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Kent County, Maryland IRS Wage Levy & Hardship: Your Path to Financial Relief

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

Understanding IRS Collection Standards in Kent County

When facing IRS enforced collection actions, such as a wage levy (Form 668-W) or a bank levy (Form 668-A), taxpayers in Kent County, Maryland, must understand how the IRS determines their ability to pay. The IRS uses a detailed financial analysis, often initiated by filing Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals. This process relies on National and Local Collection Financial Standards to calculate a taxpayer's disposable income. For instance, a single individual in Kent County is allocated $812 monthly for food, clothing, and other necessities, as per the IRS National Standards derived from Bureau of Labor Statistics Consumer Expenditure Survey data. While specific local housing standards are not published for Kent County, the IRS considers all necessary living expenses to prevent an 'economic hardship,' as defined by Internal Revenue Code (IRC) §6343(a)(1)(D). These standards are meticulously compiled from various sources including IRS.gov, the Bureau of Labor Statistics (BLS), and the US Census Bureau, ensuring a standardized approach to evaluating financial hardship.

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

For residents of Kent County, Maryland, the IRS Collection Financial Standards do not provide a specific local housing and utilities allowance. This 'N/A' designation means taxpayers must present their actual, reasonable housing expenses for consideration. The U.S. Department of Housing and Urban Development (HUD) Fair Market Rent (FMR) data offers a crucial benchmark, indicating that a 2-bedroom residence in Kent County has an FMR of $1150.0 per month for FY2025. If a taxpayer's actual rent or mortgage payment, including utilities, exceeds the generally accepted local housing costs (or in this case, a reasonable amount based on HUD FMR), they can request a deviation from standard allowances. Internal Revenue Manual (IRM) 5.15.1.10 explicitly outlines the process for granting such deviations, requiring taxpayers to provide documentation justifying their higher expenses. Demonstrating that your legitimate housing costs, such as the $1150.0 FMR for a 2-bedroom unit, are necessary and exceed typical allowances, significantly strengthens an argument for a deviation. Regional shelter CPI data for this specific region is currently not available from the Bureau of Labor Statistics.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS provides allowances for other essential living expenses. For food, clothing, and miscellaneous items, the National Standards allocate $812 monthly for a single individual, increasing to $1478 for a two-person household, $1697 for three, and $1983 for a four-person family, with an additional $357 for each extra person. These figures are based on the Bureau of Labor Statistics Consumer Expenditure Survey. Healthcare expenses are also standardized: individuals under 65 are allowed $75 per month, while those 65 and over are allocated $153 per month, derived from the Medical Expenditure Panel Survey. Transportation allowances are specific to the region. In Kent County, Maryland, the IRS Local Standards for Transportation permit $588 per month for one owned car and an additional $270 per month for operating costs, totaling $858 for one vehicle. For two owned vehicles, the allowance is $1176 for ownership plus $270 for operating, reaching $1446. These transportation figures are based on Bureau of Labor Statistics data and American Automobile Association operating costs, ensuring taxpayers can maintain employment and access necessities.

Qualifying for Currently Not Collectible (CNC) Status in Maryland

Achieving Currently Not Collectible (CNC) status in Maryland offers a critical reprieve from IRS enforced collection actions. To qualify, a taxpayer in Kent County must demonstrate, typically by submitting Form 433-A, that their allowable monthly expenses meet or exceed their monthly income, leaving no disposable income for tax payments. For a single filer, this calculation would include their housing (e.g., a reasonable $1010.0 for a 1-bedroom based on HUD FMR), plus $812 for food, clothing, and other necessities, $75 for healthcare (if under 65), and $858 for one vehicle's transportation costs. This totals $1010.0 + $812 + $75 + $858 = $2755.0 in essential monthly expenses. If their income is equal to or less than this amount, they may qualify for CNC. IRM 5.16.1 outlines the procedures for placing an account in CNC status, which results in the immediate release of wage levies (Form 668-W) and bank levies (Form 668-A) under IRC §6343. Importantly, while in CNC, the IRS generally ceases collection attempts, but interest and penalties continue to accrue. The Collection Statute Expiration Date (CSED), governed by IRC §6502, typically a 10-year window from the date of assessment, continues to run during CNC status, meaning time can expire on the IRS's ability to collect the debt.

