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IRS Wage Levy & Hardship Relief in Franklin County, Illinois

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

Understanding IRS Collection Standards in Franklin County, IL

When the IRS evaluates a taxpayer's ability to pay, particularly during an enforced collection action such as a wage levy (Form 668-W) or bank levy (Form 668-A), they utilize specific financial guidelines known as Collection Financial Standards. These standards, documented on IRS Form 433-A, Collection Information Statement, help determine a taxpayer's disposable income. For Franklin County, Illinois residents, the IRS applies National Standards for categories like Food, Clothing & Other, and Out-of-Pocket Healthcare, alongside Local Standards for Transportation. While a specific local housing standard is not provided for Franklin County, taxpayers must substantiate their actual housing and utility expenses, which are then reviewed for reasonableness. The goal is to identify if an economic hardship exists, as defined by IRC §6343(a)(1)(D), which could warrant a levy release or Currently Not Collectible (CNC) status. These critical figures are derived from authoritative sources including IRS.gov, the Bureau of Labor Statistics (BLS), and the U.S. Census Bureau.

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

For taxpayers in Franklin County, Illinois, the IRS does not publish a specific Local Standard for Housing and Utilities. This means the IRS will consider your actual, reasonable housing expenses when determining your ability to pay. To assess reasonableness, the IRS often compares reported expenses to local economic data. For instance, the HUD FY2025 Fair Market Rent for a 2-bedroom unit in Franklin County is $920.0 per month. If your actual rent exceeds this amount, or if you believe your necessary housing expenses are higher than what the IRS might initially allow based on generalized data, you have the right to request a deviation from the standard. Internal Revenue Manual (IRM) 5.15.1.10 outlines the process for allowing such deviations when necessary living expenses exceed the standard amounts due to unique circumstances. This can be a crucial point for taxpayers in Franklin County, IL, especially since regional shelter Consumer Price Index (CPI) data is not available for this specific area to provide a comparative economic context for rising housing costs.

Food, Healthcare & Transportation Allowances for Franklin County, IL Taxpayers

Beyond housing, the IRS allows specific amounts for other essential living expenses for Franklin County, IL residents. Under the National Standards, a single taxpayer is allowed $812 per month for Food, Clothing & Other, while a family of four can claim $1983. This includes $449 for Food, $44 for Housekeeping supplies, $99 for Apparel and services, $45 for Personal care products, and $175 for Miscellaneous items for a single person, all based on the Bureau of Labor Statistics Consumer Expenditure Survey. For healthcare, the National Standards allow $75 per person per month for those under 65 and $153 for those 65 and over, derived from the Medical Expenditure Panel Survey. Transportation is covered by Local Standards for Illinois, allowing $588 for the ownership costs of one car and an additional $270 for operating costs in the region, totaling $858 per month for one vehicle. These figures are based on Bureau of Labor Statistics data and American Automobile Association operating costs, providing a detailed framework for allowable expenses.

Qualifying for Currently Not Collectible (CNC) Status in Illinois

Achieving Currently Not Collectible (CNC) status can provide significant relief for Franklin County, IL taxpayers facing severe financial hardship. To qualify, you must demonstrate to the IRS that your allowable monthly expenses equal or exceed your monthly income, leaving no disposable income to pay your tax debt. This determination is made using IRS Form 433-A, Collection Information Statement. For example, a single taxpayer in Franklin County, IL, with a reasonable actual housing expense of $920.0 (based on HUD FMR for a 2BR), $812 for Food, Clothing & Other, $75 for Out-of-Pocket Healthcare, and $858 for Transportation (1 car ownership and operating) would have total allowable expenses of $2665.0 per month. If their gross income does not exceed this amount, they may qualify for CNC. IRM 5.16.1 outlines the procedures for placing an account in CNC status, which typically results in the release of levies under IRC §6343. Importantly, while in CNC status, the IRS generally stops collection efforts, but the 10-year Collection Statute Expiration Date (CSED) under IRC §6502 continues to run, meaning the debt could eventually expire without being paid.

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Frequently Asked Questions

For Franklin County, Illinois, the IRS does not provide a specific local housing standard. Instead, taxpayers must document their actual, necessary housing and utility expenses. The IRS will review these reported amounts for reasonableness, often comparing them to local economic data such as the HUD FY2025 Fair Market Rent. For example, the FMR for a 2-bedroom unit in Franklin County is $920.0 per month. If your actual expenses exceed typical local rates, you can request a deviation, as outlined in IRM 5.15.1.10, by providing compelling evidence that your higher expenses are necessary and reasonable given your circumstances. This requires detailed financial disclosure on Form 433-A.
To qualify for Currently Not Collectible (CNC) status in Illinois, you must demonstrate to the IRS that you lack the financial capacity to pay your tax debt. This involves submitting IRS Form 433-A, Collection Information Statement, detailing all your income, assets, and allowable living expenses. The IRS compares your total allowable expenses (using National and Local Standards like $812 for a single person's food and $858 for one car transportation) against your income. If your necessary expenses equal or exceed your income, leaving no disposable income, the IRS may place your account in CNC status under IRM 5.16.1. This status signifies an economic hardship under IRC §6343 and typically leads to the release of any existing levies.
The IRS can levy a portion of your wages using Form 668-W, Notice of Levy on Wages, Salary, and Other Income. However, a significant portion of your earnings is exempt from levy, ensuring you have funds for basic living expenses. According to IRS Publication 1494 (2025), for a single individual with no dependents in Franklin County, IL, $1096.67 per month is exempt from levy. If that individual claims one dependent, the exempt amount increases to $1680.0 per month. For a married couple filing jointly with one dependent, $2286.67 per month is exempt. The IRS calculates the non-exempt portion, which is then sent directly from your employer to the IRS. Illinois state wage garnishment laws defer to these federal limits, ensuring taxpayers retain a protected amount.
Since the IRS does not provide a specific local housing standard for Franklin County, IL, your actual, reasonable housing expenses are considered. If your rent, for example, is higher than the HUD FY2025 Fair Market Rent of $920.0 for a 2-bedroom unit in the area, you can still justify this expense to the IRS. IRM 5.15.1.10 allows for deviations from standard amounts when taxpayers can demonstrate that their necessary living expenses exceed the standard due to unique circumstances. You would need to provide documentation and a clear explanation on your Form 433-A to support why your higher rent is a necessary and unavoidable expense, strengthening your case for a higher allowable expense.
The IRS has a statutory period of 10 years to collect a tax debt, known as the Collection Statute Expiration Date (CSED), as defined by Internal Revenue Code (IRC) §6502. This 10-year period generally starts from the date the tax was assessed. While certain events can extend this period (like filing an Offer in Compromise, requesting a Collection Due Process hearing, or residing outside the U.S.), simply being placed in Currently Not Collectible (CNC) status, as outlined in IRM 5.16.1, does not extend the CSED. This means that if you remain in CNC status for the remainder of the 10-year period, the debt will expire without being paid. Understanding your CSED is a critical component of any long-term IRS tax resolution strategy.

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