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Dallas County, Arkansas IRS Wage Levy & Hardship Relief

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

Understanding IRS Collection Standards in Dallas County, AR

For taxpayers in Dallas County, Arkansas facing IRS collection actions, understanding the IRS Collection Financial Standards is crucial. The IRS uses these standards, outlined on Form 433-A, Collection Information Statement, to determine your ability to pay your tax debt. Your disposable income is calculated by subtracting allowable National and Local Standards from your gross income. For instance, the National Standard for food and clothing for a single person is $812 per month, derived from Bureau of Labor Statistics (BLS) Consumer Expenditure Survey data. While Dallas County, AR does not have a specific local housing standard, the IRS will evaluate your actual necessary living expenses. If your allowable expenses exceed your income, the IRS may determine you are experiencing economic hardship, as defined under Internal Revenue Code (IRC) §6343(a)(1)(D), potentially leading to a Currently Not Collectible (CNC) status. This data is rigorously sourced from IRS.gov, the BLS, and US Census Bureau American Community Survey data.

Dallas County, AR Housing & Utilities Allowance vs. HUD Fair Market Rent

Dallas County, Arkansas currently does not have a specific IRS Local Standard for Housing and Utilities listed on IRS.gov. In such cases, the IRS evaluates actual, necessary housing expenses. For comparison, the US Department of Housing & Urban Development (HUD) FY2025 Fair Market Rent (FMR) data for Dallas County, AR indicates a 2-bedroom unit has an FMR of $900.0 per month. If your actual, necessary housing expenses exceed what the IRS might typically allow or what is considered reasonable for your household size, you can request a deviation from the standard. Internal Revenue Manual (IRM) 5.15.1.10 permits the IRS to allow actual necessary expenses that exceed the established standards, provided they are properly substantiated. This deviation process is vital for taxpayers whose housing costs are higher than average. While regional shelter Consumer Price Index (CPI) data is not available for this specific region to show year-over-year changes, the HUD FMR data provides a strong benchmark for local housing costs.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS allows for other essential living expenses based on National and Local Standards. For food, clothing, and other necessities, a single person in Dallas County, AR is allowed $812 per month, while a family of four can claim $1983 per month. These National Standards are derived from the Bureau of Labor Statistics Consumer Expenditure Survey. Healthcare expenses are also standardized: individuals under 65 are allowed $75 per month, and those 65 and over are allowed $153 per month, per person. These figures are based on the Medical Expenditure Panel Survey. For transportation, Dallas County, AR residents can claim a Local Standard of $588 per month for one owned car, plus an operating cost of $270 per month for the region, totaling $858 per month for a single vehicle. For two owned cars, the allowance increases to $1176 for ownership, plus the $270 operating cost, for a total of $1446. These transportation allowances are based on BLS data and American Automobile Association operating costs.

Qualifying for Currently Not Collectible (CNC) Status in Arkansas

To qualify for Currently Not Collectible (CNC) status in Dallas County, Arkansas, you must demonstrate to the IRS that you lack the financial ability to pay your tax debt. This process begins with filing Form 433-A, Collection Information Statement, which details your income, assets, and expenses. The IRS will compare your total monthly income against your total allowable monthly expenses, using the National and Local Collection Financial Standards. For example, a single filer in Dallas County, AR might claim $640.0 for a Studio apartment based on HUD FMR, plus $812 for food, $75 for healthcare (under 65), and $858 for one car transportation, totaling $2385.0 in basic allowable expenses. If your income does not exceed this total, you may qualify for CNC status. IRM 5.16.1 outlines the procedures for placing an account in CNC status, which means the IRS will temporarily cease active collection efforts. A CNC determination can also lead to the release of an existing levy under IRC §6343. It's important to note that CNC status does not extend the Collection Statute Expiration Date (CSED) under IRC §6502, which is generally 10 years from the tax assessment date.

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Frequently Asked Questions

For Dallas County, Arkansas, the IRS Collection Financial Standards do not list a specific local housing allowance for 2025. In situations where a specific local standard is not provided, the IRS will typically evaluate a taxpayer's actual, necessary housing and utility expenses. However, these expenses must be reasonable and substantiated. For context, the HUD FY2025 Fair Market Rent (FMR) for Dallas County, AR indicates a Studio apartment at $640.0, a 1-bedroom at $690.0, and a 2-bedroom at $900.0 per month. If your actual, necessary housing costs exceed what the IRS considers reasonable, or if they are higher than the general standards for your area, you may be able to request a deviation from the standard, as permitted by IRM 5.15.1.10, with proper documentation.
To qualify for Currently Not Collectible (CNC) status in Arkansas, you must demonstrate to the IRS that you lack the financial ability to pay your tax debt. This process involves submitting Form 433-A, Collection Information Statement, which provides a detailed breakdown of your income, assets, and monthly living expenses. The IRS then compares your total monthly income to your total allowable monthly expenses, using their National and Local Collection Financial Standards. For example, a single individual in Dallas County, AR would be allowed $812 for food, clothing, and other items, $75 for healthcare (if under 65), and $858 for one car transportation. If this calculation shows you have no disposable income, or even a negative amount, the IRS may place your account in CNC status under IRM 5.16.1. This temporarily halts active collection efforts and can lead to a levy release under IRC §6343.
When the IRS issues a wage levy (Form 668-W, Notice of Levy on Wages, Salary, and Other Income) in Dallas County, AR, they are legally permitted to seize a portion of your disposable earnings. However, a significant portion of your income is protected by law. The exact exempt amount is determined by your filing status and the number of dependents you claim, as detailed in IRS Publication 1494, Table for Figuring Amount Exempt from Levy. For 2025, a single individual with zero dependents has a monthly exempt amount of $1096.67, while a single individual with one dependent is exempt for $1680.0 per month. For a married individual filing jointly with zero dependents, the exempt amount is also $1096.67, increasing to $2286.67 with one dependent. Only the income exceeding this exempt amount is subject to the levy, authorized under IRC §6331. Arkansas state wage garnishment laws follow federal CCPA limits, but IRS levies supersede these.
If your rent in Dallas County, AR exceeds the IRS's unlisted housing standard, you can still argue for the full allowance of your actual, necessary housing expenses. Since Dallas County, AR does not have a specific housing allowance listed in the IRS Collection Financial Standards, the IRS will review your actual expenses. For reference, the HUD FY2025 Fair Market Rent for a 2-bedroom unit in Dallas County, AR is $900.0. If your housing costs are higher due to family size, local market conditions, or other necessary factors, you can request a deviation. IRM 5.15.1.10 explicitly allows for taxpayers to claim actual, necessary expenses that exceed the standard amounts, provided these expenses are fully documented and substantiated. It is crucial to provide bank statements, lease agreements, and utility bills to support your claim, which can strengthen your case for a higher allowable expense.
The IRS generally has 10 years to collect a tax debt, a period known as the Collection Statute Expiration Date (CSED). This 10-year period typically begins from the date the tax was assessed. This is established by Internal Revenue Code (IRC) §6502. However, certain actions can 'toll' or pause this 10-year clock. For example, submitting an Offer in Compromise (Form 656), requesting a Collection Due Process (CDP) hearing, or filing for bankruptcy can temporarily suspend the CSED. It is critical to understand that being placed in Currently Not Collectible (CNC) status under IRM 5.16.1 does NOT extend the CSED. For taxpayers with limited ability to pay, strategically entering CNC status can be a viable strategy to allow the CSED to expire without the IRS actively collecting, potentially leading to the extinguishment of the tax liability once the statute runs out.

Sources & Methodology