.1.10. This deviation process requires demonstrating that your higher expenses are necessary and reasonable. The absence of specific local IRS housing standards and regional shelter CPI data (data not available for this region from the Bureau of Labor Statistics) further emphasizes the importance of presenting detailed documentation of your actual housing costs to the IRS.

Beyond housing, the IRS also accounts for essential living costs in Chase County, Kansas, through National and Local Standards. For food, clothing, and other necessities, the National Standards, based on the BLS Consumer Expenditure Survey, provide $812 per month for a single person, $1,478 for a two-person household, and $1,983 for a four-person household. Each additional person beyond four receives an allowance of $357. Healthcare is addressed by the National Standards for Out-of-Pocket Healthcare, allowing $75 per month for individuals under 65 and $153 for those 65 and over, derived from the Medical Expenditure Panel Survey. For transportation, the Local Standards for Chase County, KS, based on BLS data and AAA operating costs, allow $588 per month for the ownership of one car and $270 for operating costs, totaling $858 per month for one vehicle. For two vehicles, the ownership allowance doubles to $1,176, making a total of $1,446 per month for two cars including operating costs.

For taxpayers in Chase County, Kansas, who cannot afford to pay their tax debt, Currently Not Collectible (CNC) status offers a temporary reprieve from IRS enforced collection. To qualify, you must demonstrate to the IRS that your allowable living expenses equal or exceed your monthly income, leaving no disposable income for tax payments. This determination is made by filing Form 433-A, Collection Information Statement, detailing your financial situation. For a single filer in Chase County, KS, a potential calculation for total allowable expenses might include $880.0 for housing (using HUD FMR for a 2-bedroom as a practical proxy, given no specific IRS local housing standard), $812 for food/clothing/other, $75 for healthcare (under 65), and $858 for one-car transportation, totaling $2,825.0 per month. If your gross income does not exceed this amount, you may qualify for CNC. The IRS outlines procedures for CNC status in IRM 5.16.1 and will release a levy under IRC §6343 if it creates an economic hardship. It's important to note that CNC status does not forgive the debt; interest and penalties continue to accrue. However, it allows the Collection Statute Expiration Date (CSED), typically 10 years from assessment under IRC §6502, to continue running, potentially leading to the debt expiring without collection.