Kimball County, Nebraska: Navigating IRS Wage Levy & Hardship Status

Taxpayers in Kimball County, Nebraska, facing IRS enforced collection actions must understand the detailed financial standards the IRS uses to determine their ability to pay. The IRS evaluates a taxpayer's financial situation through Form 433-A, 'Collection Information Statement for Wage Earners and Self-Employed Individuals.' This form requires a comprehensive disclosure of income, expenses, assets, and liabilities. The IRS calculates a taxpayer's disposable income by comparing their total income against specific allowable expenses, which are categorized into National Standards (Food, Clothing, Other, Healthcare) and Local Standards (Housing, Utilities, Transportation). For a single individual in Kimball County, the National Standard for Food, Clothing, and Other is $812 per month, while a family of four is allowed $1983. These figures are derived from Bureau of Labor Statistics (BLS) Consumer Expenditure Survey data. Economic hardship, as defined under IRC §6343(a)(1)(D), is a crucial factor the IRS considers when evaluating levy releases or offers in compromise, ensuring collection does not leave taxpayers without basic living necessities. All these standards are published on IRS.gov and are based on data from the BLS and US Census Bureau.

For Kimball County, Nebraska, the IRS does not publish specific Local Standards for Housing & Utilities. This means taxpayers in Kimball County are permitted to claim their actual, reasonable housing and utility expenses, provided they can substantiate them. When IRS Local Standards are not available, taxpayers should look to alternative reliable data. The U.S. Department of Housing and Urban Development (HUD) provides Fair Market Rent (FMR) data, which can serve as a benchmark for reasonable housing costs. For FY2025, the HUD FMR for a 2-bedroom unit in Kimball County, NE, is $990.0 per month. If a taxpayer's actual housing expenses exceed what the IRS might typically allow in other areas, they can request a deviation from the standard allowances, as detailed in Internal Revenue Manual (IRM) 5.15.1.10. Demonstrating that your rent, such as the $990.0 for a 2-bedroom unit, is reasonable within Kimball County strengthens your argument for such a deviation. Unfortunately, specific regional Shelter CPI data for Kimball County is not available, which could otherwise support claims of rising housing costs.

Beyond housing, the IRS provides National Standards for essential living expenses. For food, clothing, and other necessities, a single individual in Kimball County, NE, is allowed $812 per month, while a household of four is permitted $1983. These figures are based on the Bureau of Labor Statistics Consumer Expenditure Survey. Healthcare costs are also factored in; the IRS allows $75 per person per month for individuals under 65 and $153 per person per month for those 65 and over, with these amounts derived from the Medical Expenditure Panel Survey. For transportation, Kimball County residents receive specific Local Standards. A taxpayer owning one car is allowed $588 for ownership costs and $270 for operating costs, totaling $858 per month. For two cars, the allowance increases to $1176 for ownership and $270 for operating, totaling $1446 per month. These transportation figures are based on Bureau of Labor Statistics data and American Automobile Association operating costs, reflecting regional rates.

For Kimball County, Nebraska taxpayers experiencing severe financial distress, the IRS offers 'Currently Not Collectible' (CNC) status. This status means the IRS temporarily suspends collection activities because you lack the ability to pay your tax debt without sacrificing basic living necessities. To qualify, you must submit Form 433-A, 'Collection Information Statement,' detailing your income and expenses. The IRS will compare your total monthly income against your total allowable monthly expenses using the National and Local Standards. For a single filer in Kimball County, NE, a common calculation might include a $990.0 allowance for housing (based on HUD FMR for a 2BR, assuming reasonable actual expense), $812 for food, clothing, and other, $75 for healthcare (under 65), and $858 for transportation (one car ownership and operating costs). This totals $2735.0 in allowable expenses. If your income does not exceed this total, you may qualify for CNC. IRM 5.16.1 outlines the procedures for CNC determinations, and qualifying for CNC can lead to the release of levies under IRC §6343. Importantly, while CNC status pauses collection, it does not stop the 10-year Collection Statute Expiration Date (CSED) under IRC §6502 from continuing to run, meaning the IRS's time to collect is not extended by this status.