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Cheyenne County, Colorado IRS Wage Levy & Hardship Assistance 2025

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

Understanding IRS Collection Standards in Cheyenne County

Navigating IRS collection actions, such as wage levies (Form 668-W) or bank levies (Form 668-A), can be daunting for taxpayers in Cheyenne County, Colorado. The IRS determines your ability to pay through a detailed financial analysis documented on Form 433-A, 'Collection Information Statement for Wage Earners and Self-Employed Individuals.' This process relies heavily on specific National and Local Standards to calculate your disposable income. For instance, the National Standards for Food, Clothing & Other allow a single person $812 per month, while a family of four is allocated $1983 per month, derived from Bureau of Labor Statistics data. Although specific IRS Local Housing & Utilities Standards are not available for Cheyenne County, the IRS recognizes that enforced collection can cause economic hardship, as outlined in IRC §6343(a)(1)(D). All these standards are published by the IRS on IRS.gov, drawing data from sources like the US Census Bureau and the Bureau of Labor Statistics.

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

For Cheyenne County, CO, the IRS Collection Financial Standards currently list 'N/A' for the Local Housing & Utilities allowance. This absence means the IRS will consider actual necessary housing expenses, potentially allowing more flexibility than in areas with fixed standards. To provide context, the US Department of Housing & Urban Development (HUD) reports the FY2025 Fair Market Rent (FMR) for a 2-bedroom residence in this area at $1100.0 per month. If your actual housing costs exceed what the IRS might deem reasonable, even without a specific local standard, you can argue for a deviation based on your specific circumstances, as detailed in Internal Revenue Manual (IRM) 5.15.1.10. Such an argument is strengthened when local market rents, like the HUD FMR, clearly demonstrate higher costs. Unfortunately, regional shelter CPI data from the Bureau of Labor Statistics is not available for this specific region to provide a year-over-year comparison.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS allows for essential living expenses across several categories. The National Standards for Food, Clothing & Other, derived from the Bureau of Labor Statistics Consumer Expenditure Survey, provide a monthly allowance of $812 for a single person, escalating to $1983 for a family of four, with an additional $357 for each extra person. This includes $449 for food, $44 for housekeeping supplies, $99 for apparel, $45 for personal care products, and $175 for miscellaneous items for a single individual. For healthcare, the IRS National Standards, based on the Medical Expenditure Panel Survey, allow $75 per person per month for those under 65, and $153 per person per month for those 65 and over. Transportation allowances for Cheyenne County, CO, are also critical. The IRS Local Standards, based on BLS data and AAA operating costs, permit $588 per month for one owned car (ownership costs) and $270 per month for operating costs in this region, totaling $858 per month for one vehicle, or $1176 for two owned cars plus $270 operating, totaling $1446 for two vehicles.

Qualifying for Currently Not Collectible (CNC) Status in Colorado

For taxpayers in Cheyenne County, Colorado, facing severe financial distress, the IRS offers 'Currently Not Collectible' (CNC) status. This temporary relief halts enforced collection actions when your allowable monthly expenses equal or exceed your income, leaving no funds for tax payments. To qualify, you must submit a completed Form 433-A, detailing your income, expenses, and assets. For a single filer in Cheyenne County, a basic calculation might include a reasonable housing expense (e.g., the HUD FMR for a 2-bedroom at $1100.0), plus National Standards for food ($812), healthcare ($75 for under 65), and local transportation ($858 for one car). This totals approximately $3045 in basic allowable expenses. If your net monthly income is less than or equal to this amount, you may qualify for CNC. Internal Revenue Manual (IRM) 5.16.1 outlines the procedures for CNC determinations. While CNC status means the IRS pauses collection, it's crucial to understand that interest and penalties continue to accrue, and the 10-year Collection Statute Expiration Date (CSED) under IRC §6502 continues to run. CNC status can also lead to the release of an existing levy under IRC §6343.

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Frequently Asked Questions

For Cheyenne County, CO, the IRS Collection Financial Standards for Local Housing & Utilities are currently listed as 'N/A' for 2025. This means the IRS does not have a fixed, predetermined allowance for housing in this specific area. Instead, the IRS will evaluate your actual, reasonable housing expenses when determining your ability to pay. For context, the U.S. Department of Housing and Urban Development (HUD) reports the FY2025 Fair Market Rent for a 2-bedroom unit in Cheyenne County at $1100.0 per month. Taxpayers should document all their housing costs and be prepared to justify them on Form 433-A. If actual expenses are high, it can support a claim of economic hardship under IRC §6343(a)(1)(D).
To qualify for Currently Not Collectible (CNC) status in Colorado, you must demonstrate to the IRS that you lack the financial ability to pay your tax debt after covering necessary living expenses. This process begins by filing a comprehensive Form 433-A, 'Collection Information Statement,' detailing your income, assets, and monthly expenses. The IRS will compare your net disposable income against its National and Local Collection Financial Standards. For example, if your total allowable expenses, including National Standards for food ($812 for single) and healthcare ($75 for under 65), plus local transportation ($858 for one car), and reasonable housing expenses (potentially using HUD FMR like $1100.0), exceed your monthly income, you may qualify. Internal Revenue Manual (IRM) 5.16.1 outlines the specific procedures for CNC determinations. While in CNC status, the IRS generally ceases collection activities, but interest and penalties continue to accrue, and the collection statute (IRC §6502) continues to run.
When the IRS issues a wage levy (Form 668-W) in Cheyenne County, CO, the amount exempt from the levy is determined by IRS Publication 1494, 'Table for Figuring Amount Exempt from Levy.' For 2025, a single taxpayer with zero dependents has $1096.67 per month protected from levy. If that single taxpayer claims one dependent, the exempt amount increases to $1680.0 per month. For a married taxpayer filing jointly with zero dependents, the same $1096.67 is exempt, while a married couple with one dependent can protect $2286.67 per month. Any income above these specific exemption amounts is subject to the levy. Unlike state wage garnishments which often cap at 25% of disposable earnings, federal IRS levies follow these specific exemption tables, which can often result in a higher percentage of wages being taken if income is significantly above the exemption threshold.
If your rent exceeds what the IRS allows, especially in Cheyenne County, CO, where specific Local Housing & Utilities Standards are listed as 'N/A,' you have a strong basis to argue for your actual necessary expenses. Since there's no fixed standard, the IRS will review your documented housing costs on Form 433-A. You can point to external data like the HUD FY2025 Fair Market Rent for a 2-bedroom in Cheyenne County at $1100.0 per month as evidence of reasonable local housing costs. If your actual, necessary rent is higher than typical or what an IRS agent might initially accept, Internal Revenue Manual (IRM) 5.15.1.10 allows for deviations from standard allowances based on unique facts and circumstances. You must provide clear documentation and a compelling explanation for why your higher housing expense is necessary and cannot be reduced, demonstrating that enforcing collection would cause economic hardship under IRC §6343(a)(1)(D).
The IRS generally has 10 years from the date of assessment to collect a tax debt, a period known as the Collection Statute Expiration Date (CSED), as mandated by Internal Revenue Code (IRC) §6502. This 10-year window can be paused or extended under certain circumstances, such as during an Offer in Compromise (Form 656) submission, a Collection Due Process appeal, or if you reside outside the U.S. While being placed in Currently Not Collectible (CNC) status halts active collection efforts, it does not extend the CSED; the 10-year clock continues to run. This means that if you remain in CNC status for the duration of the remaining collection period, your tax debt may expire uncollected. Understanding your CSED is crucial for developing a long-term resolution strategy, especially when considering options like CNC or an Offer in Compromise.

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