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IRS Wage Levy & Hardship Solutions for Kendall County, Texas Taxpayers

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

Understanding IRS Collection Standards in Kendall County, TX

When the IRS initiates enforced collection actions, such as wage or bank levies, your ability to pay is assessed through Form 433-A, 'Collection Information Statement for Wage Earners and Self-Employed Individuals.' The IRS uses National and Local Collection Financial Standards to determine your allowable monthly living expenses, calculating your disposable income. For a single individual in Kendall County, TX, the National Standard for Food, Clothing, and Other Necessities is $812 per month, derived from Bureau of Labor Statistics Consumer Expenditure Survey data. While specific IRS local housing standards are not provided for Kendall County, TX, your actual necessary housing expenses will be evaluated. If your allowable expenses exceed your income, the IRS may determine that an economic hardship exists, as outlined in Internal Revenue Code (IRC) §6343(a)(1)(D), potentially leading to levy release or Currently Not Collectible (CNC) status. This critical data, sourced from IRS.gov, BLS, and US Census Bureau, empowers taxpayers to negotiate effectively.

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

For taxpayers in Kendall County, TX HUD Metro FMR Area, the IRS Collection Financial Standards do not provide a specific Local Standard for Housing and Utilities. However, this absence does not mean you cannot claim your actual necessary housing expenses. The U.S. Department of Housing and Urban Development (HUD) Fair Market Rent (FMR) data offers a strong benchmark for reasonable housing costs in your area, such as $1220.0 for a Studio, $1280.0 for a 1-bedroom, $1590.0 for a 2-bedroom, $2070.0 for a 3-bedroom, and $2230.0 for a 4-bedroom property. If your actual, necessary housing expenses exceed the general IRS standards (when available) or even if there isn't a specific standard, you can argue for a deviation based on your unique circumstances, as permitted by Internal Revenue Manual (IRM) 5.15.1.10. Emphasizing that your actual rent, for example, a 2-bedroom at $1590.0, aligns with local FMR strengthens your argument for a higher allowable expense. Unfortunately, regional Shelter CPI data for Kendall County, TX is not available from the Bureau of Labor Statistics for a direct year-over-year comparison.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS allows for other essential living expenses. The National Standards for Food, Clothing, and Other Necessities, based on the Bureau of Labor Statistics Consumer Expenditure Survey, provide specific monthly allowances: $812 for a 1-person household, $1478 for 2-persons, $1697 for 3-persons, and $1983 for 4-persons, with an additional $357 for each subsequent person. Healthcare expenses are also standardized, derived from the Medical Expenditure Panel Survey, allowing $75 per person under 65 and $153 per person aged 65 and over. Transportation allowances in Kendall County, TX are based on IRS Local Standards, incorporating Bureau of Labor Statistics data and American Automobile Association operating costs. For a single vehicle, the ownership cost is $588 per month, with an additional $270 for operating expenses in this region, totaling $858 per month. For two vehicles, the total allowance is $1176 for ownership plus $270 for operating, reaching $1446 monthly. These specific allowances are crucial for demonstrating your financial inability to pay your tax debt.

Qualifying for Currently Not Collectible (CNC) Status in Texas

Achieving Currently Not Collectible (CNC) status in Texas means the IRS has determined you cannot afford to pay your tax debt without experiencing financial hardship. To qualify, you must file Form 433-A, 'Collection Information Statement,' detailing all your income, assets, and expenses. The IRS will compare your total allowable monthly expenses against your income. For a single filer in Kendall County, TX, this might involve combining a reasonable housing expense like the 1-bedroom HUD Fair Market Rent of $1280.0, with the $812 National Standard for Food, Clothing, and Other, $75 for healthcare (under 65), and $858 for transportation (one car ownership and operating costs), totaling $3025.0 in basic allowable expenses. If your income does not exceed this amount, you may qualify for CNC. Internal Revenue Manual (IRM) 5.16.1 outlines the procedures for placing an account into CNC status, which typically results in the release of any existing IRS levies under IRC §6343. Importantly, while in CNC status, the IRS generally ceases collection efforts, but it does not stop the Collection Statute Expiration Date (CSED) from running, which is the 10-year limit the IRS has to collect tax debt under IRC §6502.

