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Grafton County, New Hampshire: Navigating IRS Wage Levy & Hardship Status

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

Understanding IRS Collection Standards in Grafton County

For taxpayers in Grafton County, New Hampshire, facing IRS collection actions, understanding the IRS Collection Financial Standards is crucial for resolving tax debt. When assessing a taxpayer's ability to pay, the IRS requires a detailed financial statement, typically submitted on Form 433-A, 'Collection Information Statement for Wage Earners and Self-Employed Individuals.' This form helps the IRS determine your disposable income by comparing your gross income against allowable living expenses, which are categorized into National and Local Standards. While the IRS does not publish a specific local housing and utilities standard for Grafton County, it utilizes National Standards for categories like food and clothing. For instance, a single individual in Grafton County is allowed $812 monthly for food, clothing, and other necessities, based on Bureau of Labor Statistics Consumer Expenditure Survey data. If your allowable expenses exceed your income, you may qualify for 'economic hardship' under Internal Revenue Code (IRC) §6343(a)(1)(D), potentially leading to a levy release or Currently Not Collectible (CNC) status. These standards are derived from comprehensive data sources including IRS.gov Collection Financial Standards, the Bureau of Labor Statistics, and the U.S. Census Bureau.

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

Unlike many areas, the IRS Collection Financial Standards do not provide a specific local housing and utilities allowance for Grafton County, New Hampshire. In such cases, the IRS will generally consider a taxpayer's actual, reasonable housing expenses. This means that while there isn't a pre-defined IRS standard, your documented rent or mortgage and utility costs will be evaluated. For context, the HUD FY2025 Fair Market Rent (FMR) data for Grafton County indicates a 1-bedroom unit at $1340.0 per month and a 2-bedroom unit at $1750.0 per month. If your actual housing costs exceed what the IRS deems reasonable, you may need to request a deviation from the standard, as outlined in Internal Revenue Manual (IRM) 5.15.1.10, 'Allowable Expenses – Deviation from National, Local, and Other Necessary Expense Standards.' Documenting why your housing expenses are necessary and reasonable, especially if they align with or are below the local HUD FMR, can strengthen your argument. While regional Shelter CPI data for Grafton County is not available from the Bureau of Labor Statistics, the rising housing costs across New Hampshire underscore the importance of accurate expense reporting.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS Collection Financial Standards provide specific allowances for other essential living expenses. For food, clothing, and miscellaneous items, the National Standards apply uniformly across the U.S. For example, a single individual in Grafton County is allotted $812 per month, while a family of four is allowed $1983 per month. These figures are based on the Bureau of Labor Statistics Consumer Expenditure Survey. Healthcare expenses are also standardized, with an allowance of $75 per person per month for those under 65, and $153 per person per month for those 65 and over. For a family of four, all under 65, this amounts to $300 per month. These healthcare allowances are derived from the Medical Expenditure Panel Survey. Transportation is covered by Local Standards, which include both ownership and operating costs. In Grafton County, the allowance for one car is $588 for ownership costs and $270 for operating costs, totaling $858 per month. For two cars, the total allowance is $1446 per month. These transportation figures are based on Bureau of Labor Statistics data and American Automobile Association operating costs, reflecting regional expenses.

Qualifying for Currently Not Collectible (CNC) Status in New Hampshire

Achieving Currently Not Collectible (CNC) status in New Hampshire can provide significant relief from IRS enforced collection actions, such as wage levies (Form 668-W) or bank levies (Form 668-A). To qualify, you must demonstrate to the IRS that you lack the financial ability to pay your tax debt after accounting for your allowable living expenses. This process typically begins by submitting Form 433-A, 'Collection Information Statement for Wage Earners and Self-Employed Individuals,' detailing your income, assets, and expenses. The IRS will compare your total monthly income against your total allowable expenses, utilizing the National and Local Standards discussed previously. For a single filer in Grafton County, a representative calculation of allowable expenses might include: $1340.0 for 1-bedroom housing (based on HUD FMR as a reasonable actual expense), $812 for food/clothing/misc., $75 for healthcare (under 65), and $858 for 1-car transportation, totaling $3085.0 per month. If your income does not exceed this total, you may be considered for CNC status. Internal Revenue Manual (IRM) 5.16.1 outlines the procedures for placing an account in CNC status, which can lead to the release of a levy under IRC §6343. It's important to note that while CNC status temporarily stops collection, it does not erase the debt, and the 10-year Collection Statute Expiration Date (CSED) under IRC §6502 generally continues to run, meaning the IRS's time to collect is not extended by CNC status itself.

