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Davis County, Iowa IRS Wage Levy & Hardship Assistance

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

Understanding IRS Collection Standards in Davis County

For taxpayers in Davis County, Iowa, facing IRS enforced collection, understanding the IRS Collection Financial Standards is critical. 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 disposable income when determining ability to pay. This calculation is central to completing Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals. For instance, a single individual in Davis County is generally allowed $812 monthly for food, clothing, and other necessities, based on National Standards. While specific local housing allowances for Davis County are not provided by the IRS, taxpayers must document their necessary housing costs. If your income, after accounting for these allowable expenses, leaves little or no funds available, the IRS may deem you to be experiencing economic hardship, as defined under IRC §6343(a)(1)(D), potentially leading to levy release or Currently Not Collectible (CNC) status.

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

Currently, the IRS Collection Financial Standards do not provide a specific local housing and utilities allowance for Davis County, Iowa, listing these as $N/A. This means taxpayers in Davis County must substantiate their actual, reasonable housing expenses when completing Form 433-A. For comparison, the US Department of Housing & Urban Development (HUD) sets the FY2025 Fair Market Rent (FMR) for Davis County at $1020.0 for a 2-bedroom unit. If your necessary housing costs exceed a reasonable amount as determined by the IRS, or if you need to justify an expense that falls outside standard allowances, you may be able to request a deviation from the National or Local Standards, as outlined in Internal Revenue Manual (IRM) 5.15.1.10. While regional shelter CPI data is not available for this specific region, demonstrating that your actual rent, such as $1020.0 for a 2-bedroom, is a necessary and reasonable expense in Davis County is crucial for a successful deviation argument.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS provides National Standards for Food, Clothing, and Other Living Expenses. For a single person in Davis County, these total $812 monthly, increasing to $1478 for two people, $1697 for three, and $1983 for a four-person household, with an additional $357 for each extra person. These figures are based on the Bureau of Labor Statistics Consumer Expenditure Survey. Healthcare is another critical allowance; the IRS provides a National Standard of $75 per person per month for individuals under 65, and $153 for those 65 and over, derived from the Medical Expenditure Panel Survey. For transportation in Davis County, the IRS Local Standards allow $588 for one car ownership and $270 for operating costs within this region, totaling $858 per month for one vehicle. For two vehicles, the allowance is $1176 for ownership, plus the operating cost, totaling $1446. These transportation figures are based on Bureau of Labor Statistics data and American Automobile Association operating costs.

Qualifying for Currently Not Collectible (CNC) Status in Iowa

Achieving Currently Not Collectible (CNC) status in Iowa means the IRS has determined you lack the financial ability to pay your tax debt, halting enforced collection actions like wage or bank levies. To qualify, you must submit a comprehensive financial statement, typically Form 433-A, detailing your income, assets, and allowable living expenses. The IRS then compares your total income against your total allowable expenses using the National and Local Standards. For example, a single filer in Davis County, Iowa, might have allowable expenses including $1020.0 for housing (using HUD FMR for a 2BR as a reasonable estimate for necessary living expenses), $812 for food, $75 for healthcare (if under 65), and $858 for one car transportation, totaling $2765.0. If your net monthly income is less than this total, you may qualify for CNC. IRM 5.16.1 outlines the procedures for placing an account in CNC status, which can lead to the release of a levy under IRC §6343. It's important to note that while CNC status provides temporary relief, it does not stop the accrual of penalties and interest, and it does not extend the 10-year Collection Statute Expiration Date (CSED) under IRC §6502.

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Frequently Asked Questions

For 2025, the IRS Collection Financial Standards do not specify a local housing and utilities allowance for Davis County, Iowa, listing it as $N/A. This means taxpayers must provide documentation for their actual, necessary housing expenses. For context, the HUD FY2025 Fair Market Rent for a 2-bedroom unit in Davis County is $1020.0. If your housing costs exceed what the IRS might consider reasonable, or if you need to demonstrate a necessary expense, you can request a deviation from standard allowances as per IRM 5.15.1.10. It is crucial to gather all relevant financial documents to support your actual housing costs.
To qualify for Currently Not Collectible (CNC) status in Iowa, you must demonstrate to the IRS that you lack the financial ability to pay your tax debt. This process begins by submitting Form 433-A, Collection Information Statement, detailing your income, assets, and all necessary living expenses. The IRS will compare your documented income against allowable expenses, which include National Standards for food ($812 for a single person), healthcare ($75 per person under 65), and Local Standards for transportation ($858 for one car, ownership + operating). If your income does not exceed your allowable expenses, your account may be placed in CNC status, temporarily halting collection efforts. IRM 5.16.1 provides detailed guidance on CNC procedures, emphasizing the need for comprehensive financial disclosure.
When the IRS issues a wage levy (Form 668-W), the amount taken from your paycheck is determined by IRS Publication 1494, Table for Figuring Amount Exempt from Levy, not a fixed percentage like state garnishments. For 2025, a single taxpayer in Davis County, Iowa, with zero dependents, is exempt from levy up to $1096.67 per month. If that same single taxpayer claims one dependent, their exemption increases to $1680.0 per month. For a married couple filing jointly with one dependent, the exemption is $2286.67 per month. The IRS will levy any wages above these specific, statutorily determined exempt amounts. This levy authority is granted under IRC §6331, allowing the IRS to seize property, including wages, to satisfy a tax liability.
Since the IRS Collection Financial Standards do not provide a specific local housing allowance for Davis County, Iowa ($N/A), your actual, necessary housing expenses are considered. For example, the HUD FY2025 Fair Market Rent for a 2-bedroom apartment in Davis County is $1020.0. If your documented rent or mortgage payment exceeds what the IRS might typically allow in other areas, or if it simply represents a significant portion of your income, you can request a deviation from the standard allowances. IRM 5.15.1.10 specifically addresses situations where a taxpayer's actual necessary expenses, such as rent, are greater than the established standards. You must provide clear documentation and justification that your housing costs are reasonable and essential for your household's well-being.
The IRS generally has 10 years to collect a tax debt, a period known as the Collection Statute Expiration Date (CSED), as outlined in IRC §6502. This 10-year period typically begins from the date the tax was assessed. It is critical to understand that certain actions can pause or extend this collection period, such as filing for bankruptcy, submitting an Offer in Compromise (OIC), or requesting a Collection Due Process (CDP) hearing. However, being placed in Currently Not Collectible (CNC) status does NOT extend the CSED; the 10-year clock continues to run. Strategic management of your tax debt with the CSED in mind can be a vital component of a long-term resolution strategy, potentially leading to the expiration of the debt if the IRS cannot collect it within the statutory timeframe.

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