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Frequently Asked Questions

For Kent County, Maryland, the IRS Collection Financial Standards currently list 'N/A' for the local housing and utilities allowance. This means the IRS does not provide a pre-set figure. Instead, taxpayers must submit their actual, reasonable housing expenses for consideration during the collection information statement process (Form 433-A). As a practical benchmark, the HUD Fair Market Rent (FMR) for FY2025 indicates a 1-bedroom unit in Kent County is $1010.0 per month, and a 2-bedroom unit is $1150.0. If your legitimate housing costs exceed what the IRS might otherwise consider, you can request a deviation under IRM 5.15.1.10, providing documentation to justify these necessary expenses.
To qualify for Currently Not Collectible (CNC) status in Maryland, you must demonstrate to the IRS that you lack the financial ability to pay your tax debt, after accounting for necessary living expenses. This is primarily done by submitting a detailed financial statement, typically Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals. The IRS will compare your income against their National and Local Collection Financial Standards. For example, a single individual's allowable expenses would include $812 for food, clothing, and other items, $75 for healthcare (if under 65), and $858 for one car's transportation costs, plus a reasonable housing amount (e.g., using the HUD FMR of $1010.0 for a 1-bedroom in Kent County). If your total allowable expenses equal or exceed your income, the IRS may place your account in CNC status under IRM 5.16.1, leading to the release of levies as per IRC §6343.
When the IRS issues a wage levy (Form 668-W) in Kent County, Maryland, they cannot take your entire paycheck. Federal law, specifically IRS Publication 1494, Table for Figuring Amount Exempt from Levy, specifies a portion of your wages that is exempt from levy. For 2025, a single individual with zero dependents has an exempt amount of $1096.67 per month. If that single individual claims one dependent, their monthly exemption increases to $1680.0. For married filing jointly with zero dependents, the exempt amount is also $1096.67, but with one dependent, it rises to $2286.67. The IRS can only levy wages that exceed these statutory exempt amounts. Maryland generally follows federal limits, which also include the Consumer Credit Protection Act (CCPA) limits of 25% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum wage, whichever is less.
In Kent County, Maryland, the IRS does not publish a specific local housing standard, noting 'N/A' in their Collection Financial Standards. This means that if your actual rent or mortgage payment, combined with utilities, is higher than what might be generally expected, you have a strong basis to argue for its full allowance. For example, the HUD Fair Market Rent for a 1-bedroom unit in Kent County is $1010.0, and for a 2-bedroom, it is $1150.0 for FY2025. If your actual housing costs exceed these figures, you can request a deviation from the standard allowances. IRM 5.15.1.10 details the process for granting these deviations, requiring you to provide documentation such as lease agreements, utility bills, and mortgage statements to justify your necessary and reasonable expenses. This allows the IRS to consider your true financial situation.
The IRS typically has 10 years to collect a tax debt, a period known as the Collection Statute Expiration Date (CSED). This 10-year period generally begins from the date the tax was assessed, as outlined in Internal Revenue Code (IRC) §6502. While the IRS can pursue various collection actions, including wage levies (Form 668-W) and bank levies (Form 668-A), within this timeframe, certain events can pause or extend the CSED, such as filing for bankruptcy or an Offer in Compromise. However, importantly, being placed in Currently Not Collectible (CNC) status does NOT extend the CSED. If you qualify for CNC status, collection efforts will cease, but the 10-year clock continues to tick, meaning the IRS's legal ability to collect the debt may expire while you are in CNC, offering a potential long-term resolution.

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