IRS Wage Levy & Hardship Relief in Crowley County, Colorado

For taxpayers in Crowley County, Colorado facing IRS collection actions, understanding the IRS Collection Financial Standards is crucial. These standards, utilized when evaluating a taxpayer's ability to pay through Form 433-A, Collection Information Statement, determine your allowable monthly living expenses. While the IRS National Standards for Food, Clothing, and Other provide a baseline, such as $812 for a single person's food expenses, the local housing and utilities standard for Crowley County is currently listed as $N/A for all household sizes. This lack of a specific local housing allowance means taxpayers must often justify their actual housing costs. If the IRS determines your income is insufficient to cover basic living expenses as defined by these standards, you may qualify for economic hardship relief under Internal Revenue Code (IRC) §6343(a)(1)(D). This critical data is derived from reliable sources including IRS.gov Collection Financial Standards, Bureau of Labor Statistics (BLS) Consumer Expenditure Surveys, and US Census Bureau American Community Survey data.

The IRS Collection Financial Standards for Housing and Utilities in Crowley County, Colorado are currently $N/A for all household sizes (1-person, 2-person, 3-person, 4-person, and 5+ persons). This absence of a specific local standard means that the IRS will typically evaluate actual necessary housing expenses. For comparison, the Department of Housing & Urban Development (HUD) Fair Market Rent (FMR) for FY2025 in this area indicates a 2-bedroom unit at $1300.0 per month. If your actual housing costs, such as the HUD FMR of $1300.0 for a 2-bedroom property, exceed the typically undefined or non-existent IRS local standard, you have a strong basis to request a deviation. Internal Revenue Manual (IRM) 5.15.1.10 permits the IRS to allow reasonable amounts for necessary expenses that exceed the National or Local Standards, provided proper documentation is submitted. Unfortunately, regional shelter Consumer Price Index (CPI) year-over-year data is not available for this specific region to show local housing cost trends.

Beyond housing, the IRS allows for other essential living expenses. The National Standards for Food, Clothing, and Other, based on Bureau of Labor Statistics Consumer Expenditure Survey data, provide specific allowances: $812 for a 1-person household, $1478 for 2 persons, $1697 for 3 persons, and $1983 for 4 persons, with an additional $357 for each subsequent person. Healthcare is also covered by National Standards, derived from the Medical Expenditure Panel Survey, allowing $75 per person under 65 years old and $153 per person 65 and over monthly. For transportation in Crowley County, Colorado, the IRS Local Standards, based on BLS data and American Automobile Association operating costs, provide a monthly allowance of $588 for the ownership of one car and $270 for operating costs in this region, totaling $858 for one car. For two cars, the ownership allowance is $1176, making the total $1446 (ownership + operating for two cars).

Achieving Currently Not Collectible (CNC) status in Colorado can provide crucial relief from IRS enforced collection actions like wage levies (Form 668-W) and bank levies (Form 668-A). To qualify, you must demonstrate to the IRS that your allowable monthly living expenses, as determined by the Collection Financial Standards, meet or exceed your net monthly income. This process begins by submitting a comprehensive Form 433-A, Collection Information Statement, detailing your income, assets, and expenses. For a single filer in Crowley County, a typical calculation might include the HUD Fair Market Rent of $1300.0 for a 2-bedroom unit (as IRS housing is N/A), plus $812 for food, clothing, and other expenses, $75 for healthcare (under 65), and $858 for one car's transportation. This totals $3245.0 in monthly allowable expenses. If your net income is less than this amount, the IRS may place your account in CNC status. IRM 5.16.1 outlines the procedures for CNC, and IRC §6343 allows for the release of a levy if it creates an economic hardship. While in CNC, the IRS will not actively collect, but interest and penalties continue to accrue. Importantly, CNC status does not extend the Collection Statute Expiration Date (CSED) under IRC §6502, which is generally 10 years from the date of tax assessment.