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Hill County, Montana IRS Wage Levy & Hardship Relief

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

Understanding IRS Collection Standards in Hill County

When the IRS initiates enforced collection actions in Hill County, Montana, such as wage or bank levies, your ability to pay is rigorously assessed. This assessment typically involves filing IRS Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals. The IRS calculates your disposable income by comparing your gross income against a set of allowable living expenses, derived from both National and Local Standards. For a single individual in Hill County, the National Standard for Food, Clothing, and Other necessities is $812 per month, with $449 allocated specifically for food. While specific IRS Local Housing and Utilities Standards are not available for Hill County, MT, the IRS will consider actual, reasonable expenses. If your essential living expenses exceed your income, you may qualify for economic hardship relief under Internal Revenue Code (IRC) §6343(a)(1)(D). These crucial financial standards are sourced from IRS.gov Collection Financial Standards, which integrates data from the Bureau of Labor Statistics (BLS) and the U.S. Census Bureau.

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

For taxpayers in Hill County, Montana, it is important to note that the IRS does not provide a specific Local Standard for Housing and Utilities. Instead of a pre-determined allowance, the IRS will consider your actual, reasonable housing and utility expenses. This situation, where a standard is listed as 'N/A,' requires taxpayers to substantiate their actual costs. For context, the U.S. Department of Housing and Urban Development (HUD) Fair Market Rent (FMR) for FY2025 in Hill County, MT, indicates a 2-bedroom unit at $1320.0 per month. If your actual housing costs are reasonable and meet or exceed this HUD FMR figure, it strengthens your argument for a necessary expense. Internal Revenue Manual (IRM) 5.15.1.10 outlines the procedures for deviating from national or local standards when a taxpayer's actual expenses are greater than the allowed amounts, which is directly applicable when a local standard is N/A. While regional Shelter CPI data for Hill County is not available from the Bureau of Labor Statistics, the lack of a specific IRS standard means your documented actual housing costs are paramount.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS allows for other essential living expenses in Hill County, Montana. The National Standards for Food, Clothing, and Other necessary expenses are set at $812 per month for a single person, $1478 for a two-person household, and $1983 for a four-person household, with an additional $357 for each subsequent person. These figures are derived from the Bureau of Labor Statistics Consumer Expenditure Survey. For healthcare, the National Standards for Out-of-Pocket Healthcare allow $75 per person per month for individuals under 65 and $153 per person per month for those 65 and over, based on data from the Medical Expenditure Panel Survey. Transportation is also a critical expense; for Hill County, the IRS Local Standards allow $588 per month for one owned car (ownership costs) and an additional $270 per month for operating costs in this region, totaling $858 per month for one vehicle. For two owned cars, the total allowance is $1446 per month. 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 Montana

For taxpayers in Hill County, Montana, facing severe financial hardship, Currently Not Collectible (CNC) status offers a vital reprieve from IRS enforced collection. To qualify, you must submit a completed IRS Form 433-A, which details your income, assets, and expenses. The IRS will then compare your total monthly income against your total allowable expenses, including the National and Local Standards discussed previously. For example, a single filer in Hill County demonstrating allowable expenses (using HUD FMR for housing since the IRS standard is N/A) could show $1320.0 for housing, $812 for food/clothing/other, $75 for healthcare, and $858 for transportation, totaling $3065 in monthly expenses. If your income does not exceed these essential expenses, the IRS may determine you lack the ability to pay and place your account into CNC status. This determination, outlined in IRM 5.16.1, means the IRS temporarily stops collection efforts, and any active levies, such as a wage levy (Form 668-W) or bank levy (Form 668-A), will be released under IRC §6343. Importantly, CNC status does not extend the Collection Statute Expiration Date (CSED), which is generally 10 years from the date of assessment under IRC §6502.

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Frequently Asked Questions

For Hill County, Montana, the IRS does not publish a specific Local Standard for Housing and Utilities. Instead, the IRS will evaluate your actual, reasonable housing and utility expenses, requiring you to provide documentation of these costs. For reference, the U.S. Department of Housing and Urban Development (HUD) Fair Market Rent for FY2025 in Hill County is $1320.0 for a 2-bedroom unit. Taxpayers should ensure their documented expenses are justifiable. This approach is consistent with IRS.gov Collection Financial Standards when local data is not available, allowing for a more tailored assessment of your financial situation.
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 necessary living expenses. This process begins by submitting IRS Form 433-A, Collection Information Statement. The IRS will review your income, assets, and expenses against their National and Local Standards. For instance, if your documented monthly expenses for housing, food ($812 for a single person), healthcare ($75 for under 65), and transportation ($858 for one car) exceed your income, you may be eligible. IRM 5.16.1 details the procedures for determining CNC status, which involves proving that payment would cause economic hardship, thereby halting collection efforts.
When the IRS issues a wage levy (Form 668-W) in Hill County, Montana, the amount taken from your paycheck is determined by IRS Publication 1494. This publication outlines specific levy exemption amounts based on your filing status and number of dependents. For 2025, a single taxpayer with zero dependents has a monthly exempt amount of $1096.67, while a single taxpayer with one dependent is exempt for $1680.0 per month. For a married individual filing jointly with zero dependents, the exempt amount is $1096.67, increasing to $2286.67 with one dependent. Any income above these exempt amounts can be levied. State wage garnishment laws in Montana generally follow federal CCPA limits, which cap garnishment at 25% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum wage, but federal tax levies are statutory and take precedence.
If your rent in Hill County, Montana, exceeds the IRS housing standard, it's crucial to understand that for this area, the IRS actually lists the housing standard as 'N/A.' This means the IRS does not have a pre-determined maximum amount. Instead, they will consider your actual, reasonable housing expenses. For example, if your actual rent is $1320.0 for a 2-bedroom unit, which aligns with the HUD FY2025 Fair Market Rent for Hill County, you should document this. IRM 5.15.1.10 provides guidance for situations where a taxpayer's actual necessary expenses exceed the established National or Local Standards, allowing for a deviation when substantiated. You must be prepared to provide proof that your housing costs are necessary and reasonable for your circumstances.
The IRS generally has 10 years to collect a tax debt, a period known as the Collection Statute Expiration Date (CSED), as mandated by Internal Revenue Code (IRC) §6502. This 10-year period typically starts from the date the tax was assessed. While placing your account into Currently Not Collectible (CNC) status in Hill County, Montana, temporarily stops active collection efforts, it does not extend this 10-year CSED. The clock continues to run, even if your account is in CNC status. This means that if the IRS has not collected the debt by the time the CSED expires, the debt is legally uncollectible. Understanding the CSED is a critical component of any long-term tax resolution strategy, especially when pursuing CNC status.

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