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Dewey County, South Dakota IRS Wage Levy & Hardship Relief

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

Understanding IRS Collection Standards in Dewey County, SD

Taxpayers in Dewey County, South Dakota facing IRS enforced collection actions, such as wage or bank levies, must understand how the IRS calculates their ability to pay. The IRS uses a detailed financial analysis, often initiated with Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals, to determine a taxpayer's disposable income. This calculation relies on IRS National and Local Standards for allowable living expenses. For instance, the National Standards for Food, Clothing, and Other Expenses allow a single individual in Dewey County $812 per month, while a family of four can claim $1,983. These figures are derived from Bureau of Labor Statistics (BLS) Consumer Expenditure Survey data. Although specific local housing standards are not provided for Dewey County on IRS.gov, the IRS acknowledges economic hardship under IRC §6343(a)(1)(D) if a levy prevents a taxpayer from meeting basic living expenses. These standards are foundational for negotiating resolutions and are regularly updated from sources like the US Census Bureau, BLS, and IRS.gov Collection Financial Standards.

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

For Dewey County, South Dakota, the IRS Collection Financial Standards do not provide specific local housing and utility allowances, indicating 'N/A' for all household sizes. In such situations, taxpayers must demonstrate their actual necessary housing expenses. A valuable benchmark for housing costs in Dewey County is the US Department of Housing & Urban Development (HUD) Fair Market Rent (FMR) data, which lists a 2-bedroom unit at $950.0 per month for FY2025. If a taxpayer's actual housing costs exceed the non-existent IRS standard (or exceed a reasonable amount in the absence of a standard), they can request a deviation from the standard under Internal Revenue Manual (IRM) 5.15.1.10. This deviation process allows the IRS to consider higher necessary expenses, especially when substantiated by local market data like HUD FMR. Emphasizing that your actual, necessary rent of, for example, $950.0 for a 2-bedroom property, is a legitimate expense strengthens your argument for hardship relief. Unfortunately, regional Shelter CPI data for Dewey County is not available from the Bureau of Labor Statistics for a year-over-year comparison.

Food, Healthcare & Transportation Allowances in South Dakota

Beyond housing, the IRS allows specific amounts for other essential living expenses. For food, clothing, and other necessities, the National Standards are critical: a single individual in Dewey County, SD, can claim $812 per month, while a household of four can claim $1,983. These amounts are meticulously calculated from the Bureau of Labor Statistics Consumer Expenditure Survey. Healthcare is another vital allowance; the IRS permits $75 per person per month for those under 65 and $153 per person per month for those 65 and over, based on the Medical Expenditure Panel Survey. For transportation in Dewey County, the IRS Local Standards ( region) allow for both ownership and operating costs. A taxpayer with one car can claim $588 for ownership costs plus $270 for operating costs, totaling $858 per month. For two cars, this increases to $1,176 for ownership, plus a single $270 for operating costs, totaling $1,446. These figures are derived from BLS data and American Automobile Association (AAA) operating cost analyses, ensuring a comprehensive picture of essential living expenses.

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

Achieving Currently Not Collectible (CNC) status under Internal Revenue Manual (IRM) 5.16.1 is a crucial form of hardship relief for taxpayers in Dewey County, South Dakota. To qualify, you must demonstrate to the IRS that after accounting for all allowable living expenses, you have no disposable income to make payments on your tax debt. This process typically begins by submitting Form 433-A, Collection Information Statement, detailing your income, assets, and expenses. For a single filer in Dewey County, an example calculation for allowable expenses could be: $950.0 for housing (using HUD FMR for a 2BR as a reasonable proxy given the 'N/A' IRS local standard), $812 for food/clothing/other, $75 for healthcare, and $858 for one-car transportation, totaling $2,695.0 per month. If your net income is less than or equal to this total, you may qualify for CNC. When CNC status is granted, the IRS generally ceases collection activities, including the release of wage levies (Form 668-W) and bank levies (Form 668-A) under IRC §6343(a)(1)(D). Importantly, while CNC status pauses collection, it does not extend the Collection Statute Expiration Date (CSED), which is generally 10 years from the assessment date under IRC §6502. This means the 10-year clock continues to run, potentially leading to the debt expiring if the IRS cannot resume collection before the CSED.

