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Navigating IRS Wage Levies and Hardship in Great Falls, Montana

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

Understanding IRS Collection Standards in Great Falls, MT MSA

When the IRS evaluates a taxpayer's ability to pay in Great Falls, MT MSA, they use a detailed financial analysis based on Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals. This form helps the IRS calculate disposable income by comparing your monthly income to allowable living expenses. These expenses are determined by both National and Local Standards, ensuring a consistent yet geographically sensitive approach. For instance, the National Standards allocate $812 per month for a single individual's food, clothing, and other necessities, derived from Bureau of Labor Statistics data. While specific housing and utility standards are not provided for Great Falls, MT MSA, taxpayers must substantiate their actual necessary expenses. This comprehensive evaluation is crucial for taxpayers seeking relief under IRC §6343(a)(1)(D), which allows for the release of a levy if it creates an economic hardship. These financial standards are meticulously updated and published on IRS.gov, drawing from sources like the US Census Bureau and the Bureau of Labor Statistics, to reflect current economic realities.

Great Falls, MT MSA Housing & Utilities Allowance vs. HUD Fair Market Rent

For taxpayers in Great Falls, MT MSA, the IRS does not publish specific local Housing & Utilities Standards. This means you must document and justify your actual, necessary housing and utility expenses. This is a critical distinction from other regions where a set standard applies. To provide a benchmark, the U.S. Department of Housing and Urban Development (HUD) reports the FY2025 Fair Market Rent (FMR) for a 2-bedroom unit in the Great Falls, MT MSA as $1130.0, with a 1-bedroom at $860.0. If your actual, necessary housing expenses exceed what the IRS might consider reasonable, you may need to request a deviation from the standard, as outlined in Internal Revenue Manual (IRM) 5.15.1.10. Emphasizing that your actual rent, such as $1130.0 for a 2-bedroom, is consistent with HUD's FMR data can strengthen your argument for a deviation, especially since regional shelter CPI data is not available for this area to indicate inflationary pressures on housing costs.

Food, Healthcare & Transportation Allowances in Great Falls, Montana

Beyond housing, the IRS considers National and Local Standards for other essential living expenses in Great Falls, Montana. For food, clothing, and other miscellaneous items, the National Standards, based on the Bureau of Labor Statistics Consumer Expenditure Survey, provide specific monthly allowances: $812 for a single person, up to $1983 for a family of four. This includes $449 for food, $99 for apparel, and $175 for miscellaneous items for a single individual. Healthcare is also covered by National Standards, derived from the Medical Expenditure Panel Survey, allowing $75 per month for individuals under 65 and $153 for those 65 and over. For transportation in the Great Falls region, the IRS Local Standards, based on Bureau of Labor Statistics data and American Automobile Association operating costs, provide a monthly allowance of $588 for one car ownership and $270 for operating costs, totaling $858 for one vehicle. These specific figures are vital in determining your allowable expenses during a collection financial analysis.

Qualifying for Currently Not Collectible (CNC) Status in Montana

Achieving Currently Not Collectible (CNC) status in Montana signifies that the IRS has determined you lack the financial ability to pay your tax debt. To qualify, you must file a comprehensive Form 433-A, Collection Information Statement, detailing all your income, assets, and expenses. The IRS will compare your total allowable monthly expenses against your gross monthly income. For example, a single filer in Great Falls, Montana, might have allowable expenses including $860.0 for a 1-bedroom apartment (per HUD FMR, as IRS housing standards are N/A), $812 for food/clothing/other, $75 for healthcare (under 65), and $858 for one-car transportation. If your total allowable expenses ($860.0 + $812 + $75 + $858 = $2605.0) exceed your monthly income, you could be deemed CNC. While in CNC status, the IRS typically ceases enforced collection actions like wage or bank levies, as detailed in IRM 5.16.1 procedures and IRC §6343 concerning levy release due to economic hardship. It's crucial to remember that CNC status does not forgive the debt; the statutory period for collection (CSED) under IRC §6502, which is generally 10 years from assessment, continues to run and is not extended by CNC status.

