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Navigating IRS Wage Levy & Hardship in Day County, South Dakota

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

Understanding IRS Collection Standards in Day County, SD

When the IRS assesses your ability to pay a tax debt, they utilize Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals. This crucial document helps the IRS determine your disposable income by comparing your monthly income against a set of IRS-mandated National and Local Collection Financial Standards. For residents of Day County, South Dakota, understanding these standards is paramount. While there isn't a specific IRS Local Housing & Utilities Standard listed for Day County, taxpayers must report actual, reasonable expenses. The National Standards, however, provide a baseline for essential living costs, such as food, with a single person allowed $812 per month, escalating to $1983 for a family of four. These standards are foundational in establishing whether an economic hardship exists, as defined by IRC §6343(a)(1)(D), which can lead to a levy release. This data is rigorously derived from IRS.gov, Bureau of Labor Statistics (BLS) Consumer Expenditure Surveys, and U.S. Census Bureau American Community Surveys, ensuring its authoritative basis.

Day County, SD Housing & Utilities Allowance vs. HUD Fair Market Rent

For residents of Day County, South Dakota, the IRS Collection Financial Standards currently do not specify a Local Housing & Utilities Allowance, showing as $N/A across all household sizes. This means the IRS will evaluate your actual, reasonable housing expenses. In contrast, the US Department of Housing & Urban Development (HUD) provides FY2025 Fair Market Rent (FMR) data for Day County, indicating a 2-bedroom unit averages $930.0 per month, with a 1-bedroom at $750.0 and a studio at $640.0. If your actual housing expenses exceed the general reasonableness, or if there were an IRS standard and your rent surpassed it, you would need to argue for a deviation from the standard, a process outlined in Internal Revenue Manual (IRM) 5.15.1.10. This deviation argument is strengthened when HUD FMR data demonstrates higher prevailing market rates. Unfortunately, regional shelter CPI data from the Bureau of Labor Statistics is not available for Day County, SD, to show year-over-year changes in housing costs, making the HUD FMR an even more vital benchmark for establishing reasonable housing expenses.

Food, Healthcare & Transportation Allowances for Day County, SD

Beyond housing, the IRS provides National Standards for essential living expenses. For Day County, SD residents, the monthly food allowance for a single person is $449, contributing to a total National Standard of $812 for one person, which covers food, housekeeping, apparel, personal care, and miscellaneous expenses. For a family of four, this total rises to $1983, based on the Bureau of Labor Statistics Consumer Expenditure Survey. Healthcare is another critical component, with an allowance of $75 per person per month for those under 65, and $153 for those 65 and over, derived from the Medical Expenditure Panel Survey. For transportation in Day County, the IRS Local Standards (based on BLS data and American Automobile Association costs) permit $588 per month for one owned car (ownership costs) plus an additional $270 for operating costs in this region, totaling $858 per month for one vehicle. For two owned cars, the total allowance is $1446, reflecting $1176 for ownership and $270 for operating costs per vehicle.

Qualifying for Currently Not Collectible (CNC) Status in South Dakota

For taxpayers in Day County, South Dakota, facing financial hardship, Currently Not Collectible (CNC) status offers a temporary reprieve from IRS enforced collection actions. To qualify, you must demonstrate to the IRS that your allowable monthly living expenses equal or exceed your monthly income, leaving no disposable income to pay your tax debt. This determination is made after submitting a comprehensive Form 433-A. For example, a single filer in Day County with actual, reasonable housing expenses of $930.0 (aligned with HUD FMR for a 2BR), a National Standard food/other allowance of $812, healthcare costs of $75 (under 65), and transportation expenses of $858 (one car total) would have total allowable expenses of $2675.0. If their monthly income is less than or equal to this amount, they may qualify for CNC. IRM 5.16.1 outlines the procedures for placing an account into CNC status, and once granted, the IRS generally ceases collection attempts and may release existing levies under IRC §6343. Importantly, while CNC offers relief, it does not stop the accrual of penalties and interest, nor does it extend the Collection Statute Expiration Date (CSED), which is typically 10 years from the date of assessment under IRC §6502.

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Frequently Asked Questions

For Day County, South Dakota, the IRS Collection Financial Standards for Housing & Utilities are currently listed as $N/A for all household sizes. This means the IRS will evaluate your actual, reasonable housing expenses when determining your ability to pay. To support your reported expenses, you can reference local market data. For instance, the HUD FY2025 Fair Market Rent for Day County is $640.0 for a studio, $750.0 for a 1-bedroom, and $930.0 for a 2-bedroom apartment. If your actual, necessary housing costs exceed a typical amount, you may need to provide documentation and argue for a deviation from standard allowances, as permitted under IRM 5.15.1.10.
To qualify for Currently Not Collectible (CNC) status in South Dakota, you must demonstrate to the IRS that you lack the financial capacity to pay your tax debt after covering necessary living expenses. 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 total monthly income against your allowable monthly expenses, which include National Standards (e.g., $812 for a single person's food, clothing, and other), Local Standards for transportation ($858 for one car in Day County, SD), and actual reasonable housing expenses (e.g., a 2-bedroom at $930.0 based on HUD FMR). If your total allowable expenses equal or exceed your income, leaving no funds for tax payment, your account may be placed into CNC status under IRM 5.16.1.1.
If the IRS issues a wage levy (Form 668-W) to your employer in Day County, SD, the amount they can take is determined by IRS Publication 1494, Table for Figuring Amount Exempt from Levy. This table specifies a portion of your wages that is exempt from levy, ensuring you have funds for basic living expenses. For example, a single individual with no dependents in 2025 is exempt for $1096.67 per month. A married individual filing jointly with one dependent is exempt for $2286.67 per month. Only the amount exceeding this exemption can be levied. State wage garnishment laws in South Dakota follow federal CCPA limits (25% of disposable earnings or the amount above 30 times the federal minimum wage), but IRS levies often take precedence and are typically more aggressive, adhering strictly to the Pub 1494 exemption amounts.
In Day County, South Dakota, there is no specific IRS Local Housing & Utilities Standard listed, meaning the IRS evaluates your actual, reasonable housing expenses. If your actual rent, for example, is $930.0 for a 2-bedroom (consistent with HUD FY2025 Fair Market Rent) and this amount is necessary and justifiable, the IRS should allow it. However, if your rent is significantly higher than what is considered reasonable for your area and household size, you would need to provide a compelling argument and documentation to the IRS. Internal Revenue Manual (IRM) 5.15.1.10 outlines the process for requesting a deviation from established standards, allowing you to justify necessary expenses that exceed standard allowances or, in this case, to affirm the reasonableness of your actual housing costs despite the lack of a specific standard.
The IRS generally has 10 years from the date a tax liability is assessed to collect the debt. This period is known as the Collection Statute Expiration Date (CSED), as mandated by Internal Revenue Code (IRC) §6502. While the CSED is typically 10 years, certain events can pause or 'toll' this period, effectively extending the time the IRS has to collect. These events include filing for bankruptcy, requesting a Collection Due Process (CDP) hearing, or submitting an Offer in Compromise (Form 656). Placing your account into Currently Not Collectible (CNC) status, as discussed in IRM 5.16.1, does not extend the CSED. However, it temporarily stops collection actions, allowing the 10-year clock to continue running, making CNC a strategic option for taxpayers approaching their CSED.

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