IRS Levy Hardship Analyzer ← Free Analysis Tool

IRS Wage Levy, Bank Levy, and Hardship Relief in La Plata County, Colorado

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

Understanding IRS Collection Standards in La Plata County

When the IRS assesses your ability to pay a tax debt, they utilize specific Collection Financial Standards to determine your disposable income. In La Plata County, Colorado, this process begins with filing IRS Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals. These standards, derived from Bureau of Labor Statistics (BLS) Consumer Expenditure Surveys and US Census Bureau data, allow for necessary living expenses before any funds are considered available for tax payments. For instance, a single individual is typically allowed $812 monthly for food, clothing, and other necessities. While specific local housing allowances for La Plata County are not provided by the IRS, understanding these national and local standards is crucial. If your income after these allowances leaves you unable to pay basic living expenses, the IRS may determine that collection would create an 'economic hardship,' as defined under Internal Revenue Code (IRC) §6343(a)(1)(D). This critical data is publicly available on IRS.gov and forms the backbone of any resolution strategy.

La Plata County Housing & Utilities Allowance vs. HUD Fair Market Rent

For taxpayers in La Plata County, Colorado, the IRS Collection Financial Standards currently do not specify a local housing and utilities allowance (listed as $N/A). This absence means the IRS typically uses actual housing expenses, provided they are reasonable and necessary, or refers to comparable data. For context, the US Department of Housing & Urban Development (HUD) reports the FY2025 Fair Market Rent (FMR) for La Plata County at $1250.0 for a studio apartment, $1280.0 for a 1-bedroom, and $1680.0 for a 2-bedroom residence. If your actual, reasonable housing costs exceed the IRS's unstated or a general local standard, you may argue for a 'deviation' from the standard. Internal Revenue Manual (IRM) 5.15.1.10 outlines the procedures for allowing such deviations when a taxpayer can substantiate higher necessary expenses. This is a critical point for La Plata County residents, especially if their rent approaches or exceeds the HUD FMR figures, strengthening the argument that standard allowances are insufficient. Regional Shelter CPI data is not available for this specific region to provide year-over-year comparisons.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS provides National Standards for essential living costs. For food, clothing, and miscellaneous items, a single individual in La Plata County is allowed $812 per month. This allowance increases with household size, reaching $1478 for two people, $1697 for three, and $1983 for a family of four, with an additional $357 for each extra person. These figures are derived from the Bureau of Labor Statistics Consumer Expenditure Survey. Healthcare is another critical allowance; the IRS permits $75 per month for individuals under 65 and $153 per month for those 65 and over, per person, based on the Medical Expenditure Panel Survey. For transportation, La Plata County residents are allotted specific amounts. For one owned vehicle, the allowance is $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, based on BLS data and American Automobile Association operating costs.

Qualifying for Currently Not Collectible (CNC) Status in Colorado

Achieving Currently Not Collectible (CNC) status offers temporary relief from IRS enforced collection actions in La Plata County, Colorado. To qualify, you must demonstrate, usually through IRS Form 433-A, that your allowable monthly expenses meet or exceed your monthly income, leaving no funds for tax payments. For a single taxpayer in La Plata County, a typical calculation might include an actual housing expense (e.g., a 1-bedroom at HUD FMR of $1280.0), plus $812 for food and other necessities, $75 for healthcare (under 65), and $858 for one-car transportation. This totals $3025.0 in allowable expenses. If your net monthly income is less than or equal to 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 means the IRS will generally cease active collection efforts like wage or bank levies. Furthermore, qualifying for CNC can lead to the release of an existing levy under IRC §6343. It's important to note that CNC status does not forgive the debt, and interest and penalties continue to accrue. However, it allows the Collection Statute Expiration Date (CSED), governed by IRC §6502, to continue running, typically a 10-year period from the date of assessment, without extending it.

🏛️ Free IRS Levy Hardship Analysis

Are you facing an IRS wage levy or bank levy in La Plata County, CO? Don't let the IRS seize your assets without understanding your rights. Use our free IRS Levy Hardship Analyzer tool today by entering your La Plata County, CO ZIP code to determine your eligibility for collection relief.

