Juneau County, Wisconsin IRS Wage Levy & Hardship Resolution

For taxpayers in Juneau County, Wisconsin, facing IRS collection actions, understanding the IRS Collection Financial Standards is crucial. When evaluating a taxpayer's ability to pay, the IRS uses Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals, to determine disposable income. This assessment relies on both National and Local Standards to establish reasonable living expenses. For instance, a single individual in Juneau County is allotted $449 monthly for food, which is part of the broader National Standards total of $812 for Food, Clothing & Other. While specific local housing allowances are not provided for Juneau County, the IRS considers actual necessary expenses. The goal is to determine if allowing a taxpayer to pay would create an economic hardship, as defined under Internal Revenue Code (IRC) §6343(a)(1)(D), which could lead to a levy release. These standards are meticulously derived from authoritative sources such as IRS.gov, the Bureau of Labor Statistics (BLS) Consumer Expenditure Survey, and US Census Bureau American Community Survey data.

It's important for Juneau County, WI, residents to note that the IRS does not publish specific local housing and utilities allowances for this area. Therefore, taxpayers must substantiate their actual necessary housing expenses. For context, the U.S. Department of Housing and Urban Development (HUD) provides Fair Market Rent (FMR) data for Juneau County, with a 2-bedroom unit estimated at $970.0 per month, and a 1-bedroom at $740.0. If a taxpayer's actual housing costs exceed what the IRS might deem reasonable, they can request a deviation from the standard, as outlined in Internal Revenue Manual (IRM) 5.15.1.10. This is especially relevant when a taxpayer’s necessary housing expense, such as the $970.0 FMR for a 2BR, demonstrably exceeds any implied or historical IRS allowance. Documenting these expenses thoroughly strengthens a deviation argument. Unfortunately, regional shelter Consumer Price Index (CPI) data from the Bureau of Labor Statistics is not available for this specific region to provide a year-over-year comparison.

Beyond housing, the IRS provides National Standards for essential living expenses. For Juneau County, WI, taxpayers, the monthly National Standards for Food, Clothing & Other are significant: $812 for a 1-person household, rising to $1983 for a 4-person household. These figures are based on the Bureau of Labor Statistics Consumer Expenditure Survey. Healthcare costs are also factored in, with Out-of-Pocket Healthcare National Standards set at $75 per person per month for those under 65, and $153 per person per month for those 65 and over, derived from the Medical Expenditure Panel Survey. Transportation is covered by Local Standards, which for Juneau County residents include an allowance of $588 for owning one car and an additional $270 for operating costs in the region, totaling $858 per month for one vehicle. These figures, based on Bureau of Labor Statistics data and American Automobile Association operating costs, are critical in calculating a taxpayer's true ability to pay.

Achieving Currently Not Collectible (CNC) status in Juneau County, Wisconsin, means the IRS has determined you cannot pay your tax debt due to financial hardship. To qualify, taxpayers must submit a comprehensive Form 433-A, Collection Information Statement, detailing all income, assets, and allowable expenses. The IRS then compares your total income to your total allowable expenses, which include the National and Local Standards. For example, a single filer in Juneau County might have allowable monthly expenses including $740.0 for housing (using HUD 1BR FMR as a reasonable actual expense), $812 for food, clothing, and other (National Standard), $75 for healthcare (under 65), and $858 for transportation (1 car ownership + operating), totaling $2485.0. If your income does not exceed this total, you may qualify for CNC. Internal Revenue Manual (IRM) 5.16.1 outlines the procedures for placing an account in CNC status, and IRC §6343 allows for the release of a levy if it creates economic hardship. Importantly, while CNC status temporarily stops active collection, it does not extend the Collection Statute Expiration Date (CSED), which is generally 10 years from the assessment date under IRC §6502.