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Franklin County, Tennessee IRS Wage Levy & Hardship Relief

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

Understanding IRS Collection Standards in Franklin County

When facing IRS collection actions in Franklin County, Tennessee, understanding the IRS Collection Financial Standards is crucial for determining your ability to pay. The IRS uses these standards, along with information from your submitted Form 433-A, Collection Information Statement, to calculate your disposable income. These standards include National Standards for categories like Food, Clothing, and Other, and Local Standards for Transportation. For a single individual in Franklin County, the monthly food allowance is $449, contributing to a total National Standard of $812. For a family of four, this rises to $1983. Importantly, while the IRS Collection Financial Standards provide specific allowances derived from US Census Bureau American Community Survey and Bureau of Labor Statistics data, Franklin County, TN does not have a specific housing and utilities allowance. In such cases, the IRS evaluates actual reasonable expenses. If your income, after accounting for these necessary living expenses, leaves little to no disposable income, you may qualify for economic hardship status under IRC §6343(a)(1)(D), potentially leading to a levy release or Currently Not Collectible (CNC) status.

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

A significant point for Franklin County, TN taxpayers is the absence of a designated IRS Local Standard for Housing and Utilities. The IRS Collection Financial Standards explicitly list 'N/A' for these allowances in Franklin County. This means the IRS will evaluate your actual, reasonable housing and utility expenses. To determine what constitutes a 'reasonable' expense, taxpayers can reference data such as the HUD FY2025 Fair Market Rent (FMR) for the area. For example, the HUD FMR for a 2-bedroom residence in Franklin County, TN is $930.0 per month. If your actual housing costs exceed this, or if you need to establish a reasonable allowance, presenting FMR data can be highly beneficial. Under IRM 5.15.1.10, taxpayers can request a deviation from the standard allowances if their actual necessary expenses are higher. Since specific regional Shelter CPI data is not available for this region from the Bureau of Labor Statistics, justifying actual expenses against HUD FMR becomes an even stronger argument to demonstrate financial hardship and prevent an aggressive IRS enforced collection action.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS provides specific allowances for essential living expenses. For food, clothing, and other necessities, National Standards apply uniformly across the U.S., based on the Bureau of Labor Statistics Consumer Expenditure Survey. For a single person, the monthly allowance is $812. This increases to $1478 for a two-person household, $1697 for three, and $1983 for a four-person household, with an additional $357 for each subsequent person. Healthcare is also covered by National Standards, derived from the Medical Expenditure Panel Survey. For individuals under 65, the monthly out-of-pocket healthcare allowance is $75 per person, while those 65 and over receive $153 per person. Regarding transportation, Franklin County, TN taxpayers are subject to IRS Local Standards. For one owned car, the allowance is $588 for ownership costs plus $270 for operating costs, totaling $858 per month. For two owned cars, the ownership allowance is $1176, plus the $270 operating cost per vehicle, totaling $1446. These figures are based on Bureau of Labor Statistics data and American Automobile Association operating costs, providing a clear framework for allowable expenses.

Qualifying for Currently Not Collectible (CNC) Status in Tennessee

Achieving Currently Not Collectible (CNC) status in Franklin County, Tennessee, is a critical relief option for taxpayers experiencing severe financial hardship. To qualify, you must demonstrate to the IRS that your income is insufficient to cover basic living expenses, leaving no funds available for tax payments. This is primarily established by submitting IRS Form 433-A, Collection Information Statement, detailing your assets, liabilities, income, and expenses. The IRS then compares your total income against your total allowable expenses, which include the National Standards (e.g., $812 for a single person's food, clothing, and other expenses) and Local Standards (e.g., $858 for one-car transportation in Franklin County). Since there's no specific housing allowance for Franklin County, your actual reasonable housing costs, such as the HUD FMR of $930.0 for a 2-bedroom residence, are considered. For a single filer, if their income after allowing for $930.0 for housing, $812 for food, $75 for healthcare (under 65), and $858 for transportation totals $2675, leaves them with no disposable income, CNC status is likely. If approved, the IRS will cease active collection efforts, including releasing any existing levies under IRC §6343. It's important to note that while CNC status halts collection, it does not stop interest and penalties from accruing, nor does it extend the Collection Statute Expiration Date (CSED) under IRC §6502, which typically limits the IRS to 10 years to collect the debt.

