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Fremont County, Colorado IRS Wage Levy & Hardship Relief

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

Understanding IRS Collection Standards in Fremont County, CO

For taxpayers in Fremont County, Colorado, facing IRS enforced collection, understanding the IRS Collection Financial Standards is critical. These standards, used when completing IRS Form 433-A (Collection Information Statement for Wage Earners and Self-Employed Individuals), determine your ability to pay. The IRS calculates your disposable income by subtracting allowable living expenses from your gross income. National Standards cover essential costs like food, with a single person in Fremont County allotted $812 monthly for food, clothing, and other necessities. While specific local housing standards are not published for Fremont County, actual reasonable and necessary housing expenses are allowed. These standards are derived from comprehensive data provided by IRS.gov, the Bureau of Labor Statistics (BLS), and the U.S. Census Bureau, ensuring a data-driven approach to evaluating economic hardship under IRC §6343(a)(1)(D). This rigorous financial assessment is the foundation for negotiating resolutions like an Offer in Compromise or Currently Not Collectible status.

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

For Fremont County, CO, the IRS does not publish a specific local standard for Housing & Utilities. This means taxpayers are permitted to claim their actual, reasonable, and necessary housing expenses. For context, the HUD FY2025 Fair Market Rent data for Fremont County indicates a 2-bedroom unit averages $1710.0 per month. If your actual housing costs, including utilities, are in line with or exceed this figure, it is crucial to document them thoroughly on Form 433-A. Should your housing expenses be deemed excessive by the IRS, you may need to request a deviation from standard allowances, as outlined in Internal Revenue Manual (IRM) 5.15.1.10. Such deviations are granted when a taxpayer can demonstrate unique circumstances justifying higher expenses. Unfortunately, regional Shelter CPI (Consumer Price Index) data for Fremont County is not available, which could otherwise provide additional economic context for housing costs.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS Collection Financial Standards provide specific allowances for other critical living expenses for Fremont County residents. The National Standards for Food, Clothing, and Other necessities allocate $812 per month for a single individual, increasing to $1983 for a family of four. These figures are based on the Bureau of Labor Statistics Consumer Expenditure Survey. For healthcare, the National Standards allow $75 monthly per person under 65 and $153 per person aged 65 and over, derived from the Medical Expenditure Panel Survey. Regarding transportation in Fremont County, the IRS Local Standards permit $588 per month for one owned car (covering ownership costs) and an additional $270 for operating expenses in the region, totaling $858 monthly for one vehicle. For households with two cars, the allowance is $1176 for ownership plus $270 for operating, totaling $1446. These allowances are critical for calculating your ability to pay your tax debt.

Qualifying for Currently Not Collectible (CNC) Status in Colorado

Achieving Currently Not Collectible (CNC) status in Colorado provides temporary relief from IRS enforced collection actions, such as wage levies (Form 668-W) or bank levies (Form 668-A), when you demonstrate an inability to pay. To qualify in Fremont County, you must complete and submit IRS Form 433-A, detailing your income, assets, and all allowable monthly expenses. The IRS will conduct a thorough financial analysis, comparing your total income against your total allowable living expenses. For a single filer, if your actual, reasonable housing expense is $1710.0 (reflective of a 2-bedroom FMR), combined with National Standards of $812 for food/clothing, $75 for healthcare (under 65), and $858 for transportation (one car), your total monthly allowable expenses would be approximately $3655.0. If your income does not exceed these expenses, you may be granted CNC status under IRM 5.16.1. This status signifies economic hardship, compelling the IRS to release a levy under IRC §6343. Importantly, while CNC status pauses collection, it does not extend the Collection Statute Expiration Date (CSED), which typically remains 10 years from the tax assessment date as per IRC §6502.

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Frequently Asked Questions

For Fremont County, Colorado, the IRS does not provide a specific local housing allowance in its Collection Financial Standards. Instead, taxpayers are permitted to claim their actual, reasonable, and necessary housing expenses, provided they can be fully documented. For context, the U.S. Department of Housing and Urban Development (HUD) reports the FY2025 Fair Market Rent (FMR) for a 2-bedroom unit in Fremont County as $1710.0 per month. Taxpayers whose actual housing costs exceed what the IRS might typically consider 'reasonable' can request a deviation, as outlined in Internal Revenue Manual (IRM) 5.15.1.10. This requires submitting a detailed explanation and supporting documentation to justify the higher expenses, demonstrating that they are essential for maintaining a reasonable quality of life.
To qualify for Currently Not Collectible (CNC) status in Colorado, you must demonstrate to the IRS that you lack the financial ability to pay your tax debt. This process begins by filing IRS Form 433-A, a comprehensive financial statement detailing your income, assets, and monthly living expenses. The IRS then compares your total monthly income against the allowable National and Local Collection Financial Standards. If your documented, allowable expenses, which include items like $812 for food (for a single person) and $75 for healthcare (per person under 65), exceed your income, the IRS may place your account in CNC status. This effectively pauses active collection efforts, including the release of levies under IRC §6343, as detailed in IRM 5.16.1. It provides crucial temporary relief while your financial situation remains unchanged.
When the IRS issues a wage levy (Form 668-W) in Fremont County, Colorado, the amount it can take from your paycheck is precisely calculated based on your filing status and the number of dependents you claim. The IRS uses specific tables from Publication 1494 to determine the exempt amount, which is protected from the levy. For example, a single taxpayer with zero dependents has $1096.67 of their monthly wages exempt from levy in 2025. If that same single taxpayer claims one dependent, their exempt amount increases to $1680.0 per month. Any wages exceeding this exempt amount are subject to the levy under IRC §6331. This calculation protects a portion of your earnings, ensuring you retain funds for basic living expenses, though it can still create significant financial hardship.
In Fremont County, Colorado, the IRS does not establish a specific local standard for housing, meaning you are allowed to claim your actual, reasonable, and necessary housing expenses. If your rent, for example, is $1710.0 for a 2-bedroom unit (based on HUD FY2025 Fair Market Rent data), and this amount is necessary for your living situation, you should document it on your Form 433-A. If the IRS examiner believes your housing expenses are excessive, you have the right to request a deviation from the standard allowances. As per IRM 5.15.1.10, you must provide clear documentation and a compelling explanation demonstrating why your higher expenses are reasonable and essential for your circumstances, such as medical needs, job requirements, or family size.
The IRS generally has 10 years to collect a tax debt, a period known as the Collection Statute Expiration Date (CSED), as mandated by Internal Revenue Code (IRC) §6502. This 10-year clock typically starts from the date your tax liability was assessed. While being placed in Currently Not Collectible (CNC) status (IRM 5.16.1) temporarily halts active collection efforts, it does not extend your CSED. However, certain actions can pause or extend this collection period, such as filing for bankruptcy, submitting an Offer in Compromise (Form 656), or requesting a Collection Due Process (CDP) hearing. Understanding your CSED is a critical component of any long-term tax resolution strategy, particularly for taxpayers in Fremont County, CO, seeking to manage their tax obligations effectively.

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