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Frequently Asked Questions

For Great Falls, MT MSA, the IRS Collection Financial Standards do not specify a fixed housing and utilities allowance. This means taxpayers must meticulously document and justify their actual, necessary monthly housing and utility expenses for the IRS to consider. For reference, the U.S. Department of Housing and Urban Development (HUD) FY2025 Fair Market Rent (FMR) for a 1-bedroom apartment in Great Falls, MT MSA is $860.0, and a 2-bedroom is $1130.0. When completing IRS Form 433-A, you will enter your actual costs, which the IRS will then evaluate for reasonableness. If your actual expenses are higher than what the IRS might typically allow in other areas, you may need to request a deviation under IRM 5.15.1.10, providing compelling reasons.
To qualify for Currently Not Collectible (CNC) status in Montana, you must demonstrate to the IRS that you cannot afford to pay your tax debt after covering your essential living expenses. This process begins by submitting a completed IRS Form 433-A, Collection Information Statement, which details your income, assets, and monthly expenses. The IRS then compares your total income to your allowable expenses, which are determined by National and Local Standards. For example, a single person in Great Falls, Montana, has a National Standard allowance of $812 for food, clothing, and other items, plus $75 for healthcare (under 65), and $858 for transportation (one car). Since there's no specific IRS housing standard for Great Falls, you'd use your actual, necessary housing costs. If your total allowable expenses exceed your income, the IRS may place your account in CNC status, temporarily halting collection actions like wage levies (Form 668-W) or bank levies (Form 668-A), as per IRM 5.16.1 guidelines.
When the IRS issues a wage levy, such as Form 668-W, Notice of Levy on Wages, Salary, and Other Income, to an employer in Great Falls, MT MSA, it does not take your entire paycheck. Instead, the IRS calculates an exempt amount based on your filing status and number of dependents, which is protected from the levy. For 2025, according to IRS Publication 1494, a single individual with zero dependents has $1096.67 per month exempt from levy. A single individual with one dependent would have $1680.0 exempt. For a married individual filing jointly with zero dependents, $1096.67 is exempt, increasing to $2286.67 with one dependent. The amount above this exempt threshold is what the IRS will levy. Montana follows federal CCPA limits for state wage garnishment, but IRS levies operate under specific federal rules, which often result in a higher amount being taken than typical private garnishments.
If your actual rent in Great Falls, MT MSA exceeds the amount the IRS might typically allow, it's crucial to understand that there isn't a pre-defined IRS standard for housing for this specific area. Therefore, the IRS will evaluate your actual, necessary housing expenses. For context, the HUD FY2025 Fair Market Rent for a 2-bedroom unit in Great Falls, MT MSA is $1130.0, and $860.0 for a 1-bedroom. If your rent is higher than these FMR figures, or if the IRS auditor deems your actual expenses excessive, you can request a deviation from the standard. Under IRM 5.15.1.10, you must provide compelling documentation and a clear explanation demonstrating why your higher housing cost is necessary and reasonable, considering factors like family size, health needs, or local market conditions. This deviation request is a critical step to ensure your financial analysis accurately reflects your true ability to pay.
The IRS generally has 10 years to collect a tax debt, a period known as the Collection Statute Expiration Date (CSED), as outlined in Internal Revenue Code (IRC) §6502. This 10-year clock typically starts from the date your tax was assessed. It's important to note that certain events can 'pause' or 'extend' this 10-year period, such as filing for bankruptcy, submitting an Offer in Compromise (Form 656), or requesting a Collection Due Process (CDP) hearing. However, being placed in Currently Not Collectible (CNC) status does not extend the CSED; the collection clock continues to run while you are in CNC. Therefore, pursuing CNC status in Great Falls, Montana, can be a strategic move to allow the CSED to expire without the burden of active IRS collection efforts, like wage levies (IRC §6331), provided you maintain your financial hardship status and the IRS doesn't find assets or increased income.

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