IRS Levy Hardship Analyzer ← Free Analysis Tool

Jones County, South Dakota: IRS Wage Levy & Hardship Tax Relief 2025

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

Understanding IRS Collection Standards in Jones County

For taxpayers in Jones County, South Dakota, facing IRS collection actions, understanding the IRS Collection Financial Standards is paramount. The IRS uses these standards, outlined on Form 433-A, Collection Information Statement, to determine a taxpayer's ability to pay and calculate disposable income. These standards are derived from comprehensive data sources including IRS.gov, the Bureau of Labor Statistics (BLS) Consumer Expenditure Survey, and the US Census Bureau. For instance, a single individual in Jones County is allowed $812 monthly for food, clothing, and other necessities. While Jones County, SD, does not have specific local housing standards, the IRS evaluates actual housing costs for reasonableness. If a taxpayer's income, after accounting for these necessary expenses, leaves no funds to pay the tax debt, the IRS may consider the situation an economic hardship, as defined by IRC §6343(a)(1)(D), potentially leading to levy release or Currently Not Collectible (CNC) status. Accurate reporting on Form 433-A is critical for demonstrating your financial position.

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

Residents of Jones County, South Dakota, will find that the IRS Collection Financial Standards do not provide specific local housing and utilities allowances, listing them as $N/A for all household sizes. This means that taxpayers must substantiate their actual, reasonable, and necessary housing expenses on Form 433-A. In such cases, the IRS evaluates these expenses individually, and a common benchmark for reasonableness is the Department of Housing and Urban Development (HUD) Fair Market Rent (FMR) data. For FY2025, the HUD FMR for Jones County, SD, indicates a 2-bedroom unit at $960.0 per month. If your actual housing costs exceed what the IRS might consider reasonable, based on local market data, you can request a deviation from the standard under Internal Revenue Manual (IRM) 5.15.1.10. Providing documentation to justify higher essential housing expenses, especially when local standards are not provided, strengthens your argument for economic hardship. Unfortunately, regional Shelter CPI data for this specific region is not available from the Bureau of Labor Statistics to provide a year-over-year comparison.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS provides National Standards for Food, Clothing & Other expenses, which are applicable to taxpayers in Jones County, SD. For a single individual, this allowance is $812 monthly, breaking down to $449 for food, $44 for housekeeping supplies, $99 for apparel and services, $45 for personal care products, and $175 for miscellaneous items. A family of four is allotted $1983 monthly. These figures are derived from the Bureau of Labor Statistics Consumer Expenditure Survey. For healthcare, the IRS 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 the Medical Expenditure Panel Survey. Regarding transportation, Jones County, SD, residents can claim a Local Standard of $588 per month for the ownership costs of one car, or $1176 for two cars. Additionally, an operating cost allowance of $270 per month is provided for the region. Thus, a single car owner can claim a total of $858 per month ($588 ownership + $270 operating) for transportation, based on BLS data and American Automobile Association operating costs.

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

Achieving Currently Not Collectible (CNC) status in South Dakota, particularly for taxpayers in Jones County, requires a detailed financial assessment to demonstrate economic hardship. This process involves submitting Form 433-A, Collection Information Statement, to the IRS, detailing your income, assets, and monthly expenses. The IRS then compares your total income against your total allowable expenses, using the National and Local Standards. For example, a single filer in Jones County, SD, might demonstrate necessary expenses including an actual housing cost (potentially benchmarked around the $960.0 HUD FMR for a 2BR), plus $812 for food, clothing, and other items, $75 for healthcare (if under 65), and $858 for one-car transportation. If your allowable expenses exceed your income, leaving no disposable income to pay the tax debt, the IRS may place your account in CNC status under Internal Revenue Manual (IRM) 5.16.1. This status temporarily halts enforced collection actions, including wage levies (IRC §6331), and can lead to the release of existing levies under IRC §6343. Importantly, CNC status does not extend the Collection Statute Expiration Date (CSED) under IRC §6502, meaning the 10-year collection window continues to run.

🏛️ Free IRS Levy Hardship Analysis

If you're facing an IRS wage levy or considering hardship status in Jones County, South Dakota, understanding these complex rules is essential. Use our free IRS Levy Hardship Analyzer tool with your Jones County, SD ZIP code to assess your options and protect your financial future.

