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Navigating IRS Wage Levy and Hardship in Fallon County, Montana

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

Understanding IRS Collection Standards in Fallon County

When facing IRS enforced collection actions in Fallon County, Montana, the Internal Revenue Service (IRS) assesses a taxpayer's ability to pay using a detailed financial analysis documented on Form 433-A, Collection Information Statement. This crucial form helps the IRS determine your disposable income by comparing your gross income against allowable living expenses, which are categorized into National and Local Standards. For a single individual in Fallon County, the IRS National Standards allow $812 monthly for Food, Clothing, and Other necessary expenses, derived from Bureau of Labor Statistics data. While specific IRS Local Standards for Housing & Utilities are not provided for Fallon County, the IRS relies on its National Standards for Food, Clothing, and Healthcare, and Local Standards for Transportation. These standards are critical in establishing whether a taxpayer qualifies for an Offer in Compromise or Currently Not Collectible (CNC) status under IRC §6343(a)(1)(D) due to economic hardship. This data, foundational to IRS collection decisions, is sourced from IRS.gov Collection Financial Standards, which integrates information from the US Census Bureau, American Community Survey, and Bureau of Labor Statistics.

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

For residents of Fallon County, Montana, the IRS Collection Financial Standards do not specify a Local Standard for Housing & Utilities, indicating a value of $N/A across all household sizes. In such instances, the IRS may consider actual necessary expenses, especially when they are reasonable and substantiated. For context, the HUD FY2025 Fair Market Rent (FMR) data for Fallon County indicates a 2-bedroom unit costs $1430.0 per month. If a taxpayer's actual housing expenses exceed the IRS's non-existent local standard, or if the FMR for their required housing size is substantially higher, they may argue for a deviation from standard allowances. Internal Revenue Manual (IRM) 5.15.1.10 outlines the procedures for granting such deviations, requiring taxpayers to provide compelling justification and documentation. This situation highlights a critical opportunity for Fallon County taxpayers to present their actual, necessary housing costs. Unfortunately, regional Shelter CPI data for Fallon County is not available from the Bureau of Labor Statistics, which could otherwise provide additional context on local housing cost trends.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS provides National Standards for essential living expenses. For Fallon County residents, the National Standards for Food, Clothing, and Other items range from $812 for a single person to $1983 for a family of four, with an additional $357 for each additional person, as determined by the Bureau of Labor Statistics Consumer Expenditure Survey. Healthcare costs are addressed by National Standards for Out-of-Pocket Healthcare, allowing $75 per person monthly for those under 65 and $153 for those 65 and over, based on data from the Medical Expenditure Panel Survey. For transportation, Fallon County residents can claim Local Standards. For a household with one car, the allowance is $588 for ownership costs and $270 for operating costs, totaling $858 per month. For two cars, the total allowance is $1446 ($1176 ownership + $270 operating). These figures, derived from Bureau of Labor Statistics data and American Automobile Association operating costs, are crucial in calculating a taxpayer's ability to pay and their eligibility for IRS hardship relief.

Qualifying for Currently Not Collectible (CNC) Status in Montana

Achieving Currently Not Collectible (CNC) status in Fallon County, Montana, means the IRS has determined you lack the financial ability to pay your tax debt. To qualify, you must submit a detailed Form 433-A, Collection Information Statement, outlining your income, assets, and necessary living expenses. The IRS then compares your total monthly income against the sum of your allowable expenses using the National and Local Standards. For a single filer in Fallon County, a hypothetical calculation might include: $1430.0 for housing (using the HUD FMR for a 2BR as a reasonable estimate in the absence of an IRS local standard), $812 for food and other necessities, $75 for healthcare (under 65), and $858 for transportation, totaling $3125.0 in monthly allowable expenses. If your income does not exceed this total, you may qualify for CNC. IRM 5.16.1 outlines the procedures for CNC determinations, and qualifying for CNC can lead to the release of an existing levy under IRC §6343. Importantly, while CNC status pauses active collection, it does not stop interest and penalties from accruing, nor does it extend the Collection Statute Expiration Date (CSED), which, per IRC §6502, is generally 10 years from the date of assessment.

