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Hand County, South Dakota IRS Wage Levy & Hardship Assistance

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

Understanding IRS Collection Standards in Hand County

When facing IRS collection actions in Hand County, South Dakota, understanding the IRS Collection Financial Standards is crucial. The IRS uses these standards, outlined on Form 433-A (Collection Information Statement), to determine a taxpayer's ability to pay, ultimately calculating their disposable income. These standards are divided into National Standards (for food, clothing, personal care, etc.) and Local Standards (for housing, utilities, and transportation). For a single individual in Hand County, the monthly National Standard allowance for Food, Clothing, and Other is $812. These figures are derived from authoritative sources like the Bureau of Labor Statistics (BLS) Consumer Expenditure Survey and the US Census Bureau. If your essential living expenses meet or exceed your income, the IRS may determine that an economic hardship exists, potentially leading to a levy release or Currently Not Collectible (CNC) status under Internal Revenue Code (IRC) §6343(a)(1)(D). These standards are published on IRS.gov and are fundamental to navigating IRS enforced collection.

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

For residents of Hand County, South Dakota, the IRS Collection Financial Standards currently list a 'N/A' for the Housing and Utilities Local Standard. This means the IRS does not publish a pre-determined amount for this specific county. In such cases, taxpayers must substantiate their actual, reasonable housing and utility expenses. For comparison, the Department of Housing and Urban Development (HUD) FY2025 Fair Market Rent (FMR) data for this area provides a 2-bedroom unit at $980.0 per month. If your actual housing costs, such as the HUD FMR of $980.0 for a 2-bedroom, exceed what the IRS might otherwise allow or if no standard is provided, you can request a deviation. Internal Revenue Manual (IRM) 5.15.1.10 details the process for requesting such a deviation based on your specific facts and circumstances. Demonstrating that your necessary housing expenses surpass the standard, especially when no specific IRS standard is published for Hand County, strengthens your argument for a higher allowance. Unfortunately, regional shelter CPI data from the Bureau of Labor Statistics is not available for this specific region to show year-over-year changes.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS provides National Standards for essential living costs. For residents of Hand County, South Dakota, the monthly National Standard for Food, Clothing, and Other for a single individual is $812, increasing to $1478 for a two-person household, $1697 for three, and $1983 for a four-person household. These figures are based on the Bureau of Labor Statistics Consumer Expenditure Survey. Healthcare is another critical allowance; the IRS permits $75 per person per month for those under 65, and $153 per person per month for those 65 and over, derived from the Medical Expenditure Panel Survey. For transportation, Hand County residents can claim Local Standards. For one owned car, the allowance is $588 for ownership costs and $270 for operating costs, totaling $858 per month. For two cars, the allowance is $1176 for ownership and $270 for operating costs, totaling $1446. These transportation figures are based on Bureau of Labor Statistics data and American Automobile Association operating costs.

Qualifying for Currently Not Collectible (CNC) Status in South Dakota

Achieving Currently Not Collectible (CNC) status in South Dakota, including Hand County, is a critical relief option for taxpayers experiencing severe financial hardship. To qualify, you must demonstrate to the IRS that your allowable monthly expenses meet or exceed your monthly income, leaving no funds available to pay your tax debt. This process typically involves submitting a detailed Form 433-A, Collection Information Statement, which itemizes your income, assets, and expenses according to IRS Collection Financial Standards. For a single filer in Hand County, for example, your total allowable expenses might include $790.0 for a 1-bedroom HUD Fair Market Rent (or actual reasonable rent), $812 for National Standard food and other costs, $75 for out-of-pocket healthcare (under 65), and $858 for one-car transportation, totaling $2535.0. If your income is less than this, the IRS may place your account in CNC status under IRM 5.16.1. This status effectively pauses enforced collection actions, including wage levies (Form 668-W) and bank levies (Form 668-A), under IRC §6343. Importantly, while CNC status provides temporary relief, it does not stop the accrual of penalties and interest, nor does it extend the Collection Statute Expiration Date (CSED), which is generally 10 years from assessment under IRC §6502.

