IRS Levy Hardship Analyzer ← Free Analysis Tool

Hillsborough County, New Hampshire: Navigating IRS Wage Levy & Hardship Tax Relief

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

Understanding IRS Collection Standards in Hillsborough County, NH

Taxpayers in Hillsborough County, New Hampshire facing IRS collection actions, such as wage levies or bank levies, must understand how the IRS determines their ability to pay. This assessment is primarily conducted using Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals. The IRS calculates a taxpayer's disposable income by comparing their total income against a set of National and Local Standards. For a single person in Hillsborough County, the monthly National Standard for food, clothing, and other necessities is $812, derived from Bureau of Labor Statistics Consumer Expenditure Survey data. While specific local housing and utilities standards are not published for this area, the IRS generally allows actual, reasonable housing expenses up to the local Fair Market Rent (FMR) as determined by HUD. If a taxpayer's allowable expenses exceed their income, they may qualify for economic hardship relief under IRC §6343(a)(1)(D), preventing or releasing a levy. These critical financial benchmarks are sourced from IRS.gov Collection Financial Standards, which compile data from the BLS and US Census Bureau.

Hillsborough County, NH Housing & Utilities Allowance vs. HUD Fair Market Rent

For Hillsborough County, NH (part) HUD Metro FMR Area, specific IRS Local Standards for Housing & Utilities are listed as 'N/A' in the Collection Financial Standards. In such cases, the IRS will typically allow a taxpayer's actual, reasonable housing expenses, provided they do not exceed the local Fair Market Rent (FMR) established by the U.S. Department of Housing and Urban Development (HUD). For instance, the HUD FY2025 FMR for a 2-bedroom residence in this area is $1810.0 per month. If a taxpayer's actual rent, mortgage, or utility costs exceed even the HUD FMR, they can submit a request for a deviation from the standard, as outlined in IRM 5.15.1.10. This requires substantiation of the higher expense and a compelling reason for its necessity. The absence of specific IRS housing standards for Hillsborough County, coupled with the published HUD FMR data, means that taxpayers with documented housing costs up to these FMRs (e.g., $1380.0 for a 1-bedroom) have a strong basis for their expense allowance. Regional Shelter CPI data for this area is currently not available from the Bureau of Labor Statistics.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS provides allowances for essential living costs. The National Standards for Food, Clothing, and Other expenses are crucial for taxpayers in Hillsborough County, New Hampshire. For a single individual, this allowance is $812 per month, while a family of four can claim $1983, based on Bureau of Labor Statistics Consumer Expenditure Survey data. Healthcare is another critical component, with National Standards allowing $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, Hillsborough County residents can claim Local Standards. For a single car, the ownership cost is $588 per month, and the operating cost for this region is $270 per month, totaling $858. For two cars, the total allowance is $1176 for ownership plus $270 for operating, reaching $1446. These figures are based on Bureau of Labor Statistics data and American Automobile Association operating costs, providing a comprehensive picture of allowable expenses.

Qualifying for Currently Not Collectible (CNC) Status in New Hampshire

Achieving Currently Not Collectible (CNC) status can provide significant relief from IRS enforced collection in New Hampshire. To qualify, taxpayers must demonstrate through Form 433-A that their income is insufficient to cover basic living expenses, leaving no disposable income to pay their tax debt. The IRS evaluates income against the National and Local Standards discussed, including housing, food, healthcare, and transportation. For example, a single filer in Hillsborough County might claim a reasonable actual housing expense (e.g., $1380.0 for a 1-bedroom apartment based on HUD FMR), plus $812 for food, $75 for healthcare (under 65), and $858 for transportation, totaling $3125.0 in monthly allowable expenses. If their net monthly income is less than or equal to this amount, they may qualify for CNC. IRM 5.16.1 outlines the procedures for placing an account in CNC status, which mandates the release of any existing levies under IRC §6343. Importantly, while in CNC, the IRS collection statute of limitations (CSED) under IRC §6502, generally 10 years from assessment, continues to run, meaning CNC status does not extend the time the IRS has to collect.

🏛️ Free IRS Levy Hardship Analysis

Are you facing an IRS wage levy or struggling with tax debt in Hillsborough County, NH (part) HUD Metro FMR Area? Don't navigate this complex process alone. Use our free IRS Levy Hardship Analyzer tool with your specific ZIP code to understand your options.

Analyze Your Situation

Frequently Asked Questions

For Hillsborough County, NH (part) HUD Metro FMR Area, specific IRS housing and utilities standards are not published, indicated as 'N/A' in the Collection Financial Standards. This means the IRS will generally allow your actual, reasonable housing expense. However, this allowance is typically capped by the local HUD Fair Market Rent (FMR). For instance, the HUD FY2025 FMR for a 1-bedroom residence in this area is $1380.0 per month, and a 2-bedroom is $1810.0 per month. If your actual housing costs exceed these FMRs, you may need to request a deviation as per IRM 5.15.1.10, providing strong justification for the higher expense. Always be prepared to provide documentation for your claimed housing and utility costs.
To qualify for Currently Not Collectible (CNC) status in New Hampshire, you must demonstrate to the IRS that you lack the financial ability to pay your tax debt. This process involves submitting Form 433-A, Collection Information Statement, detailing your income, assets, and monthly living expenses. The IRS will compare your income against established National and Local Standards. For a single individual, this includes $812 for food and other necessities, $75 for healthcare (under 65), and $858 for transportation (one car). If your total allowable expenses equal or exceed your income, leaving no disposable income, the IRS may place your account in CNC status, as outlined in IRM 5.16.1. This temporary status means the IRS will stop active collection efforts.
When the IRS issues a wage levy (Form 668-W), the amount taken from your paycheck is determined by IRS Publication 1494, 'Table for Figuring Amount Exempt from Levy.' This table specifies a portion of your wages that is exempt from levy, calculated based on your filing status and number of dependents. For example, a single taxpayer with zero dependents in 2025 has $1096.67 per month exempt from levy. A married taxpayer filing jointly with one dependent has $2286.67 per month exempt. Only income exceeding these exempt amounts can be levied. New Hampshire follows federal CCPA limits, which are generally less restrictive than IRS levies. The IRS is authorized to levy wages under IRC §6331, but they must leave you with enough to meet basic living expenses.
Since the IRS does not publish specific housing standards for Hillsborough County, NH, it generally allows your actual, reasonable housing expenses up to the local HUD Fair Market Rent (FMR). For example, the HUD FY2025 FMR for a 2-bedroom apartment is $1810.0. If your actual rent exceeds this FMR (e.g., you pay $2000 for a 2-bedroom), you would need to request a deviation from the standard. As per IRM 5.15.1.10, you must provide detailed documentation and a compelling justification for the higher expense, such as medical necessity, special needs, or unavoidable circumstances. Without proper justification and documentation, the IRS may limit your housing allowance to the FMR or a lower reasonable amount.
The IRS generally has 10 years from the date a tax liability is assessed to collect the debt. This period is known as the Collection Statute Expiration Date (CSED), established by IRC §6502. While in Currently Not Collectible (CNC) status, the 10-year CSED continues to run, which can be a strategic advantage for taxpayers. However, certain actions can suspend or extend the CSED, including filing an Offer in Compromise (Form 656), requesting a Collection Due Process (CDP) appeal, filing for bankruptcy, or living outside the U.S. for an extended period. Understanding your CSED is crucial for managing your tax debt and exploring resolution options, as the IRS cannot legally collect a debt after this period expires.

Sources & Methodology