Analyze Your Situation

Frequently Asked Questions

Jones County, South Dakota, does not have specific IRS Local Housing Standards for 2025, with the Collection Financial Standards listing them as $N/A for all household sizes. This means taxpayers in Jones County must substantiate their actual, necessary housing expenses on Form 433-A. The IRS will evaluate these expenses for reasonableness. For context, the HUD Fair Market Rent (FMR) for Jones County, SD, for FY2025 shows a 2-bedroom unit at $960.0 per month. While not an IRS 'standard,' this figure provides a benchmark for what is considered a reasonable housing cost in the area. When completing Form 433-A, taxpayers would list their actual rent or mortgage, utilities, and other housing-related costs. If these exceed what the IRS deems reasonable, based on IRM 5.15.1.10, taxpayers can request a deviation, providing documentation to support their higher necessary expenses to prevent or release a levy under IRC §6343.
To qualify for Currently Not Collectible (CNC) status in South Dakota, a taxpayer must demonstrate to the IRS that they lack the financial ability to pay their tax debt after accounting for necessary living expenses. This process begins by submitting Form 433-A, Collection Information Statement, which details income, assets, and monthly expenses. The IRS then compares the taxpayer's income to their allowable expenses, which are determined by National and Local Standards. For example, a single individual in Jones County, SD, would be allowed $812 for food, clothing, and other items, $75 for healthcare (if under 65), and $858 for one-car transportation. If, after subtracting these allowable expenses, there is no disposable income left to pay the tax debt, the IRS may place the account in CNC status under IRM 5.16.1. This status temporarily stops enforced collection actions like wage levies (IRC §6331) and bank levies (Form 668-A), but the tax debt and interest continue to accrue until the Collection Statute Expiration Date (CSED) under IRC §6502.
The amount the IRS can levy from your paycheck in Jones County, South Dakota, is determined by federal law, specifically IRC §6331 and IRS Publication 1494. This publication outlines the monthly levy exemption amounts based on filing status and dependents. For 2025, a single taxpayer with zero dependents has a monthly exemption of $1096.67. If that same single taxpayer has one dependent, the exemption increases to $1680.0 per month. For a married taxpayer filing jointly with one dependent, the exemption is $2286.67. The IRS serves a wage levy using Form 668-W, Notice of Levy on Wages, Salary, and Other Income, directly to your employer. Your employer is legally obligated to withhold the non-exempt portion of your wages and send it to the IRS. This levy remains in effect until the debt is paid, released by the IRS under IRC §6343, or the IRS collection statute of limitations (IRC §6502) expires, typically 10 years from the assessment date.
If your actual rent or mortgage payment in Jones County, South Dakota, exceeds the amount the IRS typically allows, you can request a deviation from the standard. Since Jones County, SD, does not have specific IRS Local Housing Standards (listed as $N/A), taxpayers must justify their actual, necessary housing expenses. For instance, the HUD Fair Market Rent for a 2-bedroom unit in Jones County is $960.0. If your housing costs are higher due to specific circumstances, such as a large family, medical needs, or limited housing availability, you must provide documentation and a compelling explanation to the IRS. Internal Revenue Manual (IRM) 5.15.1.10 allows for deviations from national or local standards when a taxpayer can prove their actual expenses are reasonable and necessary for their health and welfare or the production of income. This is a critical step in demonstrating economic hardship under IRC §6343(a)(1)(D) to prevent or release a levy, such as a 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 outlined in Internal Revenue Code (IRC) §6502. This 10-year period typically begins from the date the tax was assessed. It's crucial to understand that certain actions can extend or 'toll' this 10-year period. For example, filing for bankruptcy, requesting a Collection Due Process (CDP) hearing, or submitting an Offer in Compromise (Form 656) can temporarily pause the CSED. While being placed in Currently Not Collectible (CNC) status (IRM 5.16.1) due to demonstrated economic hardship temporarily stops active collection efforts like wage levies (Form 668-W) and bank levies (Form 668-A), it *does not* extend the CSED. The 10-year clock continues to tick while your account is in CNC, making it a strategic option for some taxpayers in Jones County, SD, to outlast the collection period without active enforcement, provided the debt is not paid.

Sources & Methodology