Analyze Your Situation

Frequently Asked Questions

For La Plata County, Colorado, the IRS Collection Financial Standards for Housing and Utilities are currently listed as 'N/A,' meaning there isn't a pre-set fixed amount. Instead, the IRS will evaluate your actual, reasonable, and necessary housing expenses. For reference, the HUD FY2025 Fair Market Rent (FMR) for a 1-bedroom apartment in La Plata County is $1280.0, and for a 2-bedroom it is $1680.0. If your actual housing costs are higher than what an IRS Revenue Officer deems reasonable, you may need to provide additional documentation to justify these expenses. This is crucial for demonstrating an inability to pay, especially when pursuing a Currently Not Collectible (CNC) determination or an Offer in Compromise, as outlined in IRM 5.15.1.10.
To qualify for Currently Not Collectible (CNC) status in Colorado, you must demonstrate to the IRS that you lack the financial ability to pay your tax debt after accounting for necessary living expenses. This process typically involves submitting IRS Form 433-A, Collection Information Statement, detailing your income, assets, and expenses. The IRS then compares your reported income against the National and Local Collection Financial Standards. For example, a single individual in La Plata County is allowed $812 for food and other items, $75 for healthcare (under 65), and $858 for transportation (one car). If your total allowable expenses, including a reasonable housing amount (e.g., HUD FMR of $1280.0 for a 1-bedroom), exceed your net monthly income, the IRS may place your account into CNC status, temporarily halting collection efforts. IRM 5.16.1 details the procedures for this relief.
When the IRS issues a wage levy (Form 668-W) in La Plata County, Colorado, they are legally permitted to take a significant portion of your disposable earnings. However, a specific amount is exempt from the levy to ensure you can meet basic living expenses. According to IRS Publication 1494 (2025), for a single individual with zero dependents, $1096.67 per month is exempt. For a single individual with one dependent, this exemption increases to $1680.0 per month. For a married individual filing jointly with zero dependents, $1096.67 is also exempt, while a married individual with one dependent has $2286.67 exempt. The IRS calculates the non-exempt portion, and your employer is legally required to withhold and remit this amount to the IRS. Understanding these exact exemption figures is vital for taxpayers facing a wage levy, as it dictates the minimum amount you are guaranteed to retain.
If your rent in La Plata County, Colorado, exceeds the IRS Collection Financial Standard for housing (which is currently listed as N/A for this region), you are not necessarily out of luck. The IRS allows for 'deviations' from standard allowances when a taxpayer can substantiate higher, necessary expenses. For instance, if you pay $1680.0 for a 2-bedroom residence, which aligns with the HUD FY2025 Fair Market Rent, but an IRS agent attempts to apply a lower, general standard, you can argue for the allowance of your actual expense. You would need to provide documentation such as your lease agreement and rent payment history. Internal Revenue Manual (IRM) 5.15.1.10 provides guidance on how Revenue Officers should consider these deviation requests. Successfully advocating for your actual, reasonable housing costs is critical in demonstrating an inability to pay and securing collection relief, such as an Offer in Compromise or Currently Not Collectible status.
The IRS generally has 10 years to collect a tax debt, a period known as the Collection Statute Expiration Date (CSED), as mandated by Internal Revenue Code (IRC) §6502. This 10-year period typically begins from the date the tax was assessed. It's crucial for taxpayers in La Plata County, Colorado, to understand that certain actions can 'toll' or extend this statute of limitations. For example, periods during which an Offer in Compromise (Form 656) is pending, or during which a taxpayer is in Currently Not Collectible (CNC) status, will extend the CSED. However, simply being placed into CNC status does not inherently extend the CSED; rather, the time the account is in CNC status is added to the remaining collection period. Understanding and tracking your CSED is a cornerstone of effective tax resolution, as once it expires, the IRS can no longer legally pursue collection of that specific tax liability.

Sources & Methodology