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Chase County, Nebraska IRS Wage Levy & Hardship Assistance

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

Understanding IRS Collection Standards in Chase County, NE

Taxpayers in Chase County, Nebraska facing IRS collection actions, such as wage levies (Form 668-W) or bank levies (Form 668-A), must understand how the IRS determines their ability to pay. The IRS uses a detailed financial analysis, primarily through Form 433-A, Collection Information Statement, to calculate a taxpayer's disposable income. This calculation relies on National and Local Collection Financial Standards, which define allowable monthly living expenses. For instance, a single individual in Chase County is allocated $812 monthly for Food, Clothing, and Other necessary expenses, derived from Bureau of Labor Statistics data. While specific IRS Local Housing & Utilities Standards are not provided for Chase County, actual reasonable expenses are considered. The objective is to ensure taxpayers can meet basic living needs, preventing economic hardship as outlined in IRC §6343(a)(1)(D). These standards are sourced from IRS.gov Collection Financial Standards, which integrate data from the US Census Bureau American Community Survey and the Bureau of Labor Statistics.

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

For Chase County, Nebraska, specific IRS Local Standards for Housing & Utilities are not provided (N/A). In such cases, the IRS will evaluate actual, reasonable housing expenses. This often means taxpayers must substantiate their costs, which can be benchmarked against local economic data. For comparison, the US Department of Housing & Urban Development (HUD) sets the FY2025 Fair Market Rent (FMR) for Chase County at $760.0 for a Studio, $830.0 for a 1-bedroom, $1060.0 for a 2-bedroom, $1300.0 for a 3-bedroom, and $1700.0 for a 4-bedroom property. If a taxpayer's actual, reasonable housing expenses exceed a general unstated IRS threshold, they may argue for a deviation under Internal Revenue Manual (IRM) 5.15.1.10. This requires compelling facts and circumstances demonstrating the necessity of the higher expense. Unfortunately, regional Shelter CPI data (YoY) from the Bureau of Labor Statistics is not available for this specific region to show local housing cost trends, making the HUD FMR data particularly relevant for demonstrating reasonable local housing costs.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS provides National and Local Standards for other essential living expenses. For Food, Clothing, and Other expenses, a single person in Chase County, NE is allotted $812 monthly. This increases to $1478 for two people, $1697 for three, and $1983 for a family of four, with an additional $357 for each extra person, according to IRS National Standards based on the Bureau of Labor Statistics Consumer Expenditure Survey. Healthcare costs are covered by 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. For transportation, Chase County residents are subject to the IRS Local Standards for Transportation. These standards allow $588 monthly for ownership costs for one car and an additional $270 for operating costs in this region, totaling $858 for one vehicle. For two vehicles, the ownership allowance is $1176, making the total $1446. These figures are derived from Bureau of Labor Statistics data and American Automobile Association operating costs.

Qualifying for Currently Not Collectible (CNC) Status in Nebraska

Achieving Currently Not Collectible (CNC) status in Nebraska means the IRS has determined you lack the financial capacity to pay your tax debt after accounting for necessary living expenses. To qualify, taxpayers in Chase County must submit Form 433-A, Collection Information Statement, detailing their income, assets, and expenses. The IRS then compares your total income against your total allowable expenses using the National and Local Standards. For example, a single filer in Chase County might demonstrate a monthly expense total of $1060.0 (using HUD FMR for a 2BR as a reasonable housing expense in lieu of a specific IRS standard) + $812 (food, clothing, other) + $75 (healthcare, under 65) + $858 (one-car transportation) = $3005.0. If their net income is less than this total, they may qualify for CNC. This status, detailed in IRM 5.16.1, can lead to the release of an existing IRS levy under IRC §6343. It's crucial to understand that CNC status does not forgive the debt; interest and penalties continue to accrue. However, it allows the Collection Statute Expiration Date (CSED) under IRC §6502, typically 10 years from the assessment date, to continue running without extending it, potentially leading to the debt expiring if the IRS does not find a future ability to pay.