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Frequently Asked Questions

For Hand County, South Dakota, the IRS Collection Financial Standards for Housing and Utilities currently list 'N/A' for all household sizes. This means the IRS does not provide a pre-determined standard amount, and taxpayers must substantiate their actual, reasonable housing and utility expenses. For reference, the HUD FY2025 Fair Market Rent for a 2-bedroom unit in this area is $980.0 per month. If your actual, necessary housing costs exceed a standard, or if no standard is provided, you can request a deviation from the IRS. Internal Revenue Manual (IRM) 5.15.1.10 outlines the procedures for taxpayers to demonstrate that their specific circumstances warrant an allowance greater than the published standard, or to establish a reasonable allowance where none is published.
To qualify for Currently Not Collectible (CNC) status in South Dakota, you must demonstrate to the IRS that you lack the financial ability to pay your tax debt. This typically involves completing and submitting IRS Form 433-A, Collection Information Statement, which details your income, assets, and essential living expenses. The IRS will compare your total monthly income to your total allowable expenses, using the National and Local Collection Financial Standards. For instance, a single individual in Hand County would have a National Standard food, clothing, and other allowance of $812, a healthcare allowance of $75 (under 65), and a transportation allowance of $858 for one car. If your allowable expenses, including your reasonable housing costs (e.g., HUD FMR of $790.0 for a 1-bedroom), meet or exceed your income, the IRS may place your account in CNC status under IRM 5.16.1. This status pauses active collection efforts, including levies, but interest and penalties continue to accrue.
When the IRS issues a wage levy (Form 668-W) in Hand County, South Dakota, they do not take your entire paycheck. Instead, the amount exempt from levy is determined by your filing status and the number of claimed dependents, as outlined in IRS Publication 1494, 'Table for Figuring Amount Exempt from Levy.' For a single individual with no dependents, the monthly exempt amount for 2025 is $1096.67. For a single individual claiming one dependent, the exempt amount increases to $1680.0 per month. For a married individual filing jointly with no dependents, the exempt amount is also $1096.67, increasing to $2286.67 with one dependent. Any income above these specific exempt amounts can be levied by the IRS. This federal standard generally supersedes state wage garnishment limits, which typically follow the Consumer Credit Protection Act (CCPA) limits of 25% of disposable earnings or the amount above 30 times the federal minimum wage.
If your rent in Hand County, South Dakota, exceeds the IRS Collection Financial Standard, or if no standard is provided (as is the case with Hand County's 'N/A' for Housing and Utilities), you are not necessarily limited to a lower amount. The IRS allows for deviations from the published standards when a taxpayer can demonstrate that their actual, necessary expenses are higher. For example, if you are paying $980.0 per month for a 2-bedroom unit, which is the HUD FY2025 Fair Market Rent for this area, you would document this expense on Form 433-A. Internal Revenue Manual (IRM) 5.15.1.10 provides the guidelines for requesting such a deviation, emphasizing that the expenses must be reasonable and necessary for your health and welfare. Providing clear documentation, such as lease agreements and utility bills, is crucial to support your claim for a higher housing allowance, thereby reducing your calculated disposable income.
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 on the date your tax was assessed. This rule is established under Internal Revenue Code (IRC) §6502. It is crucial to understand that certain actions can pause or 'toll' this 10-year clock, effectively extending the IRS's time to collect. These actions include filing for bankruptcy, requesting a Collection Due Process (CDP) hearing, or submitting an Offer in Compromise (Form 656). While being placed in Currently Not Collectible (CNC) status under IRM 5.16.1 can provide significant relief from enforced collection actions like wage levies (Form 668-W) and bank levies (Form 668-A) under IRC §6343, it does not typically extend the CSED. Therefore, utilizing CNC status strategically can allow the CSED to expire while collection efforts are paused, potentially eliminating the debt.

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