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Frequently Asked Questions

For Grafton County, New Hampshire, the IRS Collection Financial Standards do not provide a specific predetermined local housing and utilities allowance. Instead, the IRS considers a taxpayer's actual, reasonable expenses for rent or mortgage payments and utilities. It is crucial to document these costs thoroughly. For reference, the HUD FY2025 Fair Market Rent for Grafton County lists a 1-bedroom unit at $1340.0 and a 2-bedroom unit at $1750.0. While these are not IRS standards, they provide a benchmark for what is considered a reasonable housing cost in the area. If your actual housing expenses are higher than what the IRS initially allows, you may be able to request a deviation from the standard, as outlined in Internal Revenue Manual (IRM) 5.15.1.10, by providing compelling justification for your necessary expenses.
To qualify for Currently Not Collectible (CNC) status in New Hampshire, you must demonstrate to the IRS that your income is insufficient to pay your tax debt after accounting for your essential living expenses. The process involves submitting Form 433-A, 'Collection Information Statement for Wage Earners and Self-Employed Individuals,' which details your financial situation. The IRS will compare your total monthly income against the allowable National and Local Expense Standards. For instance, a single individual in Grafton County might have allowable expenses including $812 for food/clothing/misc., $75 for healthcare (if under 65), and $858 for one-car transportation. For housing, the IRS will evaluate your actual reasonable expenses, which could align with the HUD FMR of $1340.0 for a 1-bedroom unit. If your total allowable expenses exceed your net disposable income, the IRS may place your account in CNC status, as per Internal Revenue Manual (IRM) 5.16.1, temporarily halting collection efforts like wage levies.
When the IRS issues a wage levy (Form 668-W) in Grafton County, New Hampshire, they cannot take your entire paycheck. A portion of your wages is exempt from levy, calculated based on your filing status and number of dependents, as detailed in IRS Publication 1494, 'Table for Figuring Amount Exempt from Levy.' For 2025, a single individual with zero dependents has a monthly exemption of $1096.67. A single individual with one dependent has an exemption of $1680.0 per month. For a married individual filing jointly with zero dependents, the exemption is also $1096.67, increasing to $2286.67 with one dependent. The amount exempted from your wages is protected from the levy, and only the remaining disposable earnings can be seized. This federal limit generally supersedes state wage garnishment laws, which in New Hampshire follow federal Consumer Credit Protection Act (CCPA) limits (25% of disposable earnings or the amount above 30 times the federal minimum wage).
Since the IRS does not provide a specific local housing standard for Grafton County, New Hampshire, they will evaluate your actual, reasonable housing expenses. If your rent or mortgage, combined with utilities, exceeds what the IRS initially deems reasonable, you can still argue for the full amount to be allowed. For example, if your 2-bedroom rent is $1750.0, aligning with the HUD FY2025 Fair Market Rent for Grafton County, you should provide documentation to substantiate this cost. Under Internal Revenue Manual (IRM) 5.15.1.10, 'Allowable Expenses – Deviation from National, Local, and Other Necessary Expense Standards,' you can request a deviation. This requires demonstrating that your expenses are necessary and reasonable for your household's health and welfare. Providing lease agreements, utility bills, and a clear explanation of your circumstances can be critical in getting the IRS to accept your actual housing costs.
The IRS generally has 10 years to collect a tax debt, a period known as the Collection Statute Expiration Date (CSED). This 10-year period typically begins from the date the tax was assessed, as stipulated by Internal Revenue Code (IRC) §6502. However, certain actions can 'toll' or pause this 10-year clock, effectively extending the IRS's time to collect. For instance, filing an Offer in Compromise (Form 656), requesting a Collection Due Process hearing, or residing outside the U.S. for extended periods can extend the CSED. While being placed in Currently Not Collectible (CNC) status (IRM 5.16.1) temporarily stops collection efforts, it generally does not extend the CSED. It is crucial for taxpayers in Grafton County, New Hampshire, to be aware of their CSED to understand the ultimate timeframe for their tax liability, as the debt typically expires once this period ends, regardless of whether it has been paid in full.

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