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Frequently Asked Questions

For Chase County, Nebraska, the IRS has not published specific local housing and utilities standards (N/A). In such instances, the IRS will consider a taxpayer's actual, reasonable housing expenses when determining their ability to pay. These actual expenses must be substantiated and can often be benchmarked against local rental market data to demonstrate their reasonableness. For example, the HUD FY2025 Fair Market Rent for Chase County indicates a 2-bedroom unit averages $1060.0 monthly, while a 1-bedroom is $830.0 and a 3-bedroom is $1300.0. If your documented housing costs are higher than what the IRS deems reasonable without a specific standard, you may need to present a compelling argument for a deviation, as outlined in IRM 5.15.1.10, based on your specific facts and circumstances.
To qualify for Currently Not Collectible (CNC) status in Nebraska, you must demonstrate to the IRS that your income is insufficient to cover your necessary living expenses, leaving no disposable income to pay your tax debt. This process begins by submitting Form 433-A, Collection Information Statement, detailing your financial situation. The IRS will evaluate your income against allowable expenses using National Standards (e.g., $812 for a single person's food/clothing, $75 for healthcare under 65) and Local Standards (e.g., $858 for one-car transportation in Chase County). Since specific housing standards are N/A for Chase County, your actual, reasonable housing expenses (e.g., $1060.0 for a 2-bedroom, per HUD FMR) will be considered. If your total allowable expenses exceed your net income, the IRS may place your account in CNC status, suspending collection efforts as per IRM 5.16.1. This status is temporary and subject to review, but it can lead to the release of levies under IRC §6343.
When the IRS issues a wage levy (Form 668-W) in Chase County, Nebraska, the amount taken from your paycheck is determined by specific exemption amounts outlined in IRS Publication 1494. The IRS cannot levy your entire wages. For 2025, a single individual with zero dependents is exempt from levy on $1096.67 per month. If that same single individual has one dependent, the exempt amount increases to $1680.0 per month. For a married individual filing jointly with zero dependents, the exempt amount is also $1096.67, but with one dependent, it rises to $2286.67 monthly. Any income above these exemption thresholds is subject to the levy, as authorized by IRC §6331. Nebraska state wage garnishment laws generally follow the federal Consumer Credit Protection Act (CCPA) limits, which typically mean the IRS levy will take precedence due to its federal nature, but the Pub 1494 exemptions are always applied first.
Since specific IRS Local Standards for Housing & Utilities are not provided (N/A) for Chase County, Nebraska, the IRS evaluates your actual, reasonable housing expenses. If your rent exceeds what the IRS might informally consider reasonable, or if you simply need to justify a higher expense, you can argue for a deviation. For instance, the HUD FY2025 Fair Market Rent for a 2-bedroom in Chase County is $1060.0. If your rent is higher, you must demonstrate through compelling facts and circumstances why your specific housing cost is necessary and reasonable for your household size and location. This process, detailed in IRM 5.15.1.10, requires robust documentation, such as lease agreements, utility bills, and a clear explanation of your situation. Successfully justifying higher actual expenses can significantly impact your disposable income calculation and your ability to qualify for hardship status.
The IRS generally has 10 years to collect a tax debt from the date of assessment. This period is known as the Collection Statute Expiration Date (CSED), as mandated by Internal Revenue Code (IRC) §6502. It is a critical deadline for both the taxpayer and the IRS. While actions like filing an Offer in Compromise, requesting a Collection Due Process hearing, or filing for bankruptcy can temporarily 'toll' or pause the CSED, being placed in Currently Not Collectible (CNC) status does not extend this 10-year collection window. This means that if your account remains in CNC status for a prolonged period, and the IRS does not find you able to pay, the debt may eventually expire due to the CSED. Understanding your CSED is a crucial part of any long-term tax resolution strategy.

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