IRS Wage Levy & Hardship Assistance in Manchester, New Hampshire

When facing IRS enforced collection actions, such as a wage or bank levy, understanding the IRS Collection Financial Standards is crucial. The IRS uses Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals, to assess a taxpayer's ability to pay. This form calculates disposable income by subtracting allowable living expenses, which are derived from National and Local Standards. For a single individual in the Manchester, NH HUD Metro FMR Area, National Standards allow $812 per month for food, clothing, and other necessities. While specific IRS Local Housing & Utilities Standards are currently not available for this area, actual necessary expenses are considered, especially when establishing economic hardship under IRC §6343(a)(1)(D). These standards are meticulously compiled from diverse sources including IRS.gov, Bureau of Labor Statistics (BLS) Consumer Expenditure Survey, and the US Census Bureau American Community Survey data.

For taxpayers in the Manchester, NH HUD Metro FMR Area, the IRS Collection Financial Standards indicate that specific local housing and utilities allowances are currently not available (N/A) for any household size. This absence means the IRS will primarily evaluate actual, necessary housing expenses. For context, the HUD FY2025 Fair Market Rent (FMR) data shows a 2-bedroom unit in this area commands $2740.0 per month. If your actual housing costs exceed what the IRS might typically allow in other regions, or if your rent is comparable to the HUD FMR of $2740.0, you can request a deviation from the standard, as outlined in Internal Revenue Manual (IRM) 5.15.1.10. This significantly strengthens your argument for economic hardship. While regional shelter Consumer Price Index (CPI) data is not available for this specific region, the HUD FMR provides a clear benchmark for prevailing housing costs, emphasizing the potential for a significant gap between actual expenses and any implied IRS allowance.

Beyond housing, the IRS allows for essential living expenses covering food, healthcare, and transportation. Under the IRS National Standards, a single individual is allocated $812 monthly for food, clothing, and other necessities. This amount increases to $1478 for a two-person household and $1983 for a four-person household, based on the Bureau of Labor Statistics Consumer Expenditure Survey. For healthcare, the IRS National Standards for Out-of-Pocket Healthcare permit $75 per month for individuals under 65 and $153 for those 65 and over, per person, derived from the Medical Expenditure Panel Survey. Transportation allowances for the Manchester, NH HUD Metro FMR Area include $588 for one owned car and an additional $270 for operating costs, totaling $858 per month for one vehicle. These figures are based on BLS data and American Automobile Association (AAA) operating cost analyses, ensuring taxpayers can maintain essential mobility.

Achieving Currently Not Collectible (CNC) status in New Hampshire provides temporary relief from IRS enforced collection actions. To qualify, you must demonstrate through Form 433-A that your essential living expenses exceed your monthly income, leaving no funds available for tax payments. For example, a single filer in the Manchester, NH HUD Metro FMR Area might demonstrate total allowable expenses including a 2-bedroom HUD Fair Market Rent of $2740.0, National Standard Food/Clothing/Other of $812, National Standard Healthcare of $75, and Local Standard Transportation (1 car) of $858. This totals $4585.0 in monthly allowable expenses. If your net income is less than this amount, the IRS may place your account in CNC status. IRM 5.16.1 outlines the procedures for CNC, confirming that while in this status, the IRS will generally cease collection attempts, including releasing levies under IRC §6343. Importantly, CNC status does not extend the Collection Statute Expiration Date (CSED) under IRC §6502, which typically limits the IRS to 10 years to collect the debt.