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Goodhue County, Minnesota IRS Wage Levy & Hardship Tax Relief

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

Understanding IRS Collection Standards in Goodhue County

For taxpayers in Goodhue County, Minnesota, facing IRS collection actions, understanding the IRS Collection Financial Standards is crucial. These standards, published on IRS.gov and derived from data by the Bureau of Labor Statistics (BLS) and the US Census Bureau, are used by the IRS to determine a taxpayer's ability to pay, often through Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals. The IRS assesses your disposable income by comparing your gross income against these allowable living expenses, which include National Standards for categories like food and Local Standards for transportation. For example, a single individual is allowed $812 monthly for food, clothing, and other necessities. When a taxpayer's allowable expenses equal or exceed their income, it can lead to a determination of economic hardship, a critical factor under IRC §6343(a)(1)(D) for levy release.

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

Goodhue County, Minnesota, currently does not have a specific IRS Local Standard for Housing and Utilities published on IRS.gov Collection Financial Standards. This means taxpayers in Goodhue County must substantiate their actual necessary housing and utility expenses. To provide context, the HUD FY2025 Fair Market Rent for a 2-bedroom unit in this area is $1520.0 per month. If your actual, reasonable housing costs exceed the general allowances that might be applied, you can argue for a deviation from the standard, as outlined in Internal Revenue Manual (IRM) 5.15.1.10. This deviation process is vital, especially when your rent, like the $1520.0 for a 2-bedroom unit, is a significant portion of your income. While regional Shelter CPI data is not available for this specific region, rising housing costs are a common concern and a strong basis for requesting such a deviation.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS Collection Financial Standards provide specific allowances for other essential living expenses. For food, clothing, and other necessities, National Standards apply nationwide, allowing a single individual $812 per month, while a family of four can claim $1983, based on the BLS Consumer Expenditure Survey. Healthcare costs are also accounted for, with $75 per person monthly for those under 65, and $153 per person for those 65 and over, derived from the Medical Expenditure Panel Survey. Transportation standards for Goodhue County, Minnesota, allow for an ownership cost of $588 for one car and an operating cost of $270 per month for the region, totaling $858 for one vehicle. These figures, based on BLS data and American Automobile Association operating costs, are critical components in calculating your total allowable expenses on Form 433-A.

Qualifying for Currently Not Collectible (CNC) Status in Minnesota

Achieving Currently Not Collectible (CNC) status in Minnesota means the IRS has determined you cannot afford to pay your tax debt without experiencing economic hardship. To qualify, you must submit a detailed financial disclosure on Form 433-A, Collection Information Statement, allowing the IRS to compare your income against your total allowable monthly expenses. For a single filer in Goodhue County, these expenses could include an allowable housing cost (potentially substantiated by a reasonable actual cost like the HUD FMR of $1520.0 for a 2BR), $812 for food and other necessities, $75 for healthcare, and $858 for transportation, totaling significant monthly expenses. If your expenses exceed your income, the IRS may place your account in CNC status, which means active collection efforts, including wage levies (Form 668-W) and bank levies (Form 668-A), are suspended. This process is governed by IRM 5.16.1, and an approved CNC status can lead to the release of an existing levy under IRC §6343. Importantly, CNC status does not extend the Collection Statute Expiration Date (CSED) under IRC §6502, which is generally 10 years from the assessment date.

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Frequently Asked Questions

For Goodhue County, Minnesota, the IRS Collection Financial Standards do not provide a specific local housing and utilities allowance. This means taxpayers must document and justify their actual, reasonable housing expenses. For context, the U.S. Department of Housing and Urban Development (HUD) reports the FY2025 Fair Market Rent for a 2-bedroom unit in Goodhue County as $1520.0 per month. When completing IRS Form 433-A, taxpayers should list their actual housing and utility costs. If these expenses are reasonable and necessary, they can be allowed, even if they exceed general averages. This approach is critical for demonstrating your true financial situation to the IRS, aligning with the principles outlined in IRS.gov Collection Financial Standards.
To qualify for Currently Not Collectible (CNC) status in Minnesota, you must demonstrate to the IRS that you cannot pay your tax debt due to economic hardship. This involves submitting a comprehensive financial statement, typically IRS Form 433-A. The IRS will analyze your income against your allowable monthly living expenses, which include National Standards ($812 for a single person's food, clothing, and other necessities), healthcare ($75 per person under 65), and local transportation costs ($858 for one car, combining ownership and operating costs for the region). If your total allowable expenses meet or exceed your income, leaving no funds for tax payments, the IRS may grant CNC status under IRM 5.16.1. This temporarily halts collection actions like wage levies (Form 668-W), providing relief.
When the IRS issues a wage levy (Form 668-W) in Goodhue County, Minnesota, the amount taken from your paycheck is determined by IRS Publication 1494, Table for Figuring Amount Exempt from Levy. This table specifies a portion of your wages that is exempt from levy, based on your filing status and number of dependents. For 2025, a single individual with zero dependents has an exempt amount of $1096.67 per month. A single individual with one dependent would have $1680.0 exempt. For married filing jointly with one dependent, the exempt amount is $2286.67. Any wages above this exempt amount can be levied. State wage garnishment laws typically follow federal Consumer Credit Protection Act (CCPA) limits, which allow the lesser of 25% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum wage, but federal IRS levies often supersede these limits up to the non-exempt amount.
If your rent in Goodhue County, Minnesota, exceeds the IRS Collection Financial Standards, which currently do not provide a specific local housing allowance for the area, you can still argue for the allowance of your actual, necessary expenses. For instance, the HUD FY2025 Fair Market Rent for a 2-bedroom unit in Goodhue County is $1520.0. If your rent is at or near this amount and is reasonable for your household size and local market, you can present this information on IRS Form 433-A. Internal Revenue Manual (IRM) 5.15.1.10 explicitly allows for deviations from standard allowances when a taxpayer can substantiate that their actual expenses are necessary and reasonable. This is a critical provision for taxpayers in areas without specific IRS housing standards, enabling a more accurate reflection of their financial situation.
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. During this period, the IRS can pursue various collection actions, including wage levies (Form 668-W), bank levies (Form 668-A), and tax liens. If your account is placed in Currently Not Collectible (CNC) status, meaning the IRS has determined you cannot afford to pay, this status does not extend the CSED. The 10-year collection period continues to run while your account is in CNC. Therefore, pursuing CNC status can be a strategic move to allow the CSED to expire without active collection, offering a path to resolution without full payment.

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