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Marshall County, South Dakota: Navigating IRS Wage Levy and Hardship

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

Understanding IRS Collection Standards in Marshall County

For taxpayers in Marshall County, South Dakota, facing IRS collection actions, understanding the IRS Collection Financial Standards is crucial. These standards, utilized when evaluating your ability to pay via Form 433-A, 'Collection Information Statement for Wage Earners and Self-Employed Individuals,' dictate the allowable monthly expenses for your household. The IRS calculates your disposable income by subtracting these essential expenses from your gross income. While specific local housing and utilities standards are not provided for Marshall County, the National Standards for Food, Clothing & Other allow a single person $812 per month, escalating to $1983 for a family of four. These figures are derived from IRS.gov Collection Financial Standards, which integrates data from the Bureau of Labor Statistics (BLS) Consumer Expenditure Survey and the US Census Bureau. Demonstrating that an IRS levy creates an economic hardship, as defined by IRC §6343(a)(1)(D), is key to securing relief.

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

Unlike many regions, Marshall County, South Dakota, does not have specific IRS Local Standards for Housing & Utilities listed, showing as $N/A across all household sizes. This means the IRS will evaluate your actual housing expenses. For comparison, the HUD FY2025 Fair Market Rent (FMR) data for Marshall County indicates a 2-bedroom unit averages $1060.0 per month. If your actual, necessary housing costs exceed a reasonable amount as determined by the IRS, you may need to request a deviation from the standard, a process outlined in Internal Revenue Manual (IRM) 5.15.1.10. While regional shelter CPI data is not available for Marshall County, demonstrating that your actual rent aligns with or is below the HUD FMR can support your claim for necessary expenses, especially when local IRS standards are undefined.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS Collection Financial Standards provide specific allowances for other essential living costs. For food, clothing, and other necessities, a single individual in Marshall County, South Dakota, is allowed $812 per month, while a family of four can claim $1983. These National Standards are based on the Bureau of Labor Statistics Consumer Expenditure Survey. Healthcare costs also have specific allowances: $75 per person under 65 and $153 per person for those 65 and over, derived from the Medical Expenditure Panel Survey. Transportation allowances for Marshall County include $588 for one car ownership and an additional $270 for operating costs, totaling $858 monthly for a single vehicle. These Local Transportation Standards are based on BLS data and American Automobile Association operating costs, ensuring essential travel expenses are considered.

Qualifying for Currently Not Collectible (CNC) Status in South Dakota

Achieving Currently Not Collectible (CNC) status in South Dakota provides crucial relief from IRS enforced collection actions, such as wage levies (Form 668-W) and bank levies (Form 668-A). To qualify, you must demonstrate to the IRS that your allowable monthly expenses meet or exceed your income, leaving no disposable income for tax payments. This is primarily assessed through Form 433-A. For a single filer in Marshall County, South Dakota, a potential calculation might include: housing (e.g., actual rent, with HUD FMR for a 2BR at $1060.0 as a benchmark), food, clothing, and other at $812, out-of-pocket healthcare at $75, and one-car transportation at $858. If your total necessary expenses, like $1060.0 + $812 + $75 + $858 = $2805.0, exceed your net income, the IRS may place your account in CNC status under IRM 5.16.1, leading to the release of levies per 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.

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Frequently Asked Questions

For Marshall County, South Dakota, the IRS Collection Financial Standards do not list a specific local housing and utilities allowance, showing as $N/A. This means the IRS will evaluate your actual, necessary housing expenses. For context, the HUD FY2025 Fair Market Rent (FMR) for a 2-bedroom unit in Marshall County is $1060.0 per month. Taxpayers must substantiate their actual rent or mortgage payments, utilities, and other housing-related costs. If these expenses are deemed reasonable and necessary, they will be factored into your ability-to-pay calculation on Form 433-A. It's crucial to document all housing costs thoroughly for IRS review.
To qualify for Currently Not Collectible (CNC) status in South Dakota, you must demonstrate to the IRS that you lack the financial ability to pay your tax debt due to economic hardship. This involves submitting IRS Form 433-A, 'Collection Information Statement for Wage Earners and Self-Employed Individuals,' which details your income, assets, and allowable expenses. The IRS will compare your income against the National and Local Collection Financial Standards. For example, a single person in Marshall County is allowed $812 for food, clothing, and other expenses, plus $858 for one-car transportation. If your total allowable expenses, including your substantiated housing costs, exceed your net income, the IRS may place your account in CNC status per IRM 5.16.1. This temporarily halts collection activity without extending the 10-year collection statute (IRC §6502).
When the IRS issues a wage levy (Form 668-W) in Marshall County, South Dakota, the amount taken from your paycheck is determined by IRS Publication 1494, 'Table for Figuring Amount Exempt from Levy.' For 2025, specific monthly exempt amounts are protected from levy. For instance, a single individual with zero dependents is exempt for $1096.67 per month. A single individual with one dependent is exempt for $1680.0 per month. The IRS can only levy the portion of your disposable earnings that exceeds these statutory exemption amounts. It is critical to understand these figures, as they represent the minimum income you are legally entitled to retain for living expenses before a federal wage levy can attach.
In Marshall County, South Dakota, the IRS Collection Financial Standards show $N/A for housing and utilities, meaning there isn't a fixed standard to exceed. Instead, the IRS will assess your actual, necessary housing expenses. For reference, the HUD FY2025 Fair Market Rent for a 2-bedroom unit in Marshall County is $1060.0. If your actual, necessary rent or mortgage payment is higher than what the IRS deems reasonable, even in the absence of a published standard, you can request a deviation. IRM 5.15.1.10 outlines the process for requesting such a deviation, requiring you to provide documentation and a compelling explanation for why your higher expense is both necessary and reasonable, demonstrating it's essential for your health and welfare.
The IRS has a statutory period to collect tax debts, known as the Collection Statute Expiration Date (CSED), as defined by Internal Revenue Code (IRC) §6502. Generally, the IRS has 10 years from the date of assessment to collect the tax. This 10-year period can be suspended or extended by certain actions, such as filing for bankruptcy, an Offer in Compromise (Form 656), or a Collection Due Process appeal. However, being placed in Currently Not Collectible (CNC) status, as outlined in IRM 5.16.1, does not extend the CSED. This makes CNC a valuable strategy for taxpayers in Marshall County, South Dakota, as it can temporarily halt collection efforts without giving the IRS more time to pursue the debt, potentially allowing the CSED to expire.

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