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Lamoille County, Vermont IRS Wage Levy & Hardship Relief

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

Understanding IRS Collection Standards in Lamoille County

For taxpayers in Lamoille County, Vermont facing IRS collection actions, understanding the IRS Collection Financial Standards is crucial. These standards dictate how the IRS assesses your ability to pay, ultimately determining if you qualify for an Installment Agreement, an Offer in Compromise (OIC), or Currently Not Collectible (CNC) status. Your financial situation is meticulously documented on Form 433-A, 'Collection Information Statement for Wage Earners and Self-Employed Individuals.' The IRS uses National Standards for essential expenses like food ($812 for a single person per month) and Local Standards for housing, utilities, and transportation. These standards, published on IRS.gov and derived from data by the Bureau of Labor Statistics (BLS) and the US Census Bureau, help the IRS determine your 'disposable income'—the amount left over after allowable living expenses. If your allowable expenses exceed your income, you may qualify for economic hardship relief under Internal Revenue Code (IRC) §6343(a)(1)(D), which can prevent or release a levy.

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

When evaluating your ability to pay, the IRS generally refers to its Local Standards for Housing and Utilities. However, for Lamoille County, VT, specific IRS local housing standards are currently not available ('$N/A' for all household sizes). This absence means taxpayers must proactively provide documentation to support their actual necessary housing expenses. For comparison, the Department of Housing and Urban Development (HUD) FY2025 Fair Market Rent (FMR) data for Lamoille County shows a 2-bedroom unit at $2020.0 per month. If your actual, necessary housing costs exceed the IRS's non-existent standard, or a hypothetical conservative figure, you can request a deviation from the standard, as outlined in Internal Revenue Manual (IRM) 5.15.1.10. Documenting that your actual rent, such as $2020.0 for a 2-bedroom, is reasonable for Lamoille County despite 'data not available' for the Regional Shelter CPI (YoY) from the Bureau of Labor Statistics, strengthens your argument for a higher allowable expense.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS allows for other essential living expenses. For Lamoille County, these include National Standards for Food, Clothing, and Other Items, based on the BLS Consumer Expenditure Survey. A single person is allowed $812 per month, while a family of four is allotted $1983. National Standards also cover Out-of-Pocket Healthcare, derived from the Medical Expenditure Panel Survey, allowing $75 per person monthly for those under 65, and $153 for those 65 and over. For transportation, Lamoille County residents can claim Local Standards. For one car, the ownership cost is $588 per month, and the operating cost (for the region) is $270 per month, totaling $858. For two cars, the total allowance is $1446 ($1176 ownership + $270 operating). These figures, based on BLS data and American Automobile Association (AAA) operating costs, are critical for calculating your total allowable expenses on Form 433-A.

Qualifying for Currently Not Collectible (CNC) Status in Vermont

Achieving Currently Not Collectible (CNC) status in Vermont means the IRS has determined you cannot afford to pay your tax debt without experiencing economic hardship. To qualify, you must file Form 433-A, detailing your income, assets, and all allowable expenses. The IRS then compares your total income against your total allowable expenses, using the National and Local Standards. For a single filer in Lamoille County, an example calculation might include: housing (using HUD FMR as a reasonable proxy) $2020.0 + food $812 + healthcare $75 + transportation $858 = $3765.0 in total allowable monthly expenses. If your verifiable income is less than this total, you could qualify for CNC status. As per IRM 5.16.1, CNC status can lead to the release of an existing levy under IRC §6343 and temporarily halts active collection efforts. Crucially, CNC status does not extend the Collection Statute Expiration Date (CSED), which is generally 10 years from the assessment date under IRC §6502, meaning the IRS's time to collect continues to run.

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Frequently Asked Questions

For Lamoille County, VT, the IRS Collection Financial Standards for Housing and Utilities are currently listed as 'N/A' for all household sizes. This means there isn't a pre-determined, fixed amount the IRS automatically allows. Instead, taxpayers must document their actual, necessary housing expenses. For context, the HUD FY2025 Fair Market Rent for a 2-bedroom unit in Lamoille County is $2020.0. If your actual housing costs are reasonable and necessary, even if they exceed a hypothetical standard, you can request a deviation. It is critical to provide thorough documentation on Form 433-A to justify your housing expenses, aligning with IRM 5.15.1.10 guidance on allowable deviations.
To qualify for Currently Not Collectible (CNC) status in Vermont, you must demonstrate to the IRS that paying your tax debt would cause economic hardship. This involves submitting a comprehensive financial disclosure on Form 433-A, 'Collection Information Statement for Wage Earners and Self-Employed Individuals.' The IRS will compare your total monthly income against your total allowable monthly expenses, which include National Standards for food ($812 for a single person) and healthcare ($75 for those under 65), and Local Standards for transportation ($858 for one car, including ownership and operating costs). If your expenses exceed your income, leaving no disposable income, the IRS may place your account in CNC status. This process is governed by IRM 5.16.1, and if approved, active collection efforts, including levies, will typically cease.
When the IRS issues a wage levy (Form 668-W) in Lamoille County, it cannot take your entire paycheck. Federal law, specifically IRS Publication 1494, outlines the exempt amount from levy based on your filing status and number of dependents. For 2025, a single taxpayer with zero dependents has $1096.67 per month exempt from levy. A single taxpayer with one dependent has $1680.0 exempt monthly, and a married filing jointly taxpayer with one dependent has $2286.67 exempt monthly. The IRS will only levy the portion of your net disposable earnings that exceeds these statutory exempt amounts. Vermont's wage garnishment laws follow federal CCPA limits, which generally align with IRS rules, ensuring a minimum amount of income is protected for your living expenses.
In Lamoille County, VT, the IRS's local housing standards are currently 'N/A,' meaning there is no pre-set limit. This situation actually provides an opportunity to justify your actual, necessary housing expenses. For example, the HUD FY2025 Fair Market Rent for a 2-bedroom unit in Lamoille County is $2020.0. If your rent is comparable to or below this figure, you can present it as a reasonable and necessary expense. Under IRM 5.15.1.10, taxpayers can request a deviation from the standard if their actual expenses are higher and substantiated. You must provide detailed documentation, such as lease agreements and utility bills, on Form 433-A to demonstrate that your rent is ordinary and necessary for your household size and local economic conditions, even without specific BLS Shelter CPI data for the region.
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. While actions like filing an Offer in Compromise, requesting a Collection Due Process hearing, or initiating bankruptcy can temporarily pause the CSED, being placed in Currently Not Collectible (CNC) status does NOT extend the CSED. This is a critical point for taxpayers in Lamoille County, VT, as it means the 10-year clock continues to run even while the IRS has halted active collection efforts due to economic hardship. Understanding your CSED is vital for long-term tax resolution planning.

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