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Franklin County, Arkansas: Navigating IRS Wage Levy & Hardship Status

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

Understanding IRS Collection Standards in Franklin County, AR

When the IRS seeks to collect delinquent taxes in Franklin County, Arkansas, they evaluate a taxpayer's ability to pay using IRS Collection Financial Standards, which are critical for completing Form 433-A, Collection Information Statement. These standards help determine your disposable income by establishing reasonable monthly living expenses. For a single individual in Franklin County, the National Standard for Food, Clothing & Other is $812 per month, while a family of four can be allowed up to $1983. These figures are derived from Bureau of Labor Statistics (BLS) Consumer Expenditure Survey data. Although specific local housing allowances for Franklin County, AR are currently listed as N/A on IRS.gov Collection Financial Standards, the IRS will consider actual necessary expenses, especially when evaluating economic hardship under IRC §6343(a)(1)(D). These comprehensive standards ensure a fair assessment of a taxpayer's financial capacity, drawing data from the US Census Bureau, BLS, and other reliable sources.

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

Taxpayers in Franklin County, AR facing IRS collection actions must understand how their housing costs are assessed. While the IRS Collection Financial Standards currently list Housing and Utilities allowances for Franklin County, AR as N/A, this does not mean housing costs are ignored. Instead, the IRS will consider actual, reasonable housing and utility expenses. For comparison, the U.S. Department of Housing and Urban Development (HUD) provides Fair Market Rent (FMR) data for Franklin County, AR, indicating a 2-bedroom unit averages $1110.0 per month, and a 1-bedroom unit averages $900.0. If your actual, necessary housing expenses exceed the N/A IRS standard (or if no standard exists, exceed what the IRS deems reasonable without specific guidance), you can argue for a deviation based on your actual costs. Internal Revenue Manual (IRM) 5.15.1.10 permits deviations from national or local standards when justified by the facts and circumstances of the case. This is crucial for taxpayers in Franklin County, AR, as the absence of a specific local standard means justifying actual, necessary expenses is paramount. Regional Shelter CPI data for this region is currently not available from the Bureau of Labor Statistics, making the HUD FMR data a vital benchmark.

Food, Healthcare & Transportation Allowances in Franklin County, AR

Beyond housing, the IRS allows for essential living expenses when determining collectibility in Franklin County, AR. The National Standards for Food, Clothing & Other provide a single person $812 per month, increasing to $1478 for two people, $1697 for three, and $1983 for a family of four, with an additional $357 for each additional person. These figures are based on the Bureau of Labor Statistics Consumer Expenditure Survey. Healthcare is also covered under National Standards, with $75 per month allowed for individuals under 65 and $153 for those 65 and over, per person, derived from the Medical Expenditure Panel Survey. For transportation, Franklin County, AR taxpayers are allowed specific Local Standards. For one owned car, the total monthly allowance is $858, comprising $588 for ownership costs and $270 for operating costs in this region. If a household owns two cars, the total allowance increases to $1446 ($1176 ownership + $270 operating). These transportation standards are based on BLS data and American Automobile Association operating costs, ensuring that necessary travel for work and essential errands is accounted for.

Qualifying for Currently Not Collectible (CNC) Status in Arkansas

Achieving Currently Not Collectible (CNC) status in Arkansas means the IRS has determined you lack the financial ability to pay your tax debt after accounting for necessary living expenses. To qualify, you must submit a detailed financial statement, typically Form 433-A (Collection Information Statement), outlining your income, assets, and expenses. The IRS will compare your total monthly income against your total allowable expenses, using the National and Local Standards discussed. For a single filer in Franklin County, AR, an example calculation of allowable expenses might include $1110.0 for housing (using the HUD FMR for a 2BR unit as a benchmark since local standards are N/A), $812 for food, $75 for healthcare (under 65), and $858 for transportation, totaling $2855.0. If your income does not exceed these necessary expenses, you may qualify for CNC. IRM 5.16.1 outlines the procedures for CNC determinations, emphasizing that the IRS will release a levy if it creates economic hardship, per IRC §6343. While in CNC status, the IRS generally ceases collection activity, but the 10-year Collection Statute Expiration Date (CSED) under IRC §6502 continues to run, meaning CNC status does not extend the time the IRS has to collect your debt.

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Frequently Asked Questions

For Franklin County, AR, the IRS Collection Financial Standards currently list the Housing and Utilities allowance as N/A. This means the IRS does not have a pre-determined standard amount for this specific area. Instead, the IRS will evaluate your actual, necessary housing and utility expenses. For reference, the HUD Fair Market Rent for Franklin County, AR shows a 1-bedroom unit at $900.0 and a 2-bedroom unit at $1110.0 per month. When completing Form 433-A, you must provide documentation for your actual housing costs, and if they are reasonable and necessary, the IRS will generally allow them. You may need to argue for a deviation under IRM 5.15.1.10 if your costs are particularly high but justified.
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 typically involves submitting Form 433-A, Collection Information Statement, detailing all your income, assets, and monthly expenses. The IRS will compare your disposable income against their National and Local Collection Financial Standards. For example, a single person's allowable expenses would include $812 for food and $75 for healthcare, plus transportation allowances of $858 for one car. If your income does not exceed your necessary living expenses, the IRS may place your account in CNC status, halting collection activities. This status is reviewed periodically, and it does not stop interest and penalties from accruing, nor does it extend the 10-year Collection Statute Expiration Date (CSED) under IRC §6502.
The amount the IRS can levy from your paycheck in Franklin County, AR is determined by specific calculations outlined in IRS Publication 1494, not a flat percentage. For 2025, if you are single with zero dependents, the IRS must leave you with $1096.67 per month. If you are single with one dependent, this exempt amount increases to $1680.0 per month. For those married filing jointly with zero dependents, the exempt amount is also $1096.67, but with one dependent, it rises to $2286.67. The IRS serves a wage levy using Form 668-W, Notice of Levy on Wages, Salary, and Other Income, directly to your employer, who then calculates and remits the non-exempt portion of your pay. Arkansas follows federal CCPA limits, which are less restrictive than IRS levies, meaning the IRS can take more than state garnishments.
If your actual rent in Franklin County, AR exceeds the IRS standard, you can still justify your expenses. Since the IRS Collection Financial Standards currently list the Housing and Utilities allowance for Franklin County, AR as N/A, the IRS will consider your actual, necessary expenses. For example, the HUD Fair Market Rent for a 2-bedroom unit in Franklin County is $1110.0. If your rent is higher but reasonable for your family size and local market conditions, you can argue for a deviation from the standard (or lack thereof). Internal Revenue Manual (IRM) 5.15.1.10 allows for deviations when a taxpayer's actual, necessary expenses exceed the established standards. You must provide documentation (lease agreements, utility bills) to substantiate your costs and clearly explain why your specific housing situation is necessary, demonstrating that paying the IRS would create an economic hardship.
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 can pursue various collection actions like wage levies (Form 668-W) and bank levies (Form 668-A) within this period, certain events can pause or extend the CSED. For instance, requesting an Offer in Compromise (Form 656) or filing for bankruptcy can suspend the CSED. Importantly, being placed in Currently Not Collectible (CNC) status due to financial hardship does NOT extend the CSED; the clock continues to run, making CNC a strategic option for taxpayers in Franklin County, AR nearing the expiration of their collection period.

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