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IRS Wage Levy & Hardship Relief in Drew County, Arkansas

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

Understanding IRS Collection Standards in Drew County, AR

When facing IRS collection actions in Drew County, Arkansas, understanding the IRS Collection Financial Standards is crucial for protecting your income and assets. The IRS uses these standards, outlined on Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals, 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 a single individual in Drew County, the National Standard for Food, Clothing, and Other Necessities is $812 per month, derived from Bureau of Labor Statistics Consumer Expenditure Survey data. While specific housing allowances are not provided for Drew County, AR, the IRS will consider actual necessary expenses, which can be benchmarked against local data such as HUD Fair Market Rent for a 2-bedroom unit at $880.0. The IRS is mandated by IRC §6343(a)(1)(D) to release a levy if it creates an economic hardship, making these standards vital for your case. These comprehensive standards are compiled from authoritative sources like IRS.gov, the Bureau of Labor Statistics, and the US Census Bureau to ensure a fair assessment of your financial situation.

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

For taxpayers in Drew County, Arkansas, it is important to note that the IRS Collection Financial Standards do not provide a specific local allowance for Housing and Utilities. This means the IRS will consider your actual, reasonable housing and utility expenses, rather than a pre-determined fixed amount. This situation can be advantageous for taxpayers whose housing costs exceed potential standard allowances in other areas. For example, the Department of Housing and Urban Development (HUD) reports a Fair Market Rent (FMR) of $880.0 for a 2-bedroom unit in Drew County for FY2025. If your actual, necessary housing costs are at or near this amount, you may be able to justify this expense to the IRS. Should your housing expenses exceed what the IRS might initially deem reasonable, Internal Revenue Manual (IRM) 5.15.1.10 allows for a deviation from standard allowances due to special circumstances. Presenting evidence of your actual housing costs, especially when compared to local FMR data like the $880.0 for a 2BR, significantly strengthens your argument for a deviation. Unfortunately, specific regional Shelter CPI (Year-over-Year) data is not available for this region to demonstrate recent cost increases, but actual rent figures remain paramount.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS provides National and Local Standards for other essential living expenses to determine your ability to pay. For food, clothing, and other necessities, the National Standards allow $812 per month for a single person, $1478 for a two-person household, $1697 for three, and $1983 for a four-person family, 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 permits $75 per person monthly for those under 65 and $153 per person monthly for those 65 and over, derived from the Medical Expenditure Panel Survey. For transportation in Drew County, AR, the IRS Local Standards provide for both ownership and operating costs. If you own one vehicle, the allowance is $588 for ownership and an additional $270 for operating costs, totaling $858 per month. For two vehicles, the ownership allowance increases to $1176, making the total transportation allowance $1446 ($1176 ownership + $270 operating). These transportation standards are based on Bureau of Labor Statistics data and American Automobile Association operating costs, ensuring a realistic assessment of your essential travel expenses.

Qualifying for Currently Not Collectible (CNC) Status in Arkansas

Achieving Currently Not Collectible (CNC) status in Arkansas, particularly in Drew County, offers crucial relief from IRS enforced collection actions like wage levies (Form 668-W) and bank levies (Form 668-A). To qualify, you must demonstrate to the IRS that your allowable living expenses equal or exceed your monthly income, leaving no funds available to pay your tax debt. This process typically involves submitting Form 433-A, Collection Information Statement, detailing your income, assets, and expenses. For a single filer in Drew County, AR, a calculation could look like this: using a reasonable housing expense derived from HUD FMR (e.g., $880.0 for a 2BR), combined with the National Standards for food ($812), out-of-pocket healthcare ($75 for someone under 65), and transportation ($858 for one car), your total allowable monthly expenses could be approximately $2625.0. If your income does not exceed this amount, 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 levies under IRC §6343. It's important to remember that while CNC status halts active collection, it does not erase your debt, and the 10-year Collection Statute Expiration Date (CSED) under IRC §6502 continues to run, meaning the IRS's time to collect is not extended by CNC status.

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Frequently Asked Questions

For Drew County, AR, the IRS Collection Financial Standards for Housing and Utilities are listed as 'N/A,' meaning there is no predetermined fixed allowance. Instead, the IRS will consider your actual, necessary, and reasonable housing and utility expenses. This often provides more flexibility than areas with set standards. For context, the HUD Fair Market Rent for a 2-bedroom unit in Drew County for FY2025 is $880.0. If your actual rent or mortgage payment is around this figure, or even higher if justified, the IRS should generally allow it. It's crucial to provide documentation for these expenses. If your costs are deemed excessive, you may need to request a deviation from the standard allowances, as permitted under IRM 5.15.1.10, by demonstrating your specific circumstances and necessity.
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 is primarily done by completing and submitting IRS Form 433-A, Collection Information Statement. On this form, you will detail your monthly income, assets, and essential living expenses, including those allowed by the IRS National and Local Standards. For example, a single individual in Drew County might have allowable expenses totaling around $2625.0 per month (e.g., $880.0 for housing, $812 for food, $75 for healthcare, $858 for transportation). If your total allowable expenses equal or exceed your monthly income, the IRS may place your account in CNC status, as outlined in IRM 5.16.1. This status can lead to the immediate release of any existing IRS levies, pursuant to IRC §6343, as continued collection would cause economic hardship.
When the IRS issues a wage levy (Form 668-W) in Drew County, AR, the amount taken from your paycheck is determined by IRS Publication 1494, 'Table for Figuring Amount Exempt from Levy.' This publication outlines specific monthly exemption amounts based on your filing status and number of dependents. For instance, a single individual with zero dependents will have $1096.67 per month exempt from levy in 2025. If that single individual claims one dependent, the exempt amount increases to $1680.0 per month. For a married individual filing jointly with zero dependents, the exempt amount is also $1096.67, but with one dependent, it rises to $2286.67. The IRS can only levy amounts exceeding these thresholds. Arkansas state wage garnishment laws defer to federal limits, which are generally more protective, capping garnishments at 25% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum wage, whichever is less. However, IRS levies are federal and typically take precedence.
If your rent in Drew County, AR, exceeds a typical IRS standard, it's important to remember that the IRS does not provide a specific fixed housing allowance for this area (it's 'N/A'). This means the IRS will consider your actual, necessary, and reasonable housing expenses. For example, if your actual rent is $1000, and the HUD Fair Market Rent for a 2-bedroom unit in Drew County is $880.0 for FY2025, you can still argue for the full $1000 if you can demonstrate it's a necessary expense in your specific situation. Internal Revenue Manual (IRM) 5.15.1.10 explicitly allows for deviations from standard allowances when a taxpayer can prove special circumstances or necessity that justifies higher expenses. You should be prepared to provide documentation, such as a lease agreement and utility bills, to support your actual housing costs and explain why they are reasonable and necessary for you and your family.
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 is established by Internal Revenue Code (IRC) §6502 and typically begins on the date the tax was assessed. It is a strict deadline, and once it expires, the IRS can no longer legally pursue collection of that specific tax liability. While being placed in Currently Not Collectible (CNC) status (IRM 5.16.1) provides immediate relief from active collection efforts, it is critical to understand that CNC status does not extend the CSED. The 10-year clock continues to run even when your account is in CNC status. This makes CNC a powerful strategy, as it allows the statute of limitations to expire without the IRS actively pursuing levies (Form 668-W, 668-A) or other enforcement actions, potentially leading to the debt's extinguishment without payment.

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