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Custer County, Nebraska IRS Wage Levy & Hardship Relief

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

Understanding IRS Collection Standards in Custer County, NE

For taxpayers in Custer County, Nebraska facing IRS enforced collection, understanding the IRS Collection Financial Standards is paramount. The IRS uses these standards, often documented on Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals, to determine a taxpayer's ability to pay. These standards establish allowable monthly expenses for necessities like food, clothing, housing, and transportation, helping the IRS calculate disposable income. For instance, the National Standard for Food, Clothing & Other for a single individual is $812 per month, with $449 allocated specifically for food. If a taxpayer's essential living expenses, as determined by these standards, exceed their income, they may qualify for economic hardship relief under Internal Revenue Code (IRC) §6343(a)(1)(D). This critical data is derived from authoritative sources including IRS.gov Collection Financial Standards, Bureau of Labor Statistics (BLS) Consumer Expenditure Survey, and US Census Bureau American Community Survey data.

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

In Custer County, Nebraska, the IRS Collection Financial Standards currently list 'N/A' for the Local Housing and Utilities allowance, indicating no specific IRS standard for the area. This can be a critical point for taxpayers. While the IRS does not provide a specific local housing standard, the U.S. Department of Housing and Urban Development (HUD) Fair Market Rent (FMR) for FY2025 provides relevant benchmarks, such as $1290.0 per month for a 2-bedroom unit in Custer County. When no specific IRS local standard exists, or if a taxpayer's actual, necessary housing expenses exceed an IRS standard, Internal Revenue Manual (IRM) 5.15.1.10 allows for a deviation based on a taxpayer's specific facts and circumstances. Demonstrating actual, reasonable housing costs, especially when they align with or exceed HUD FMR values, can strengthen an argument for a higher allowable expense. It's noted that regional shelter Consumer Price Index (CPI) data from the Bureau of Labor Statistics for this specific region is not available.

Food, Healthcare & Transportation Allowances

The IRS Collection Financial Standards outline specific allowances for other essential living expenses. For Food, Clothing & Other, the National Standards range from $812 per month for a single individual to $1983 for a family of four, with an additional $357 for each extra person, based on the BLS Consumer Expenditure Survey. Healthcare costs are addressed by the National Standards for Out-of-Pocket Healthcare, allowing $75 per person under 65 and $153 per person 65 and over monthly, derived from the Medical Expenditure Panel Survey. For transportation in Custer County, NE, the IRS Local Standards provide specific allowances: $588 per month for the ownership costs of one car and $270 for operating costs in this region, totaling $858 per month for one vehicle. For two vehicles, the ownership allowance is $1176, making the total transportation allowance $1446. These figures are based on BLS data and American Automobile Association operating costs.

Qualifying for Currently Not Collectible (CNC) Status in Nebraska

Taxpayers in Nebraska may qualify for Currently Not Collectible (CNC) status if their allowable monthly expenses meet or exceed their income, indicating no ability to pay their tax debt. To establish CNC status, taxpayers must submit a detailed financial statement, typically Form 433-A. The IRS then compares their income to the sum of their allowable expenses. For example, a single filer in Custer County, NE, with actual housing costs of $1290.0 (based on HUD FMR for a 2-bedroom, given no specific IRS local standard), plus the National Standard for Food, Clothing & Other of $812, an Out-of-Pocket Healthcare allowance of $75 (under 65), and a Transportation allowance of $858 (for one car), would have total allowable expenses of $3035. If their net monthly income is less than this, they may qualify for CNC. IRM 5.16.1 outlines the procedures for CNC determinations, which can lead to a levy release under IRC §6343. It's crucial to note that while CNC status temporarily stops collection actions, it does not extend the Collection Statute Expiration Date (CSED) under IRC §6502, which generally limits the IRS to 10 years to collect a tax debt.

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Frequently Asked Questions

For Custer County, Nebraska, the IRS Collection Financial Standards for Housing and Utilities are currently listed as 'N/A.' This means there is no specific, pre-determined IRS local standard. However, taxpayers can still claim a reasonable and necessary housing expense. For context, the HUD Fair Market Rent (FMR) for FY2025 in Custer County indicates a 2-bedroom unit at $1290.0 per month. If your actual housing costs are reasonable and necessary, they can be included in your financial analysis. Under IRM 5.15.1.10, the IRS allows for deviations from standard allowances when a taxpayer's specific facts and circumstances warrant it, particularly when no specific standard is provided or actual expenses exceed the standard.
To qualify for Currently Not Collectible (CNC) status in Nebraska, you must demonstrate to the IRS that your allowable monthly expenses meet or exceed your monthly income, leaving you with no disposable income to pay your tax debt. This is primarily done by submitting IRS Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals. The IRS will compare your income against National Standards for Food, Clothing & Other (e.g., $812 for a single person), National Standards for Out-of-Pocket Healthcare (e.g., $75 per person under 65), and Local Standards for Transportation (e.g., $858 for one car, including ownership and operating costs). If your expenses, as determined by these standards and any approved deviations (IRM 5.15.1.10), leave you unable to pay, the IRS may place your account in CNC status, as outlined in IRM 5.16.1.
When the IRS issues a wage levy (Form 668-W) in Custer County, Nebraska, the amount taken from your paycheck is determined by IRS Publication 1494, Table for Figuring Amount Exempt from Levy. This table outlines the monthly amount exempt from levy based on your filing status and the number of dependents you claim. For example, in 2025, a single taxpayer with zero dependents has $1096.67 per month exempt from levy, while a single taxpayer with one dependent has $1680.0 exempt. For a married taxpayer filing jointly with one dependent, the exempt amount is $2286.67. The IRS will levy any portion of your disposable earnings that exceeds this exempt amount. While Nebraska generally follows federal CCPA limits for other garnishments, IRS levies are governed by these specific federal IRS rules.
Since the IRS Collection Financial Standards for Housing and Utilities are 'N/A' for Custer County, Nebraska, taxpayers are not bound by a specific IRS-published number. This situation actually strengthens an argument to allow your actual, reasonable housing expenses. For reference, the HUD Fair Market Rent (FMR) for FY2025 shows a 2-bedroom unit in Custer County at $1290.0. If your actual rent is a necessary expense and is comparable to or even exceeds this FMR, you can submit documentation to the IRS to include it in your allowable expenses. Internal Revenue Manual (IRM) 5.15.1.10 provides guidance on allowing deviations from standard expenses when justified by the taxpayer's specific facts and circumstances, ensuring necessary living costs are accounted for.
The IRS generally has 10 years 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 clock typically starts from the date your tax liability was assessed. If your account is placed in Currently Not Collectible (CNC) status (IRM 5.16.1) due to economic hardship, the collection clock continues to run. Unlike an Offer in Compromise (Form 656) or certain other actions that can 'toll' (pause) the CSED, CNC status does not extend the 10-year collection window. Therefore, if your financial situation remains unchanged and your debt is not paid, the CSED can expire while you are in CNC status, effectively ending the IRS's ability to collect the debt.

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