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McCone County, Montana IRS Wage Levy & Hardship: Your 2025 Collection Guide

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

Understanding IRS Collection Standards in McCone County

When facing IRS collection actions in McCone County, Montana, understanding the IRS Collection Financial Standards is crucial. The IRS uses these standards, outlined on IRS.gov and derived from US Census Bureau American Community Survey and Bureau of Labor Statistics data, to determine a taxpayer's ability to pay, typically documented on Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals. These standards establish allowable monthly expenses for categories like food, housing, transportation, and healthcare, calculating your disposable income. For instance, a single individual in McCone County is allowed $812 monthly for food, clothing, and other necessities. If your income, after accounting for these allowable expenses, leaves you with insufficient funds for basic living, the IRS may determine that an economic hardship exists, as defined by IRC §6343(a)(1)(D), potentially leading to levy release or an Offer in Compromise.

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

For McCone County, Montana, the IRS Collection Financial Standards currently list 'N/A' for Housing and Utilities allowances, meaning there isn't a pre-set local standard. In such cases, the IRS typically allows actual necessary expenses. However, the U.S. Department of Housing & Urban Development (HUD) provides FY2025 Fair Market Rent (FMR) data, which serves as a realistic benchmark for housing costs. For example, the HUD FMR for a 2-bedroom residence in McCone County is $1540.0 per month. If your actual housing expenses exceed what the IRS might deem reasonable, or if you need to justify an amount in the absence of a specific IRS standard, you can request a deviation. IRM 5.15.1.10 outlines the procedures for requesting such deviations, requiring clear documentation that your housing costs are necessary and reasonable. While regional Shelter CPI data for McCone County is unavailable, using the HUD FMR as a baseline strengthens any argument that your housing expenses are legitimate and essential for your household.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS provides National Standards for Food, Clothing & Other, and Out-of-Pocket Healthcare, alongside Local Standards for Transportation. For McCone County residents, these allowances help define a reasonable cost of living. A single person is allocated $812 per month for food, housekeeping, apparel, personal care, and miscellaneous expenses, while a family of four receives $1983, based on Bureau of Labor Statistics Consumer Expenditure Survey data. Healthcare allowances are $75 per person under 65 and $153 per person 65 and over, derived from the Medical Expenditure Panel Survey. Transportation costs in McCone County are significant, with a single-car ownership allowance of $588 and a regional operating cost of $270, totaling $858 per month for one vehicle. These figures, sourced from BLS data and American Automobile Association operating costs, are critical components when calculating your ability to pay and negotiating with the IRS.

Qualifying for Currently Not Collectible (CNC) Status in Montana

Achieving Currently Not Collectible (CNC) status in McCone County, Montana, means the IRS agrees you cannot afford to pay your tax debt due to financial hardship. To qualify, you must submit a detailed financial statement, typically Form 433-A, to demonstrate that your necessary monthly expenses exceed your income. For a single filer in McCone County, this might involve summing expenses like an estimated housing cost (e.g., $1540.0 based on HUD FMR for a 2BR due to N/A IRS standard), plus the National Standard for food ($812), healthcare ($75 if under 65), and transportation ($858 for one car). If the total of these allowable expenses ($1540.0 + $812 + $75 + $858 = $3285.0) surpasses your monthly income, you may qualify for CNC. IRM 5.16.1 details the procedures for CNC status, which can lead to the release of levies under IRC §6343. Importantly, while CNC status pauses collection, it does not stop interest and penalties from accruing, nor does it extend the Collection Statute Expiration Date (CSED) under IRC §6502, which generally limits the IRS to 10 years for collection.

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Frequently Asked Questions

For McCone County, Montana, the official IRS Collection Financial Standards for Housing and Utilities are currently listed as 'N/A' for all household sizes in 2025. This means the IRS does not have a pre-determined local standard. Instead, they will consider your actual, reasonable, and necessary housing expenses. For reference, the HUD FY2025 Fair Market Rent (FMR) for a 2-bedroom residence in McCone County is $1540.0 per month, which can serve as a practical benchmark for what constitutes a reasonable expense in the absence of an IRS standard. If your actual housing costs are higher, you may need to provide documentation and request a deviation per IRM 5.15.1.10, demonstrating the necessity of your expenses. These standards are derived from IRS Collection Financial Standards and HUD data.
To qualify for Currently Not Collectible (CNC) status in Montana, you must demonstrate to the IRS that you lack the financial ability to pay your tax debt. This process begins by filing Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals, detailing your income, assets, and monthly expenses. The IRS will compare your income against their National and Local Collection Financial Standards. For example, if your income after essential expenses like the $812 for a single person's food/clothing, $75 for healthcare (under 65), and $858 for one-car transportation, plus reasonable housing (e.g., $1540.0 for a 2BR based on HUD FMR in McCone County), leaves you with no disposable income, you may qualify. IRM 5.16.1 outlines the procedures for CNC designation, which can lead to the release of IRS levies under IRC §6343, providing temporary relief from enforced collection.
When the IRS issues a wage levy (Form 668-W) in McCone County, Montana, they cannot seize your entire paycheck. The amount exempt from levy is determined by IRS Publication 1494, Table for Figuring Amount Exempt from Levy, which considers your filing status and number of dependents. For 2025, a single individual with zero dependents has $1096.67 of their monthly wages protected from levy. A single individual with one dependent is exempt up to $1680.0 per month. For those married filing jointly with one dependent, $2286.67 is exempt. Any earnings above these specified amounts are subject to the levy. Montana generally follows federal Consumer Credit Protection Act (CCPA) limits, which typically restrict garnishment to 25% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum wage, whichever is less restrictive for the taxpayer.
If your rent in McCone County, Montana, exceeds the IRS housing allowance, which is currently listed as 'N/A' in the Collection Financial Standards for this area, you have a strong basis to argue for a deviation. The IRS recognizes that actual necessary expenses can differ from standard amounts. For instance, if your rent is $1540.0 for a 2-bedroom home, aligning with the HUD FY2025 Fair Market Rent, you would present this as your actual housing expense. Under IRM 5.15.1.10, taxpayers can request a deviation from standard allowances if they can demonstrate that their actual expenses are necessary and reasonable. You will need to provide documentation, such as rental agreements and utility bills, to support your claim. This is a critical step in accurately reflecting your true financial situation to the IRS and potentially qualifying for an Offer in Compromise or Currently Not Collectible status.
The IRS generally has 10 years to collect a tax debt, a period known as the Collection Statute Expiration Date (CSED). This 10-year period is established by Internal Revenue Code (IRC) §6502, and it typically begins from the date the tax was assessed. It's crucial for McCone County taxpayers to understand that certain actions can pause or extend this period, such as filing for bankruptcy, requesting an Offer in Compromise (Form 656), or living outside the U.S. However, obtaining Currently Not Collectible (CNC) status, while pausing active collection efforts, does NOT extend the CSED. This means the 10-year clock continues to run even while your account is in CNC status. Monitoring your CSED is vital because once this period expires, the IRS is legally barred from collecting the tax debt, making it a critical aspect of any long-term tax resolution strategy.

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