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Juneau City and Borough, Alaska IRS Wage Levy & Hardship Help

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

Understanding IRS Collection Standards in Juneau City and Borough

When facing IRS enforced collection actions in Juneau City and Borough, Alaska, such as a wage levy (Form 668-W) or bank levy (Form 668-A), understanding your allowable living expenses is paramount. The IRS uses Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals, to determine your ability to pay. This calculation hinges on your disposable income, which is derived by subtracting necessary living expenses from your gross income. These necessary expenses are defined by the IRS through National and Local Standards, sourced from IRS.gov Collection Financial Standards, which in turn pull data from the Bureau of Labor Statistics (BLS) and the US Census Bureau. For instance, a single individual in Juneau City and Borough is allowed $812 monthly for food, clothing, and other necessities, while a family of four is allowed $1983. If your necessary expenses exceed your income, you may qualify for economic hardship, as outlined in Internal Revenue Code (IRC) §6343(a)(1)(D), potentially leading to a levy release or Currently Not Collectible (CNC) status.

Juneau City and Borough Housing & Utilities Allowance vs. HUD Fair Market Rent

For taxpayers in Juneau City and Borough, Alaska, the IRS Collection Financial Standards currently list 'N/A' for specific local housing and utilities allowances. This means the IRS does not have a pre-determined maximum amount for housing in this region. Instead, taxpayers must substantiate their actual, reasonable, and necessary housing expenses. For context, the US Department of Housing and Urban Development (HUD) provides Fair Market Rent (FMR) data for FY2025, showing a 1-bedroom unit at $1390.0 and a 2-bedroom unit at $1820.0 in Juneau City and Borough. If your actual housing costs exceed what the IRS might consider reasonable, or if the HUD FMR itself is higher than a typical IRS allowance in other areas, you can argue for a deviation from the standard under Internal Revenue Manual (IRM) 5.15.1.10. Such a deviation is crucial for accurately reflecting your true financial situation, especially given that specific regional shelter Consumer Price Index (CPI) data is not available for this region from the Bureau of Labor Statistics, making the HUD FMR a key benchmark for justified expenses.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS allows for other essential living expenses. For food, clothing, and miscellaneous items, the National Standards (based on BLS Consumer Expenditure Survey data) provide $812 per month for a single person, and up to $1983 for a family of four. Healthcare allowances, derived from the Medical Expenditure Panel Survey, are $75 per month for individuals under 65 and $153 per month for those 65 and over. For transportation in Juneau City and Borough, Alaska, the IRS Local Standards (based on BLS data and American Automobile Association operating costs) allow for significant expenses. For one owned vehicle, this includes $588 for ownership costs and $270 for operating costs, totaling $858 per month. For two owned vehicles, the total allowance is $1176 for ownership and $270 for operating, amounting to $1446 per month. These specific allowances are vital in calculating your true ability to pay and determining potential hardship.

Qualifying for Currently Not Collectible (CNC) Status in Alaska

For taxpayers in Juneau City and Borough, Alaska, who cannot afford to pay their tax debt, Currently Not Collectible (CNC) status offers crucial relief. To qualify, you must submit a detailed financial statement, typically Form 433-A, to the IRS. The IRS will then compare your total monthly income against your allowable necessary living expenses, as determined by their National and Local Standards. For example, a single filer in Juneau City and Borough might have expenses including a reasonable housing cost like the HUD FY2025 1-bedroom Fair Market Rent of $1390.0, plus $812 for food, clothing, and other items, $75 for healthcare (under 65), and $858 for one owned vehicle's transportation costs. This totals $3135.0 in monthly expenses. If your net monthly income is less than this total, you could qualify for CNC status. As per IRM 5.16.1, CNC status means the IRS agrees you cannot afford to pay, and collection efforts are suspended. It's important to note that while CNC status may lead to the release of a levy under IRC §6343, it does not extend the 10-year Collection Statute Expiration Date (CSED) established by IRC §6502.

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Frequently Asked Questions

For Juneau City and Borough, Alaska, the IRS Collection Financial Standards for housing and utilities are currently listed as 'N/A.' This means there isn't a fixed, predetermined monthly allowance like in other regions. Instead, taxpayers must document and justify their actual, reasonable, and necessary housing expenses on Form 433-A. The IRS will evaluate these. A useful benchmark for reasonableness is the HUD FY2025 Fair Market Rent data for Juneau City and Borough, which indicates $1390.0 for a 1-bedroom unit and $1820.0 for a 2-bedroom unit. If your actual housing costs exceed what the IRS considers reasonable, you may need to argue for a deviation under IRM 5.15.1.10, providing robust documentation to support your case.
To qualify for Currently Not Collectible (CNC) status in Alaska, you must demonstrate to the IRS that you cannot afford to pay your tax debt without experiencing economic hardship, as defined by IRC §6343(a)(1)(D). This process typically involves submitting Form 433-A, Collection Information Statement, detailing your income, assets, and monthly necessary living expenses. The IRS will compare your net monthly income against their National and Local Standards. For example, a single filer in Juneau City and Borough with a 1-bedroom rental might have allowable expenses including $1390.0 for housing (based on HUD FMR), $812 for food, clothing, and other, $75 for healthcare (under 65), and $858 for transportation. If your income falls below your total allowable expenses, the IRS may grant CNC status under IRM 5.16.1, temporarily suspending collection actions.
When the IRS issues a wage levy (Form 668-W) in Juneau City and Borough, Alaska, they cannot take your entire paycheck. A portion of your wages is exempt from levy, calculated based on your filing status and the number of dependents you claim. According to IRS Publication 1494 (2025), for a single individual with zero dependents, the monthly exempt amount is $1096.67. For a single individual with one dependent, it rises to $1680.0. A married individual filing jointly with one dependent has an exemption of $2286.67. The IRS levies only the amount of your disposable earnings that exceeds this statutory exemption. Alaska's state wage garnishment laws follow federal Consumer Credit Protection Act (CCPA) limits, which are generally 25% of disposable earnings or the amount above 30 times the federal minimum wage, but the IRS levy rules typically take precedence for federal tax debts.
For Juneau City and Borough, Alaska, the IRS Collection Financial Standards do not specify a fixed housing allowance ('N/A'). Therefore, the IRS will review your actual, reasonable, and necessary housing expenses. If your rent is higher than what the IRS might typically allow in other areas, or if it exceeds benchmarks like the HUD FY2025 Fair Market Rent for your household size (e.g., $1390.0 for a 1-bedroom, $1820.0 for a 2-bedroom, or $2450.0 for a 3-bedroom), you can request a deviation. Under IRM 5.15.1.10, you can demonstrate that your higher rent is a necessary expense due to local market conditions or specific family needs. Providing documentation such as lease agreements, utility bills, and evidence of market rates for comparable housing in Juneau City and Borough is crucial to support your deviation request and ensure your financial statement (Form 433-A) accurately reflects your ability to pay.
The IRS generally has a 10-year period to collect a tax debt, known as the Collection Statute Expiration Date (CSED). This 10-year clock typically starts from the date your tax liability was assessed. This crucial timeframe is established by Internal Revenue Code (IRC) §6502. While various events can toll (pause) or extend the CSED, such as filing for bankruptcy, submitting an Offer in Compromise (Form 656), or living outside the U.S., being placed in Currently Not Collectible (CNC) status does not extend the CSED. The collection clock continues to run even when your account is in CNC status. Understanding your CSED is vital for strategic tax resolution planning, as once this period expires, the IRS is legally barred from collecting the tax debt.

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