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Judith Basin County, Montana: Navigating IRS Wage Levy and Hardship Relief

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

Understanding IRS Collection Standards in Judith Basin County

For taxpayers in Judith Basin County, Montana, facing IRS collection actions, understanding the IRS Collection Financial Standards is critical for determining your ability to pay. The IRS uses these standards, along with actual necessary living expenses, to calculate a taxpayer's disposable income on Form 433-A, Collection Information Statement. These figures dictate how much the IRS believes you can afford to pay toward your tax debt monthly. For instance, a single individual in Judith Basin County is allowed $812 for food, clothing, and other necessities, based on IRS National Standards derived from Bureau of Labor Statistics (BLS) Consumer Expenditure Survey data. While specific IRS Local Housing and Utilities Standards are not provided for Judith Basin County, actual housing costs, such as the HUD Fair Market Rent of $1300.0 for a 2-bedroom unit, are crucial to consider. If your allowable expenses exceed your income, you may qualify for economic hardship relief under IRC §6343(a)(1)(D), potentially leading to a levy release or Currently Not Collectible status. This data, sourced from IRS.gov, BLS, and US Census Bureau, provides the foundation for such determinations.

Judith Basin County Housing & Utilities Allowance vs. HUD Fair Market Rent

When assessing a taxpayer's ability to pay in Judith Basin County, Montana, the IRS evaluates housing and utility expenses. It is important to note that the IRS does not publish specific Local Housing & Utilities Standards for Judith Basin County, MT, listing them as $N/A for all household sizes. In such cases, the IRS will consider a taxpayer's actual, reasonable expenses. A critical benchmark for reasonable housing costs is the U.S. Department of Housing and Urban Development (HUD) Fair Market Rent (FMR) data, which indicates a 2-bedroom unit in this area has an FMR of $1300.0 per month for FY2025. If a taxpayer's actual housing expenses exceed the general expectation, or if no specific IRS standard exists, they may argue for a deviation from the standard under IRM 5.15.1.10, 'Deviation from National and Local Standards.' This is especially relevant if your actual rent or mortgage payment is in line with or exceeds the HUD FMR. Unfortunately, regional shelter CPI data for Judith Basin County is not available, which would typically provide additional support for rising housing costs.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS Collection Financial Standards also provide specific allowances for essential living expenses in Judith Basin County, Montana. For food, clothing, and other necessities, the IRS National Standards dictate a monthly allowance of $812 for a single individual, increasing to $1983 for a family of four. These figures are derived from the Bureau of Labor Statistics Consumer Expenditure Survey. Healthcare costs are also factored in, with a monthly out-of-pocket allowance of $75 per person under 65 and $153 per person for those 65 and over, based on the Medical Expenditure Panel Survey. For transportation, the IRS Local Standards for Montana provide a robust allowance. For a household with one 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 allowance increases to $1176 for ownership, plus the operating cost. These transportation standards are based on BLS data and American Automobile Association operating costs, acknowledging the necessity of vehicle ownership in areas like Judith Basin County.

Qualifying for Currently Not Collectible (CNC) Status in Montana

Achieving Currently Not Collectible (CNC) status in Montana signifies that the IRS has determined you lack the financial ability to pay your tax debt due to economic hardship. To qualify, you must file Form 433-A, Collection Information Statement, detailing your income, assets, and all allowable expenses. The IRS will compare your total income against your total allowable expenses, which includes National Standards for food and other items, Local Standards for transportation, and reasonable actual expenses for housing and healthcare. For example, a single filer in Judith Basin County might claim $1300.0 for housing (based on 2BR HUD FMR as a reasonable actual expense, since no IRS standard is provided), $812 for food, clothing, and other items, $75 for healthcare (if under 65), and $858 for one-car transportation, totaling $3245.0 in essential monthly expenses. If your income does not exceed these expenses, you may be granted CNC status under IRM 5.16.1. This status typically leads to the release of any existing levies, as outlined in IRC §6343. Importantly, CNC status does not eliminate the tax debt, nor does it extend the Collection Statute Expiration Date (CSED), which is generally 10 years from the assessment date under IRC §6502.

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Frequently Asked Questions

For Judith Basin County, Montana, the IRS does not provide a specific Local Housing & Utilities Standard for any household size, listing them as $N/A. Instead, the IRS will consider a taxpayer's actual, reasonable housing expenses when determining their ability to pay. For context, the U.S. Department of Housing and Urban Development (HUD) Fair Market Rent (FMR) for a 2-bedroom unit in Judith Basin County is $1300.0 per month for FY2025. If your actual housing costs are in line with or exceed this figure, and you can substantiate them, the IRS will typically allow these expenses on Form 433-A. If actual expenses are unusually high, you may need to argue for a deviation from implied standards under IRM 5.15.1.10.
To qualify for Currently Not Collectible (CNC) status in Montana, you must demonstrate to the IRS that your allowable monthly living expenses equal or exceed your monthly income, leaving no disposable income to pay your tax debt. This determination is made by completing and submitting Form 433-A, Collection Information Statement, which details your financial situation. The IRS will evaluate your income against National Standards (e.g., $812 for a single person's food, clothing, and other expenses), Local Standards (e.g., $858 for one-car transportation in Judith Basin County), and reasonable actual expenses for housing (such as the $1300.0 HUD FMR for a 2BR unit) and out-of-pocket healthcare ($75 per person under 65). If this assessment shows you have no ability to pay, the IRS will place your account into CNC status under IRM 5.16.1, temporarily halting collection efforts.
The amount the IRS can levy from your paycheck in Judith Basin County, MT, is determined by IRS Publication 1494 and your filing status and number of dependents. For 2025, a single taxpayer with zero dependents has $1096.67 of their monthly wages exempt from levy. If that single taxpayer has one dependent, the exempt amount increases to $1680.0 per month. For a married individual filing jointly with zero dependents, the same $1096.67 is exempt, but with one dependent, it rises to $2286.67. The IRS serves a wage levy using Form 668-W, Notice of Levy on Wages, Salary, and Other Income, and the employer is legally obligated to withhold the non-exempt portion. These federal limits supersede state wage garnishment laws if the federal amount is higher, ensuring a minimum amount of income remains for essential living expenses.
If your rent exceeds a specified IRS standard, or in the case of Judith Basin County, MT, where no specific housing standard is published (listed as $N/A), you must document your actual, reasonable housing expenses on Form 433-A. For instance, the HUD Fair Market Rent for a 2-bedroom unit in Judith Basin County is $1300.0 per month. If your actual rent is at or above this amount, it is considered a strong indicator of a reasonable expense. The IRS allows for deviations from standard allowances under IRM 5.15.1.10 when a taxpayer can demonstrate that their necessary expenses are higher than the published standards. Providing detailed documentation, such as lease agreements and utility bills, is essential to justify your actual housing costs and argue for their full allowance in your ability-to-pay calculation.
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 clock typically begins from the date the tax was assessed. It's crucial to understand that certain actions can pause or extend this period. For example, if your account is placed into Currently Not Collectible (CNC) status, the CSED clock is paused during that time, meaning the IRS gains additional collection time equivalent to the duration your account was in CNC. Filing an Offer in Compromise (Form 656) or requesting a Collection Due Process hearing also pauses the CSED. While CNC status provides temporary relief from enforced collection, it does not eliminate the debt and can effectively extend the overall time the IRS has to collect it, making strategic planning essential.

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