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Jefferson County, Montana: Navigating IRS Wage Levy and Hardship Status

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

Understanding IRS Collection Standards in Jefferson County

When facing IRS collection actions in Jefferson County, Montana, understanding the Internal Revenue Service's Collection Financial Standards is paramount. The IRS uses these standards, outlined on Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals, to determine a taxpayer's ability to pay their tax debt. These standards allow for necessary living expenses before calculating disposable income available for tax payments. For instance, the National Standards for Food, Clothing & Other for a single person are $812 per month, comprising $449 for food, $44 for housekeeping, $99 for apparel, $45 for personal care, and $175 for miscellaneous expenses. The IRS derives these figures from critical data sources, including IRS.gov Collection Financial Standards, Bureau of Labor Statistics (BLS) Consumer Expenditure Survey, and US Census Bureau American Community Survey data. If your allowable expenses exceed your income, the IRS may determine that collection would cause an 'economic hardship,' leading to a potential levy release under IRC §6343(a)(1)(D).

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

For Jefferson County, MT HUD Metro FMR Area, the IRS Collection Financial Standards currently show 'N/A' for the specific Housing & Utilities allowance. In such cases, the IRS will generally allow actual necessary expenses, which are often benchmarked against local economic data. For example, the HUD FY2025 Fair Market Rent (FMR) data for a 2-bedroom residence in this area is $1380.0 per month. If your actual housing costs exceed the general IRS Local Standards (when available), or if your housing costs are higher than what the IRS might initially allow, you can argue for a deviation under Internal Revenue Manual (IRM) 5.15.1.10, 'Considering Deviations from National and Local Standards.' This deviation is particularly strong if your housing expenses are aligned with or below the HUD FMR for your household size. While regional shelter CPI data is not available for this specific region, demonstrating actual, necessary expenses that exceed standard allowances is crucial for a successful deviation argument.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS Collection Financial Standards provide specific allowances for other essential living expenses in Jefferson County, Montana. The National Standards for Food, Clothing & Other allow $812 per month for a single individual, increasing to $1478 for a two-person household, $1697 for three people, and $1983 for a family of four, with an additional $357 for each extra person. These figures are based on 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, derived from the Medical Expenditure Panel Survey. Regarding transportation in the region covering Jefferson County, Montana, the IRS allows $588 for one car ownership and $270 for operating costs, totaling $858 per month for a single vehicle. 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

Achieving Currently Not Collectible (CNC) status in Montana means the IRS has determined you lack the financial ability to pay your tax debt, temporarily halting active collection efforts. To qualify, you must typically file Form 433-A, Collection Information Statement, detailing your income, assets, and allowable expenses. The IRS then compares your total income against your total allowable expenses using the National and Local Standards. For a single filer in Jefferson County, using the HUD FMR as a benchmark for housing, your allowable expenses could include $1080.0 for a 1-bedroom housing (or your actual necessary amount if higher and justified), $812 for food, clothing & other, $75 for healthcare (if under 65), and $858 for transportation. If your total allowable expenses ($1080.0 + $812 + $75 + $858 = $2825.0) exceed your monthly income, you may qualify for CNC. IRM 5.16.1 outlines the procedures for CNC determinations, and if approved, the IRS will typically release any existing levies under IRC §6343. It's crucial to remember that CNC status does not erase the debt; the 10-year Collection Statute Expiration Date (CSED) under IRC §6502 continues to run, but the IRS will periodically review your financial situation.

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Frequently Asked Questions

For Jefferson County, MT HUD Metro FMR Area, the IRS Collection Financial Standards for Housing & Utilities are currently marked as 'N/A.' In such situations, the IRS will consider your actual, necessary housing expenses. For reference, the HUD FY2025 Fair Market Rent for a 1-bedroom apartment in this area is $1080.0, and for a 2-bedroom, it is $1380.0. If your rent or mortgage falls within these reasonable local benchmarks, it strengthens your case for allowance. If your actual expenses exceed typical allowances, you may need to request a deviation, as outlined in IRM 5.15.1.10, by providing documentation that your expenses are necessary and reasonable given your circumstances.
To qualify for Currently Not Collectible (CNC) status in Montana, you must demonstrate to the IRS that you do not have the financial ability to pay your tax debt. This process typically involves submitting Form 433-A, Collection Information Statement, detailing all your income, assets, and monthly expenses. The IRS then compares your income against the IRS National and Local Collection Financial Standards. For example, a single person in Jefferson County could have allowable expenses including $812 for food, clothing & other, $75 for healthcare (under 65), and $858 for transportation (one car). If your total necessary monthly expenses, including an allowable housing cost (e.g., $1080.0 for a 1BR based on HUD FMR for Jefferson County), exceed your monthly income, the IRS may place your account in CNC status, temporarily halting collection actions under IRM 5.16.1 procedures.
The amount the IRS can levy from your paycheck in Jefferson County, MT, is determined by IRS Publication 1494, 'Table for Figuring Amount Exempt from Levy.' This publication outlines specific monthly exemption amounts based on your filing status and number of dependents, which are protected from a wage levy (Form 668-W). For instance, a single individual with zero dependents has $1096.67 exempt from levy each month. If that same single individual has one dependent, the exempt amount increases to $1680.0 per month. For a married individual filing jointly with zero dependents, $1096.67 is also exempt, rising to $2286.67 with one dependent. The IRS only levies the portion of your net wages that exceeds these statutory exemption amounts, ensuring a minimum amount is left for basic living expenses.
If your rent or mortgage in Jefferson County, MT, exceeds the IRS Local Standards (which are currently 'N/A' for housing in this area, meaning actual necessary expenses are considered), you can still argue for the full amount to be allowed. The IRS acknowledges that in some regions, housing costs can be higher. You would need to demonstrate that your housing expense is necessary and reasonable for your household size and location. Referencing the HUD FY2025 Fair Market Rent data, such as $1380.0 for a 2-bedroom in Jefferson County, MT HUD Metro FMR Area, can support your claim. Under IRM 5.15.1.10, 'Considering Deviations from National and Local Standards,' you can request a deviation by providing specific documentation to justify your higher expense, which is crucial to preventing a wage or bank levy (Form 668-A).
The IRS generally has 10 years to collect a tax debt, a period known as the Collection Statute Expiration Date (CSED), as defined by Internal Revenue Code (IRC) §6502. This 10-year clock typically starts from the date the tax was assessed. While being placed in Currently Not Collectible (CNC) status in Montana temporarily halts active collection efforts, it does not extend the CSED. The clock continues to run, offering a strategic advantage for taxpayers who can maintain CNC status. However, certain actions, like filing for bankruptcy or offering an Offer in Compromise (Form 656), can toll (pause) the CSED. Understanding your CSED is critical for developing an effective tax resolution strategy, especially if you are in CNC status, as it means the debt could expire without being fully collected.

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