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Frequently Asked Questions

For Franklin County, Tennessee, the IRS Collection Financial Standards for Housing and Utilities are listed as 'N/A,' meaning there is no predetermined standard allowance. Instead, the IRS will evaluate your actual, reasonable housing and utility expenses. Taxpayers should be prepared to provide documentation for their rent or mortgage, property taxes, insurance, and utility bills. To help establish a 'reasonable' expense, taxpayers can reference the HUD FY2025 Fair Market Rent (FMR) data; for example, a 2-bedroom residence in Franklin County has an FMR of $930.0. If your actual housing costs exceed what the IRS considers reasonable, you can request a deviation from the standard under IRM 5.15.1.10, providing detailed justification for your necessary expenses. This approach is crucial for accurately reflecting your true financial situation.
To qualify for Currently Not Collectible (CNC) status in Tennessee, you must demonstrate to the IRS that you lack the financial capacity to pay your tax debt. This process begins by submitting IRS Form 433-A, Collection Information Statement, which details your income, assets, and all necessary living expenses. The IRS will compare your income against their established National and Local Collection Financial Standards. For instance, a single individual in Franklin County is allowed $812 monthly for food, clothing, and other items, plus $75 for out-of-pocket healthcare (if under 65), and $858 for one-car transportation. Since there's no specific housing standard for Franklin County, your actual reasonable housing costs, such as the HUD FMR of $930.0 for a 2-bedroom, would be considered. If your total allowable expenses equal or exceed your income, leaving no disposable funds, the IRS may place your account in CNC status under IRM 5.16.1. This action can lead to a release of levies under IRC §6343, providing significant relief.
The amount the IRS can levy from your paycheck in Franklin County, TN, is determined by IRS Publication 1494, Table for Figuring Amount Exempt from Levy, and is issued via Form 668-W, Notice of Levy on Wages, Salary, and Other Income. This table outlines the monthly exempt amounts based on your filing status and the number of dependents you claim. For example, in 2025, a single individual with zero dependents has $1096.67 exempt from levy each month. If that same single individual claims one dependent, their exempt amount increases to $1680.0 monthly. For a married individual filing jointly with zero dependents, $1096.67 is also exempt, increasing to $2286.67 with one dependent. The IRS can seize any wages above these exempt thresholds. Tennessee's state wage garnishment laws defer to federal limits, which are generally 25% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum wage, whichever is less restrictive for the taxpayer, but IRS levies often take more.
In Franklin County, TN, the IRS does not provide a specific Local Standard for Housing and Utilities, listing it as 'N/A'. This means the IRS will consider your actual, necessary housing expenses when evaluating your ability to pay. If your rent, for instance, for a 2-bedroom home is $930.0, which aligns with the HUD FY2025 Fair Market Rent for the area, this would generally be considered a reasonable expense. If your rent exceeds what the IRS might typically allow for similar properties, you have the right to request a deviation from the standard, as outlined in IRM 5.15.1.10. To do this, you must provide clear documentation and a compelling explanation demonstrating why your higher housing costs are necessary and reasonable given your specific circumstances. This could include medical needs, local market conditions, or family size. Demonstrating these necessary expenses is vital to prevent the IRS from overestimating your disposable income and to protect your financial stability.
The IRS generally has 10 years to collect a tax debt from the date of assessment. This period is known as the Collection Statute Expiration Date (CSED), as defined by IRC §6502. After this 10-year period expires, the IRS is legally prohibited from collecting the tax debt. While the CSED is typically 10 years, certain actions can extend or suspend this period. For example, filing for bankruptcy, requesting an Offer in Compromise (Form 656), or requesting a Collection Due Process (CDP) hearing can suspend the CSED. Importantly, being placed in Currently Not Collectible (CNC) status under IRM 5.16.1 does not extend the CSED. Instead, it pauses active collection efforts, allowing the 10-year period to continue running. This means that if you can maintain CNC status for an extended period, the CSED might expire while your account is in non-collectible status, effectively resolving the debt without payment. Understanding your CSED is a critical component of any long-term IRS tax resolution strategy.

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