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Frequently Asked Questions

For Dewey County, South Dakota, the IRS Collection Financial Standards for housing and utilities are currently listed as 'N/A' for all household sizes. This means the IRS does not provide a specific fixed amount for this region. In such cases, taxpayers must substantiate their actual, necessary housing expenses. The US Department of Housing & Urban Development (HUD) provides Fair Market Rent (FMR) data, which can serve as a reasonable benchmark. For example, the HUD FMR for a 2-bedroom unit in Dewey County for FY2025 is $950.0 per month. If your actual rent is at or below this figure, it is generally considered reasonable. If your necessary housing expenses exceed a reasonable amount, you can request a deviation from the standard under Internal Revenue Manual (IRM) 5.15.1.10, providing documentation to support your costs.
To qualify for Currently Not Collectible (CNC) status in South Dakota, you must demonstrate to the IRS that you lack the financial ability to pay your tax debt after meeting your basic living expenses. This is primarily done by completing and 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 are determined by National and Local Standards. For example, a single filer in Dewey County might have allowable expenses including $950.0 for housing (based on HUD FMR), $812 for food/clothing/other, $75 for healthcare, and $858 for transportation, totaling $2,695.0. If your net monthly income is equal to or less than your total allowable expenses, you may be placed into CNC status under IRM 5.16.1. This status typically leads to the release of any existing wage or bank levies under IRC §6343(a)(1)(D).
When the IRS issues a wage levy (Form 668-W) in Dewey County, South Dakota, the amount taken from your paycheck is determined by specific federal rules outlined in IRS Publication 1494 (2025). The IRS is required to leave you with a certain amount exempt from levy, which varies based on your filing status and number of dependents. For a single individual with zero dependents, the monthly exempt amount is $1,096.67. For a single individual with one dependent, this increases to $1,680.0 per month. For those married filing jointly with zero dependents, the exemption is also $1,096.67, while with one dependent, it rises to $2,286.67 per month. Any earnings above this exempt amount are subject to the levy. State wage garnishment laws in South Dakota typically follow federal Consumer Credit Protection Act (CCPA) limits, which allow garnishment of 25% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum wage, whichever is less. However, IRS levies supersede most state garnishment limits.
Given that the IRS Collection Financial Standards list 'N/A' for housing and utilities in Dewey County, SD, taxpayers are not bound by a specific IRS standard amount for rent. Instead, the IRS will evaluate the reasonableness of your actual, necessary housing expenses. If your rent, for instance, aligns with the HUD Fair Market Rent for the area (e.g., $950.0 for a 2-bedroom unit in FY2025), it is generally considered reasonable. If your necessary housing costs are higher than what the IRS might typically allow in other regions, or if they seem high compared to local benchmarks, you can request a deviation from the standard. Internal Revenue Manual (IRM) 5.15.1.10 permits the IRS to allow higher expenses when a taxpayer can substantiate that these costs are necessary and reasonable. Providing documentation such as lease agreements, utility bills, and proof of local market rates can significantly strengthen your argument for allowing these higher expenses as part of your financial analysis.
The IRS generally has 10 years to collect a tax debt from the date of assessment, known as the Collection Statute Expiration Date (CSED), as defined by Internal Revenue Code (IRC) §6502. This 10-year period is a critical deadline for both the taxpayer and the IRS. While collection actions like wage levies (Form 668-W) and bank levies (Form 668-A) can be initiated during this time, certain events can pause or extend the CSED. For example, filing for bankruptcy, signing an Offer in Compromise (Form 656), or requesting a Collection Due Process (CDP) hearing can suspend the CSED. However, being placed into Currently Not Collectible (CNC) status under IRM 5.16.1 generally does NOT extend the CSED. This means if you are in CNC status, the 10-year clock continues to run, and the debt may expire if the IRS cannot resume collection before the CSED. Understanding your CSED is crucial for developing an effective tax resolution strategy in Dewey County, SD.

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