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Hanson County, South Dakota IRS Wage Levy & Hardship Relief

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

Understanding IRS Collection Standards in Hanson County

For taxpayers in Hanson County, South Dakota facing IRS collection actions, understanding the IRS Collection Financial Standards is crucial. These standards, used to calculate a taxpayer's ability to pay on Form 433-A, Collection Information Statement, determine disposable income available for tax debt repayment. The IRS uses a combination of National and Local Standards to ensure taxpayers can afford basic living expenses. For a single individual in Hanson County, the monthly National Standard for Food, Clothing, and Other necessities is $812, comprising $449 for food, $44 for housekeeping supplies, $99 for apparel, $45 for personal care products, and $175 for miscellaneous items. While there are no specific IRS Local Housing & Utilities Standards provided for Hanson County, the IRS considers actual necessary expenses, subject to the local Fair Market Rent. If your income, after accounting for these allowances, leaves insufficient funds, you may qualify for economic hardship relief under IRC §6343(a)(1)(D). These vital figures are derived from authoritative sources including IRS.gov, the Bureau of Labor Statistics (BLS), and the US Census Bureau.

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

When assessing your ability to pay in Hanson County, South Dakota, the IRS typically refers to Local Housing & Utilities Standards. However, for Hanson County, these specific IRS standards are not available, indicated by $N/A. In such cases, the IRS evaluates your actual housing and utility expenses, which must be deemed reasonable and necessary. A key reference point for reasonableness is the US Department of Housing and Urban Development (HUD) Fair Market Rent (FMR) data for the area. For example, the FY2025 HUD FMR for a 2-bedroom residence in Hanson County is $930.0 per month. If your actual housing expenses exceed what the IRS might typically allow, or if your local FMR is higher than a non-existent IRS standard, you can request a deviation from the standard per Internal Revenue Manual (IRM) 5.15.1.10. This deviation argument is strengthened when your necessary rent aligns with or is below the local FMR. While regional shelter CPI data is not available for this specific region, the HUD FMR provides a clear benchmark for reasonable housing costs in Hanson County.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS Collection Financial Standards for Hanson County, South Dakota, provide specific allowances for other essential living expenses. The National Standards for Food, Clothing & Other are uniform across the U.S., allowing a single person $812 per month, increasing to $1,478 for a two-person household, $1,697 for three, and $1,983 for a four-person household, with an additional $357 for each extra person. These are based on the Bureau of Labor Statistics Consumer Expenditure Survey. For healthcare, the National Standards allow $75 per person monthly for those under 65, and $153 per person monthly for those 65 and over, derived from the Medical Expenditure Panel Survey. For transportation in Hanson County, the IRS Local Standards (based on BLS data and AAA operating costs) provide an allowance of $588 per month for one owned car (covering payments) and an additional $270 per month for operating costs (fuel, maintenance), totaling $858 per month for one vehicle. For two owned cars, the total allowance is $1,446 ($1,176 ownership + $270 operating).

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

Achieving Currently Not Collectible (CNC) status under Internal Revenue Code (IRC) §6343 is a critical form of relief for taxpayers in Hanson County, South Dakota, who demonstrate an inability to pay their tax debt. To qualify, you must submit a detailed financial statement, typically Form 433-A, Collection Information Statement, to the IRS. The IRS will then compare your total monthly income against your total allowable monthly expenses, using the Collection Financial Standards. For a single filer in Hanson County, allowable expenses might include an estimated $930.0 for housing (based on 2BR HUD FMR for illustration, as local IRS standard is N/A), $812 for food/clothing/other, $75 for healthcare (under 65), and $858 for transportation (one car ownership + operating), totaling $2675.0. If your income does not exceed these allowable expenses, the IRS may place your account in CNC status, temporarily halting enforced collection actions like wage levies (Form 668-W) and bank levies (Form 668-A), as outlined in IRM 5.16.1. Importantly, while CNC status pauses collection, it does not stop interest and penalties from accruing, nor does it extend the Collection Statute Expiration Date (CSED) under IRC §6502, which is generally 10 years from the assessment date.

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Frequently Asked Questions

For Hanson County, South Dakota, the IRS does not provide a specific Local Standard for Housing & Utilities, indicated by $N/A in their Collection Financial Standards. This means the IRS will evaluate your actual, necessary housing expenses. However, these expenses must be considered reasonable. A significant benchmark for reasonableness is the U.S. Department of Housing and Urban Development (HUD) Fair Market Rent (FMR). For FY2025, the HUD FMR for a 2-bedroom residence in Hanson County is $930.0 per month. If your actual rent is at or below this FMR, it is generally considered reasonable. If your necessary expenses exceed typical local rates, you may need to request a deviation from the standard, providing documentation to support your claim, as detailed in IRM 5.15.1.10.
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 after covering necessary living expenses. This process begins by filing Form 433-A, Collection Information Statement, which details your income, assets, and expenses. The IRS will compare your gross monthly income against its National and Local Collection Financial Standards. For example, a single person in Hanson County can claim $812 for food, clothing, and other necessities, and $858 for one car's transportation costs. If your total allowable expenses (including housing, healthcare, and other necessary costs) equal or exceed your income, the IRS may place your account in CNC status, as per IRM 5.16.1. This temporarily stops collection efforts but does not eliminate the debt.
If the IRS issues a wage levy (Form 668-W) in Hanson County, South Dakota, the amount they can seize from your paycheck is determined by IRS Publication 1494. This publication provides a table for figuring the amount exempt from levy, ensuring you retain enough for basic living expenses. For 2025, a single taxpayer with zero dependents is exempt $1,096.67 per month. A single taxpayer with one dependent is exempt $1,680.0 per month. For a married individual filing jointly with zero dependents, the exemption is also $1,096.67, while with one dependent, it rises to $2,286.67. Any disposable earnings above these amounts can be levied. State wage garnishment laws in South Dakota follow federal Consumer Credit Protection Act (CCPA) limits, which cap garnishments at 25% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum wage, whichever is less. However, IRS levies often take precedence and are calculated using Publication 1494.
In Hanson County, South Dakota, the IRS does not publish a specific Local Standard for Housing & Utilities. Therefore, the IRS assesses your actual, necessary housing expenses. If your rent is higher than what the IRS might typically deem reasonable for your household size, you have the opportunity to justify these expenses. The HUD Fair Market Rent (FMR) for the area, such as $930.0 for a 2-bedroom residence in FY2025, serves as an important benchmark. If your rent exceeds this FMR, you may need to provide documentation proving the necessity of your higher costs, such as medical needs requiring a larger space or limited availability of affordable housing. Under IRM 5.15.1.10, taxpayers can request a deviation from standard allowances if their actual, necessary expenses exceed the published standards or, in this case, exceed what the IRS might consider reasonable based on local FMRs.
The IRS generally has 10 years to collect a tax debt, a period known as the Collection Statute Expiration Date (CSED), established by Internal Revenue Code (IRC) §6502. This 10-year clock typically starts from the date your tax liability was assessed. Several events can 'toll' or pause this 10-year period, effectively extending the IRS's collection time. These 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 halts active collection efforts, it does not extend the CSED itself. However, certain actions related to CNC, such as the period during which an Offer in Compromise is pending or for a short time after its rejection, can indeed toll the statute. Understanding your CSED is crucial for developing a long-term resolution strategy for your tax debt in Hanson County, South Dakota.

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