Green County, Wisconsin: Navigating IRS Wage Levy and Hardship

For taxpayers in Green County, WI, facing IRS enforced collection actions, understanding the IRS Collection Financial Standards is crucial. These standards, utilized when evaluating your ability to pay via IRS Form 433-A, Collection Information Statement, determine your allowable monthly living expenses. The IRS assesses your disposable income by comparing your gross income against these National and Local Standards, which are derived from extensive data from IRS.gov, the Bureau of Labor Statistics (BLS), and the US Census Bureau. For instance, the IRS National Standard for Food, Clothing & Other for a single person is $812 per month, covering essential needs like $449 for food. If your allowable expenses exceed your income, you may qualify for a collection alternative, including economic hardship under IRC §6343(a)(1)(D), which mandates the IRS to release a levy if it creates an economic hardship.

Unlike many areas, the IRS does not publish specific local housing and utilities allowances for Green County, WI. The IRS Collection Financial Standards indicate "N/A" for all household sizes in this region, meaning taxpayers must report their actual housing and utility expenses on Form 433-A. These actual expenses are then reviewed for reasonableness. For comparison, the HUD FY2025 Fair Market Rent (FMR) data for the Green County, WI HUD Metro FMR Area shows a 2-bedroom unit at $1140.0 per month. If your actual, necessary housing costs exceed what the IRS might typically allow in other regions, you can argue for a deviation from standard allowances, as outlined in IRM 5.15.1.10, based on your specific circumstances. This becomes particularly relevant when local rents, such as the $1140.0 for a 2BR, are significant. While regional Shelter CPI data for this specific area is not available, taxpayers must be prepared to substantiate their necessary housing expenses.

Beyond housing, the IRS allows specific amounts for other essential living expenses. The National Standards for Food, Clothing & Other, based on BLS Consumer Expenditure Survey data, provide a monthly allowance ranging from $812 for a single person to $1983 for a family of four. This includes categories like Food ($449 for a single person), Apparel ($99), and Personal Care ($45). For healthcare, the National Standards for Out-of-Pocket Healthcare, derived from the Medical Expenditure Panel Survey, allow $75 per person under 65 and $153 per person 65 and over monthly. Transportation allowances for Green County, WI, are also standardized: $588 per month for one car ownership and $270 for operating costs in this region, totaling $858 for one vehicle. These figures, rooted in BLS data and American Automobile Association (AAA) operating costs, are critical components in calculating your total allowable expenses on Form 433-A.

For Green County, Wisconsin residents facing severe financial distress, the IRS offers Currently Not Collectible (CNC) status. To qualify, you must demonstrate, usually through Form 433-A, that your essential monthly living expenses equal or exceed your income, leaving no disposable income for tax payments. For example, a single filer in Green County, WI, might have allowable expenses totaling $2885.0 per month (using a 2-bedroom HUD FMR of $1140.0 for housing, $812 for food/clothing/other, $75 for healthcare, and $858 for one-car transportation). If their income is less than or equal to this, they may qualify. IRM 5.16.1 outlines the procedures for CNC status, which means the IRS temporarily suspends collection efforts. Importantly, achieving CNC status can lead to the release of an IRS levy under IRC §6343. While in CNC, interest and penalties continue to accrue, and the 10-year Collection Statute Expiration Date (CSED) under IRC §6502 continues to run, meaning CNC status does not extend the time the IRS has to collect your debt.