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Las Animas County, Colorado: Navigating IRS Wage Levy & Hardship

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

Understanding IRS Collection Standards in Las Animas County

For taxpayers in Las Animas County, Colorado facing IRS enforced collection, understanding the IRS Collection Financial Standards is crucial. When evaluating a taxpayer's ability to pay, the IRS uses Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals, to calculate disposable income. This calculation relies on National and Local Standards, which are derived from extensive data from IRS.gov, the Bureau of Labor Statistics (BLS), and the US Census Bureau. For example, the National Standard for Food for a single individual is $449 per month, contributing to a total National Standard of $812. While specific Local Housing & Utilities Standards are listed as N/A for Las Animas County, actual, reasonable expenses will be considered. The IRS uses these figures to determine if a taxpayer meets the definition of economic hardship under IRC §6343(a)(1)(D), which can lead to relief such as a Currently Not Collectible (CNC) status or an Offer in Compromise.

Las Animas County Housing & Utilities Allowance vs. HUD Fair Market Rent

In Las Animas County, Colorado, the IRS Collection Financial Standards list the Local Housing & Utilities Allowance as 'N/A' for all household sizes. This means that the IRS will generally consider a taxpayer's actual, reasonable housing and utility expenses when evaluating their ability to pay. However, the Department of Housing & Urban Development (HUD) provides Fair Market Rent (FMR) data, which can serve as a strong benchmark for reasonable housing costs. For instance, the HUD FY2025 FMR for a 2-bedroom unit in Las Animas County is $1010.0 per month. If a taxpayer's actual housing expenses exceed what the IRS might deem reasonable, they can seek a deviation from the standard by demonstrating their necessity, as outlined in Internal Revenue Manual (IRM) 5.15.1.10. While regional shelter CPI data from the Bureau of Labor Statistics is not available for this specific region, the HUD FMR provides valuable context for housing costs.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS Collection Financial Standards provide specific allowances for other essential living expenses. The National Standards for Food, Clothing & Other are significant: a single person is allowed $812 per month, while a family of four is allowed $1983 per month. These figures are based on the Bureau of Labor Statistics Consumer Expenditure Survey. For healthcare, the National Out-of-Pocket Healthcare Standard allows $75 per person per month for individuals under 65, and $153 per person per month for those 65 and over, derived from the Medical Expenditure Panel Survey. Transportation costs in Las Animas County are also accounted for with Local Standards: a taxpayer owning one car is allowed $588 for ownership costs and $270 for operating costs, totaling $858 per month. These transportation figures are based on Bureau of Labor Statistics data and American Automobile Association operating costs, ensuring a comprehensive assessment of a taxpayer's financial capacity.

Qualifying for Currently Not Collectible (CNC) Status in Colorado

For taxpayers in Colorado experiencing financial hardship, Currently Not Collectible (CNC) status can provide a temporary reprieve from IRS enforced collection actions. To qualify, you must demonstrate to the IRS that your allowable monthly living expenses, as determined by the IRS Collection Financial Standards, meet or exceed your monthly income, leaving no funds available for tax payments. This process typically involves submitting a detailed Form 433-A. For an illustrative single filer in Las Animas County, this might mean allowable expenses combining a reasonable housing cost (e.g., $1010.0 for a 2BR from HUD FMR), National Food & Other Standards ($812), National Healthcare Standards ($75), and Local Transportation Standards ($858), totaling $2745.0 before other necessary expenses. If your income falls below this, the IRS may place your account in CNC status under IRM 5.16.1.1, leading to the release of levies as per IRC §6343. It's important to note that CNC status does not forgive the debt, and the 10-year Collection Statute Expiration Date (CSED) under IRC §6502 generally continues to run while in CNC.

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Frequently Asked Questions

For Las Animas County, Colorado, the IRS Collection Financial Standards for Housing and Utilities are listed as 'N/A' for all household sizes in 2025. This means the IRS will evaluate your actual, reasonable housing and utility expenses. While there isn't a fixed IRS allowance, the Department of Housing & Urban Development (HUD) provides Fair Market Rent (FMR) data, which can serve as a guide for what's considered reasonable. For example, the HUD FY2025 FMR for a 2-bedroom unit in Las Animas County is $1010.0 per month. If your actual expenses are higher, you may need to demonstrate their necessity to the IRS, a process detailed in Internal Revenue Manual (IRM) 5.15.1.10 for requesting a deviation from the standards.
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 meeting necessary living expenses. This involves submitting a comprehensive Form 433-A, Collection Information Statement, detailing your income, assets, and expenses. The IRS will compare your income against your allowable expenses, which include National Standards (like $812 for a single person's food and other costs) and Local Standards (such as $858 for transportation for a single car in Las Animas County). If your income does not exceed these established standards, the IRS may determine that you qualify for CNC status under Internal Revenue Manual (IRM) 5.16.1.1, signifying an economic hardship per IRC §6343(a)(1)(D).
When the IRS issues a wage levy (Form 668-W) in Las Animas County, Colorado, they cannot take your entire paycheck. The amount exempt from levy is determined by IRS Publication 1494, Table for Figuring Amount Exempt from Levy, which is based on your filing status and number of dependents. For 2025, a single individual with zero dependents has $1096.67 per month exempt from levy, while a single individual with one dependent has $1680.0 per month exempt. Any amount above this exemption can be levied by the IRS under IRC §6331. Colorado state wage garnishment laws generally follow federal Consumer Credit Protection Act (CCPA) limits, which typically exempt 25% of disposable earnings or the amount above 30 times the federal minimum wage, but federal tax levies supersede these if the federal exemption is lower.
Since the IRS Collection Financial Standards for Housing and Utilities are listed as 'N/A' for Las Animas County, Colorado, the IRS will generally consider your actual, reasonable housing expenses. If your rent exceeds what the IRS might consider reasonable, perhaps benchmarked against the HUD FY2025 Fair Market Rent for a 2-bedroom unit at $1010.0, you can still justify your actual expenses. You would need to provide documentation and a detailed explanation demonstrating that your higher housing costs are necessary and unavoidable. Internal Revenue Manual (IRM) 5.15.1.10 specifically allows for deviations from standard allowances when a taxpayer can prove that their necessary expenses exceed the standard amounts, provided proper substantiation is submitted for review.
The IRS generally has 10 years to collect a tax debt, a period known as the Collection Statute Expiration Date (CSED), established by Internal Revenue Code (IRC) §6502. This 10-year period typically begins from the date the tax was assessed. It's crucial to understand that certain actions can extend or suspend the CSED, such as filing for bankruptcy, requesting an Offer in Compromise (Form 656), or requesting a Collection Due Process (CDP) hearing. While being placed in Currently Not Collectible (CNC) status (IRM 5.16.1) provides a temporary halt to active collection efforts and can lead to the release of a levy under IRC §6343, it generally does not extend the CSED. This means if the 10-year period expires while your account is in CNC, the IRS can no longer legally collect the debt.

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