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IRS Wage Levy & Hardship Assistance for Izard County, Arkansas Taxpayers

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

Understanding IRS Collection Standards in Izard County, Arkansas

When the IRS evaluates a taxpayer's ability to pay, particularly for an Offer in Compromise (OIC) or Currently Not Collectible (CNC) status, they meticulously review financial information submitted on Form 433-A, 'Collection Information Statement for Wage Earners and Self-Employed Individuals.' This process involves calculating disposable income by subtracting necessary living expenses from gross income. These allowable expenses are determined by a combination of IRS National and Local Standards, which are derived from various authoritative sources including the Bureau of Labor Statistics (BLS) and the US Census Bureau. For a single individual in Izard County, Arkansas, the IRS allows $812 monthly for food, clothing, and other necessities. While specific local housing and utilities standards are not provided for Izard County by the IRS, actual, reasonable expenses are considered. Understanding these standards is critical, as the IRS must release a levy if it creates an economic hardship, as outlined in Internal Revenue Code (IRC) §6343(a)(1)(D).

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

For Izard County, Arkansas, the IRS Collection Financial Standards do not provide a specific Local Standard for Housing and Utilities. This means taxpayers are generally allowed to claim their actual, reasonable housing and utility expenses. This is a crucial distinction, as it prevents the IRS from imposing a potentially inadequate cap on essential living costs. For comparison, the Department of Housing and Urban Development (HUD) reports the FY2025 Fair Market Rent (FMR) for a 2-bedroom unit in Izard County, Arkansas, at $900.0 per month. If a taxpayer's actual rent or mortgage payment, combined with reasonable utilities, exceeds what might typically be allowed in areas with specific IRS local standards, this strengthens an argument for a deviation. Internal Revenue Manual (IRM) 5.15.1.10 permits IRS personnel to allow amounts exceeding the National or Local Standards when justified by the facts and circumstances. It is important to note that regional shelter CPI data is not available for this specific region from the Bureau of Labor Statistics.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS provides National Standards for essential living expenses. For food, clothing, and other necessities, a single individual in Izard County, Arkansas, is allowed $812 per month, while a family of four can claim $1,983. These figures are based on the Bureau of Labor Statistics Consumer Expenditure Survey. Healthcare costs are also factored in; the IRS allows $75 per person monthly for those under 65 and $153 per person for those 65 and over, derived from the Medical Expenditure Panel Survey. Transportation is another significant allowance. For a household owning one car in Izard County, Arkansas, the total monthly allowance is $858, which comprises $588 for ownership costs (e.g., car payment, insurance) and an additional $270 for operating costs (e.g., fuel, maintenance). These transportation allowances are based on Bureau of Labor Statistics data and American Automobile Association operating costs, ensuring a comprehensive view of necessary expenses.

Qualifying for Currently Not Collectible (CNC) Status in Arkansas

Achieving Currently Not Collectible (CNC) status in Arkansas offers a temporary reprieve from IRS enforced collection actions, such as wage levies (Form 668-W) and bank levies (Form 668-A). 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 process begins by filing Form 433-A, 'Collection Information Statement for Wage Earners and Self-Employed Individuals,' detailing your income, assets, and expenses. For a single filer in Izard County, Arkansas, for example, monthly allowable expenses could include a reasonable housing cost (e.g., based on HUD FMR of $900.0 for a 2BR), plus $812 for food, clothing, and other items, $75 for healthcare (under 65), and $858 for one-car transportation, totaling $2,645.0. If your income is less than or equal to this total, you may qualify for CNC. Internal Revenue Manual (IRM) 5.16.1 outlines the procedures for determining CNC status, and upon approval, the IRS will generally release any existing levies under IRC §6343. It's crucial to understand that while CNC status halts active collection, it does not erase the debt, and the 10-year Collection Statute Expiration Date (CSED) under IRC §6502 continues to run.

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Frequently Asked Questions

For Izard County, Arkansas, the IRS does not publish a specific Local Standard for Housing & Utilities in its Collection Financial Standards for 2025. This means taxpayers are generally allowed to claim their actual, reasonable housing and utility expenses on Form 433-A. For context, the HUD FY2025 Fair Market Rent for a 2-bedroom unit in Izard County is $900.0 per month. If your actual housing costs exceed what the IRS might otherwise allow in areas with specific standards, you can argue for a deviation based on your specific circumstances, as permitted by IRM 5.15.1.10. This flexibility is beneficial for taxpayers in Izard County who may face unique housing costs.
To qualify for Currently Not Collectible (CNC) status in Arkansas, you must prove to the IRS that you lack the financial ability to pay your tax debt after covering necessary living expenses. This is primarily done by completing and submitting Form 433-A, 'Collection Information Statement for Wage Earners and Self-Employed Individuals,' which details your income, assets, and all allowable monthly expenses based on IRS National and Local Standards. For example, a single person in Izard County, Arkansas, could combine National Standards like $812 for food, clothing, and other items, $75 for healthcare (under 65), and $858 for transportation, along with their actual reasonable housing costs (e.g., $900.0 based on HUD FMR for a 2BR). If your total income does not exceed these combined allowable expenses, the IRS may place your account in CNC status, temporarily halting enforced collection actions like wage levies (Form 668-W), as per IRM 5.16.1.
The IRS can levy a portion of your wages using Form 668-W, 'Notice of Levy on Wages, Salary, and Other Income.' However, a significant portion of your earnings is exempt from levy to ensure you can meet basic living expenses. According to IRS Publication 1494 (2025), a single individual in Izard County, Arkansas, with zero dependents, is exempt from levy on $1,096.67 of their monthly wages. If that same single individual claims one dependent, their monthly exempt amount increases to $1,680.0. For married individuals filing jointly with one dependent, the exempt amount is $2,286.67 per month. The IRS will only levy the amount of your disposable earnings that exceeds these statutory exempt amounts. It's important to review your specific situation against Publication 1494 to understand your exact protected income.
If your actual rent or mortgage payment in Izard County, Arkansas, exceeds the general IRS Collection Financial Standards, you have a strong basis to argue for an allowance of your actual, reasonable expenses. Since the IRS does not provide a specific Local Standard for Housing & Utilities for Izard County, taxpayers are expected to claim their actual costs. For instance, if your rent is $900.0 for a 2-bedroom unit, aligning with the HUD FY2025 Fair Market Rent for the area, this would be considered a reasonable and allowable expense. Internal Revenue Manual (IRM) 5.15.1.10 explicitly allows IRS revenue officers to deviate from standard allowances when a taxpayer can demonstrate, through documentation, that actual necessary expenses exceed the standard. This provision is critical for taxpayers in areas without specific IRS local housing standards, like Izard County, Arkansas.
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 an account into Currently Not Collectible (CNC) status in Arkansas halts active collection efforts, it does not extend the CSED. The 10-year clock continues to run during the CNC period. This means that if your debt remains in CNC status for the entire duration of the remaining CSED, the IRS will eventually be barred from collecting the debt. Understanding your CSED is a critical component of any long-term tax resolution strategy, especially when considering options like CNC status or an Offer in Compromise (Form 656).

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