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Fort Worth-Arlington, Texas IRS Wage Levy & Hardship Relief

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

Understanding IRS Collection Standards in Fort Worth-Arlington

For taxpayers in the Fort Worth-Arlington, TX HUD Metro FMR Area facing IRS enforced collection, understanding the IRS Collection Financial Standards is paramount. The IRS uses these standards, outlined on IRS.gov and derived from US Census Bureau American Community Survey and Bureau of Labor Statistics data, to calculate a taxpayer's ability to pay, often through Form 433-A, Collection Information Statement. This form helps the IRS determine your disposable income by subtracting necessary living expenses from your gross income. While specific local housing allowances are not published for Fort Worth-Arlington, TX, the IRS applies National Standards for categories like food, allowing a single person $812 per month. If your allowable expenses, including these standards, exceed your income, the IRS may determine that an economic hardship exists, as recognized under IRC §6343(a)(1)(D), potentially leading to levy release or Currently Not Collectible (CNC) status. Accurate reporting on Form 433-A is critical for securing relief.

Fort Worth-Arlington Housing & Utilities Allowance vs. HUD Fair Market Rent

Unlike many regions, the IRS Collection Financial Standards do not publish a specific local housing and utilities allowance for the Fort Worth-Arlington, TX HUD Metro FMR Area (listed as $N/A for all household sizes). In such instances, the IRS typically refers to local housing costs, often using HUD Fair Market Rent (FMR) data to determine a reasonable allowance. For example, the HUD FY2025 Fair Market Rent for a 2-bedroom residence in Fort Worth-Arlington, TX is $2680.0 per month. If your actual housing expenses exceed what the IRS might initially allow, Internal Revenue Manual (IRM) 5.15.1.10 permits a deviation from standard allowances due to special circumstances. This is particularly relevant when local rents, like the $2680.0 for a 2BR, significantly exceed any implicit IRS allowance. While regional Shelter CPI data for this area is not available, the higher HUD FMR provides strong justification for an increased housing allowance, strengthening your argument for an Offer in Compromise or Currently Not Collectible status.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS provides National Standards for essential living expenses. For food, clothing, and other necessities, a single person in Fort Worth-Arlington, TX is allotted $812 per month, while a family of four receives $1983, based on the Bureau of Labor Statistics Consumer Expenditure Survey. Healthcare costs are addressed by National Standards for out-of-pocket medical expenses, allowing $75 per person under 65 and $153 per person 65 and over monthly, derived from the Medical Expenditure Panel Survey. For transportation, the IRS provides Local Standards specific to the region. A taxpayer with one car in Fort Worth-Arlington, TX is allowed $588 for ownership costs and $270 for operating costs, totaling $858 per month. For two cars, the allowance is $1176 for ownership and $270 for operating for the second car, resulting in a total of $1446. These transportation figures are based on Bureau of Labor Statistics data and American Automobile Association operating costs, ensuring realistic expense consideration.

Qualifying for Currently Not Collectible (CNC) Status in Texas

Achieving Currently Not Collectible (CNC) status in Texas means the IRS has determined you lack the ability to pay your tax debt due to financial hardship. To qualify, you must submit Form 433-A, Collection Information Statement, detailing your income, assets, and allowable expenses. The IRS then compares your total monthly income against your total allowable expenses, which include the National and Local Standards discussed. For a single filer in Fort Worth-Arlington, TX, this might include a housing allowance based on HUD FMR (e.g., $2290.0 for a 1-bedroom), plus $812 for food, $75 for healthcare (under 65), and $858 for one-car transportation. If your total allowable expenses exceed your income, the IRS may place your account in CNC status under IRM 5.16.1, which can lead to the release of an IRS wage levy (Form 668-W) or bank levy (Form 668-A) under IRC §6343. Importantly, while in CNC status, the 10-year Collection Statute Expiration Date (CSED) under IRC §6502 continues to run, meaning the time the IRS has to collect your debt is not extended.

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Frequently Asked Questions

For the Fort Worth-Arlington, TX HUD Metro FMR Area, the IRS Collection Financial Standards do not provide a specific fixed housing and utilities allowance; it is listed as $N/A. Instead, the IRS generally refers to local housing costs, often using HUD Fair Market Rent (FMR) data. For instance, the HUD FY2025 Fair Market Rent for a 1-bedroom residence in Fort Worth-Arlington is $2290.0 per month, and a 2-bedroom is $2680.0. When your actual housing costs exceed the standard allowance (or in this case, the implied local cost), you can request a deviation under IRM 5.15.1.10 due to special circumstances, providing documentation to substantiate your higher necessary expenses. This is a critical step in accurately reflecting your true ability to pay.
To qualify for Currently Not Collectible (CNC) status in Texas, you must demonstrate to the IRS that you cannot afford to pay your tax debt without experiencing financial hardship. This process begins by filing Form 433-A, Collection Information Statement, detailing all your income, assets, and monthly expenses. The IRS will compare your total income against your total allowable expenses, which include National Standards for food ($812 for a single person) and healthcare ($75 per person under 65), and Local Standards for transportation ($858 for one car). For housing in Fort Worth-Arlington, TX, the IRS will consider your actual necessary expenses, often benchmarked against HUD FMR (e.g., $2290.0 for a 1-bedroom). If your allowable expenses exceed your income, the IRS may place your account in CNC status under IRM 5.16.1, temporarily halting collection efforts.
If the IRS issues a wage levy (Form 668-W) in Fort Worth-Arlington, TX, the amount taken from your paycheck is determined by specific federal exemption rules, not state garnishment laws, which follow federal CCPA limits (25% of disposable earnings or amount above 30x federal minimum wage). The IRS calculates the exempt amount based on your filing status and number of dependents, as detailed in IRS Publication 1494. For example, a single taxpayer with zero dependents has $1096.67 exempt from levy monthly. A single taxpayer with one dependent has $1680.0 exempt. For a married filing jointly taxpayer with one dependent, the exempt amount is $2286.67. Any income exceeding this exemption can be levied. Understanding these specific amounts is crucial for taxpayers facing an IRS wage levy under IRC §6331.
If your rent in Fort Worth-Arlington, TX exceeds the amount the IRS typically allows, particularly since there's no published IRS Local Housing Standard ($N/A), you have a strong basis to argue for a deviation. The IRS will look to local market rates, such as the HUD FY2025 Fair Market Rent, where a 2-bedroom apartment is $2680.0. If your actual, necessary rent is higher than this, you can request an exception under IRM 5.15.1.10, which allows for deviations from standard allowances in cases of special circumstances. You must provide documentation (e.g., lease agreements, utility bills) to substantiate your higher expenses. Successfully arguing for a higher housing allowance can significantly reduce your calculated disposable income, making it easier to qualify for an Offer in Compromise or Currently Not Collectible status.
The IRS generally has 10 years to collect a tax debt, starting from the date the tax was assessed. This period is known as the Collection Statute Expiration Date (CSED), as outlined in IRC §6502. It's a critical deadline for both the IRS and taxpayers. While the IRS has broad authority to levy wages (IRC §6331) and bank accounts during this period, certain actions can pause or 'suspend' the CSED, such as filing for bankruptcy, submitting an Offer in Compromise (Form 656), or requesting a Collection Due Process hearing. However, being placed in Currently Not Collectible (CNC) status under IRM 5.16.1 does NOT extend the CSED; the collection clock continues to run, which can be a strategic benefit for taxpayers unable to pay. Understanding your CSED is vital for long-term tax resolution planning.

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