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Frequently Asked Questions

For Fallon County, Montana, the IRS Collection Financial Standards currently list 'N/A' for the Local Standard Housing & Utilities allowance across all household sizes. This means the IRS does not provide a specific predetermined amount for housing costs in this area. Instead, taxpayers in Fallon County would need to substantiate their actual, reasonable housing expenses. For reference, the HUD FY2025 Fair Market Rent for a 2-bedroom unit in Fallon County is $1430.0 per month. If your actual, necessary housing costs are in line with or below the local FMR, you would present these figures to the IRS on Form 433-A for consideration. If your housing costs are higher, you may need to argue for a deviation based on IRM 5.15.1.10.
To qualify for Currently Not Collectible (CNC) status in Montana, you must demonstrate to the IRS that you lack the financial ability to pay your tax debt. This process begins by accurately completing and submitting IRS Form 433-A, Collection Information Statement, detailing all your income, assets, and monthly necessary living expenses. The IRS will then compare your total income against their allowable expenses, which include National Standards (e.g., $812 for a single person's food and other necessities) and Local Standards (e.g., $858 for one-car transportation in Fallon County). If your allowable expenses meet or exceed your monthly income, leaving no disposable income for tax payments, the IRS may place your account in CNC status. This decision is guided by IRM 5.16.1. Qualifying for CNC can lead to the release of an IRS levy under IRC §6343, providing temporary relief from collection actions.
When the IRS issues a wage levy (Form 668-W) in Fallon County, Montana, they cannot take your entire paycheck. Federal law, as outlined in IRS Publication 1494, Table for Figuring Amount Exempt from Levy, protects a portion of your wages. For 2025, the monthly exempt amount for a single taxpayer with zero dependents is $1096.67. If that single taxpayer has one dependent, the exempt amount increases to $1680.0. For a married couple filing jointly with zero dependents, the exempt amount is also $1096.67, while with one dependent, it rises to $2286.67. The IRS calculates the non-exempt portion of your pay, and your employer is legally required to send that amount to the IRS. This protection ensures you retain sufficient funds for basic living expenses, differentiating IRS levies from some state wage garnishments which typically follow federal CCPA limits (25% of disposable earnings or amount above 30x federal minimum wage).
If your rent in Fallon County, Montana, exceeds the IRS's established standards, particularly since the IRS Collection Financial Standards show 'N/A' for local housing allowances in this area, you have a strong argument for a deviation. The IRS recognizes that sometimes actual necessary expenses are higher than their standard allowances. For example, the HUD FY2025 Fair Market Rent for a 2-bedroom apartment in Fallon County is $1430.0. If your rent is at or below this figure, you should present your actual rental costs on Form 433-A. If your rent is higher due to specific, unavoidable circumstances (e.g., medical necessity, lack of affordable alternatives), you can request a deviation. IRM 5.15.1.10 provides the framework for such requests, requiring thorough documentation and justification for why your higher expenses are necessary and reasonable. This is a critical step in demonstrating economic hardship under IRC §6343(a)(1)(D).
The IRS generally has 10 years to collect a tax debt, a period known as the Collection Statute Expiration Date (CSED), as defined by Internal Revenue Code (IRC) §6502. This 10-year clock typically starts from the date the tax was assessed. While the IRS is pursuing collection, certain actions can pause or extend this 10-year period, such as filing for bankruptcy, submitting an Offer in Compromise (Form 656), or requesting a Collection Due Process (CDP) hearing. However, being placed in Currently Not Collectible (CNC) status, as outlined in IRM 5.16.1, generally does not extend the CSED. Although CNC status temporarily halts active collection efforts like wage levies (Form 668-W) or bank levies (Form 668-A) due to economic hardship, the 10-year clock continues to run. This means that if the CSED expires while your account is in CNC status, the IRS loses its legal authority to collect the tax debt.

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