Longview, Texas IRS Wage Levy & Hardship Assistance

For taxpayers in Longview, Texas facing IRS enforced collection, understanding the IRS Collection Financial Standards is crucial. These standards, utilized when preparing IRS Form 433-A, Collection Information Statement, determine your allowable monthly living expenses, which are then subtracted from your income to calculate your disposable income. The IRS uses these figures to assess your ability to pay your tax debt, and to determine if an economic hardship exists, as outlined in Internal Revenue Code (IRC) §6343(a)(1)(D). For instance, the National Standard for a single person's food allowance is $449 per month. While specific local housing standards are not provided for the Longview, TX HUD Metro FMR Area, the IRS applies National Standards for categories like food, clothing, and other necessities, derived from Bureau of Labor Statistics (BLS) Consumer Expenditure Surveys, and local standards for transportation, often based on BLS data and American Automobile Association (AAA) operating costs. This data is critical for demonstrating your financial situation to the IRS, sourced directly from IRS.gov, BLS, and US Census Bureau data.

The IRS Collection Financial Standards do not provide a specific housing and utilities allowance for the Longview, TX HUD Metro FMR Area. In such cases, taxpayers are generally permitted to claim their actual, reasonable housing and utility expenses. However, these actual expenses are subject to IRS review for reasonableness. To provide a benchmark for what constitutes a reasonable expense in Longview, Texas, the US Department of Housing & Urban Development (HUD) Fair Market Rent (FMR) data is highly relevant. For example, the HUD FMR for a 2-bedroom residence in Longview, TX is $1190.0 per month. If your actual housing costs exceed what the IRS might typically allow, you can request a deviation from the standard, as permitted by Internal Revenue Manual (IRM) 5.15.1.10, by providing documentation that your expenses are necessary and reasonable for your geographic area. While regional shelter CPI data is not available for this specific region, the HUD FMR provides a strong, data-backed argument for your housing costs, which is especially important when no direct IRS housing standard exists.

Beyond housing, the IRS provides specific allowances for essential living expenses. For food, clothing, and other necessities, the National Standards apply uniformly across the U.S. A single individual in Longview, Texas, is allowed $812 per month, while a family of four is allowed $1983 per month. These figures are derived from the Bureau of Labor Statistics Consumer Expenditure Survey. For out-of-pocket healthcare expenses, the IRS allows $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. This means a family of four, all under 65, would be allowed $300 per month. Transportation allowances are also critical. For Longview, TX, the IRS Local Standards for Transportation allow $588 per month for one owned car (ownership costs) plus an additional $270 per month for operating costs, totaling $858 for one vehicle. For two vehicles, the allowance is $1176 for ownership and $270 for operating, totaling $1446. These figures are based on Bureau of Labor Statistics data and American Automobile Association operating costs, ensuring a fair representation of local transportation expenses.

Achieving Currently Not Collectible (CNC) status in Texas means the IRS has determined you cannot afford to pay your tax debt after accounting for necessary living expenses. To qualify, you must submit IRS Form 433-A, Collection Information Statement, detailing your income, assets, and expenses. The IRS then compares your total income to your total allowable expenses, which include the National and Local Standards discussed above. If your allowable expenses equal or exceed your income, leaving no disposable income, the IRS may place your account in CNC status. For a single filer in Longview, TX, a hypothetical calculation might include their actual reasonable housing (e.g., using the 1-bedroom HUD FMR of $1010.0), plus the National Standard for food ($812), out-of-pocket healthcare ($75 for under 65), and transportation ($858 for one car), totaling $2755.0. If your income is less than or equal to this total, you may qualify. IRM 5.16.1 outlines the procedures for CNC designation, and IRC §6343 allows for the release of a levy if it creates economic hardship. Importantly, CNC status does not forgive the debt; it temporarily pauses collection efforts. The Collection Statute Expiration Date (CSED), governed by IRC §6502, generally limits the IRS to 10 years to collect a tax debt, and CNC status does not extend this 10-year collection window.