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Frequently Asked Questions

For Kendall County, TX HUD Metro FMR Area, the IRS Collection Financial Standards explicitly state 'N/A' for specific housing and utilities allowances across all household sizes. This means the IRS does not publish a fixed monthly amount for this region. However, this does not prevent taxpayers from claiming their actual, necessary housing expenses. The IRS will review your documented rent or mortgage, utilities, and other housing-related costs. Taxpayers can reference the HUD Fair Market Rent (FMR) data, which indicates a 1-bedroom FMR of $1280.0 and a 2-bedroom FMR of $1590.0 for Kendall County, TX, as a strong indicator of reasonable local housing costs, strengthening an argument for these amounts as allowable expenses during a financial review.
To qualify for Currently Not Collectible (CNC) status in Texas, you must demonstrate to the IRS that you lack the financial ability to pay your tax debt without experiencing significant hardship. This process begins by submitting Form 433-A, 'Collection Information Statement for Wage Earners and Self-Employed Individuals,' detailing all your income, assets, and monthly necessary living expenses. The IRS will compare your total income against the combined National and Local Collection Financial Standards applicable to your household. For instance, a single individual in Kendall County, TX could claim $812 for food/clothing/other, $75 for healthcare (under 65), and $858 for transportation, plus their actual reasonable housing costs (e.g., a 1-bedroom HUD FMR of $1280.0). If your total allowable expenses exceed your income, the IRS may place your account in CNC status, as per Internal Revenue Manual (IRM) 5.16.1, pausing collection efforts.
The amount the IRS can levy from your paycheck in Kendall County, TX, is determined by federal law, specifically outlined in IRS Publication 1494. This publication provides a table for figuring the amount exempt from levy, ensuring you retain enough income for basic living expenses. For 2025, a single individual with zero dependents is exempt from levy on $1096.67 of their monthly wages. If that single individual claims one dependent, their monthly exemption increases to $1680.0. For married individuals filing jointly with zero dependents, the exemption is also $1096.67, while with one dependent, it rises to $2286.67. The IRS serves a Form 668-W, 'Notice of Levy on Wages, Salary, and Other Income,' to your employer, who is then legally obligated to remit the non-exempt portion of your earnings directly to the IRS. Texas follows these federal limits.
If your actual, necessary rent in Kendall County, TX exceeds the IRS Collection Financial Standards, especially since specific local housing standards are not published ('N/A' for this area), you have a strong basis to argue for a deviation. The IRS recognizes that local economic conditions can vary. You should document your actual housing expenses thoroughly on Form 433-A. Referencing the HUD Fair Market Rent (FMR) data for Kendall County, TX, which lists $1280.0 for a 1-bedroom and $1590.0 for a 2-bedroom, can support your claim that your rent is reasonable and necessary for your area. Internal Revenue Manual (IRM) 5.15.1.10 provides guidance on allowing deviations from national and local standards when a taxpayer can substantiate that their actual expenses are necessary and reasonable, demonstrating an inability to pay their tax liability.
The IRS generally has a 10-year period to collect a tax debt, known as the Collection Statute Expiration Date (CSED), as mandated by Internal Revenue Code (IRC) §6502. This 10-year clock typically starts from the date the tax was assessed. It is crucial to understand that certain actions can pause or 'toll' this statute, effectively extending the collection period. For example, filing for bankruptcy, submitting an Offer in Compromise (Form 656), or requesting a Collection Due Process (CDP) hearing can temporarily suspend the CSED. However, being placed in Currently Not Collectible (CNC) status, as per IRM 5.16.1, does not extend the CSED; the 10-year clock continues to run while the IRS refrains from active collection. Strategic use of CNC can allow the CSED to expire, potentially eliminating the tax debt without payment.

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