Greene County, Tennessee: Navigating IRS Wage Levy and Hardship Status

When the Internal Revenue Service (IRS) evaluates a taxpayer's ability to pay delinquent taxes, they utilize a detailed financial analysis documented on Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals. This form helps the IRS determine a taxpayer's disposable income by comparing their gross income against a series of allowable monthly expenses, known as Collection Financial Standards. These standards are categorized into National and Local allowances. For instance, a single individual in Greene County, TN, is allocated $812 monthly for food, clothing, and other necessities under the National Standards. While specific housing standards for Greene County, TN, are not published by the IRS, the agency often refers to local economic data. The goal is to identify if an economic hardship exists, which, under Internal Revenue Code (IRC) §6343(a)(1)(D), can necessitate the release of a levy. These crucial figures are derived from authoritative sources like IRS.gov Collection Financial Standards, the Bureau of Labor Statistics (BLS), and the US Census Bureau, ensuring accuracy in determining a taxpayer's financial reality.

Unlike many areas, the IRS does not publish a specific Housing & Utilities allowance for Greene County, TN, listing it as $N/A in its Collection Financial Standards. However, taxpayers are still entitled to a reasonable housing expense. In such cases, the IRS may consider other reliable local data, such as the US Department of Housing & Urban Development (HUD) Fair Market Rent (FMR) data. For Greene County, TN, the FY2025 HUD FMR for a 2-bedroom residence is $960.0 per month. If a taxpayer's actual housing costs exceed the standard allowed, Internal Revenue Manual (IRM) 5.15.1.10 provides a framework for requesting a deviation from the standard, arguing that their expenses are necessary and reasonable. Demonstrating that your rent, such as $960.0 for a 2BR, exceeds any implied or general IRS housing allowance strengthens your argument for a deviation. While regional Shelter CPI data for Greene County, TN, is not available to show year-over-year changes, the HUD FMR provides a current, localized benchmark for housing costs.

Beyond housing, the IRS allows for essential living expenses across three critical categories. For food, clothing, and other necessities, the National Standards allocate $812 per month for a single person, escalating to $1983 for a family of four, with an additional $357 for each subsequent person, all based on the Bureau of Labor Statistics Consumer Expenditure Survey. Healthcare costs are also factored in, with a monthly allowance of $75 per person under 65 and $153 per person for those 65 and over, derived from the Medical Expenditure Panel Survey. This means a family of four, all under 65, would be allowed $300 for healthcare. For transportation in Greene County, TN, the IRS Local Standards provide for both ownership and operating costs. A single vehicle allowance combines $588 for ownership and $270 for operating expenses, totaling $858 per month. For two vehicles, the allowance is $1176 for ownership and $270 for operating, totaling $1446, reflecting data from the BLS and American Automobile Association (AAA).

For taxpayers in Greene County, Tennessee, facing severe financial distress, Currently Not Collectible (CNC) status offers a temporary reprieve from IRS enforced collection actions. To qualify, you must demonstrate to the IRS that your allowable monthly living expenses equal or exceed your monthly income, leaving no funds available to pay your tax debt. This is determined by completing a detailed Form 433-A, where your income is measured against the IRS's National and Local Collection Financial Standards. For example, a single filer in Greene County, TN, with a monthly income less than their total allowable expenses—such as a 2-bedroom HUD FMR of $960.0, plus National Standards for food ($812), out-of-pocket healthcare ($75), and one-car transportation ($858)—totaling $2705.0, would be a strong candidate for CNC. IRM 5.16.1 outlines the procedures for placing an account in CNC status, and if approved, any existing IRS levy (Form 668-W or 668-A) must be released under IRC §6343. It's crucial to remember that while CNC status halts collection, it does not erase the debt, and the 10-year Collection Statute Expiration Date (CSED) under IRC §6502 continues to run, meaning CNC status does not extend the collection period.