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Merrimack County, New Hampshire IRS Wage Levy & Hardship Relief

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

Understanding IRS Collection Standards in Merrimack County

Navigating IRS enforced collection actions, such as wage or bank levies (IRC §6331), can be overwhelming for taxpayers in Merrimack County, New Hampshire. The IRS evaluates a taxpayer's ability to pay using financial information gathered on Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals. This assessment utilizes IRS National and Local Standards to determine disposable income, which is the amount the IRS believes you can afford to pay towards your tax debt. For instance, the National Standards for Food, Clothing, and Other necessities allocate $812 monthly for a single person, increasing to $1983 for a four-person household, based on Bureau of Labor Statistics Consumer Expenditure Survey data. While specific local housing standards are not published for Merrimack County, actual reasonable expenses are considered. Understanding these standards is critical, as they can determine eligibility for economic hardship provisions under IRC §6343(a)(1)(D), potentially leading to a levy release. These standards are meticulously derived from sources like IRS.gov Collection Financial Standards, the Bureau of Labor Statistics (BLS), and the US Census Bureau.

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

For Merrimack County, New Hampshire, the IRS Collection Financial Standards do not provide a specific local housing and utilities allowance (listed as $N/A). In such cases, the IRS will consider a taxpayer's actual housing and utility expenses, provided they are reasonable and necessary. This often means that a taxpayer's documented rent or mortgage payment is used in the calculation of their allowable expenses. For context, the HUD FY2025 Fair Market Rent (FMR) for Merrimack County indicates a 2-bedroom unit averages $2350.0 per month, and a 1-bedroom averages $1790.0. If your actual housing costs exceed what the IRS might initially deem reasonable, you can request a deviation from the standard, as outlined in IRM 5.15.1.10. Documenting that your actual rent, such as $2350.0 for a 2-bedroom, is consistent with local FMR data strengthens your argument for such a deviation. While regional shelter CPI data is not available for this specific area, the robust HUD FMR figures underscore the reality of housing costs in Merrimack County, NH, which taxpayers must account for when facing IRS collection.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS allows for essential living expenses across several categories for Merrimack County, NH taxpayers. The National Standards for Food, Clothing, and Other allocate $812 per month for a single individual (comprising $449 for Food, $44 for Housekeeping, $99 for Apparel, $45 for Personal Care, and $175 for Miscellaneous), increasing to $1983 for a four-person household. These figures are based on the Bureau of Labor Statistics Consumer Expenditure Survey. For healthcare, the IRS National Standards for Out-of-Pocket Healthcare allow $75 per person monthly for those under 65, and $153 per person monthly for those 65 and over, derived from the Medical Expenditure Panel Survey. This means a family of four, all under 65, would be allowed $300 per month. Transportation allowances in Merrimack County are significant: a single car ownership allowance is $588, with an additional $270 for operating costs in the region, totaling $858 per month for one vehicle. For two vehicles, the total allowance is $1446 monthly. These local transportation standards are based on BLS data and American Automobile Association (AAA) operating cost analyses.

Qualifying for Currently Not Collectible (CNC) Status in New Hampshire

For Merrimack County, New Hampshire taxpayers experiencing financial hardship, Currently Not Collectible (CNC) status offers a vital reprieve from IRS enforced collection. To qualify, you must demonstrate to the IRS that your allowable living expenses equal or exceed your monthly income, leaving no disposable income to pay your tax debt. This is primarily assessed through Form 433-A. For a single filer in Merrimack County, a calculation might include a reasonable housing expense (e.g., the HUD FMR for a 1-bedroom at $1790.0), plus $812 for National Standard food/clothing/other, $75 for healthcare (under 65), and $858 for one-car transportation, totaling $3535.0 in monthly allowable expenses. If your net monthly income is less than or equal to this amount, you may qualify for CNC. The IRS outlines procedures for CNC in IRM 5.16.1. If granted, the IRS will temporarily cease collection efforts, and any active levies, such as a wage levy (Form 668-W) or bank levy (Form 668-A), will be released under IRC §6343. It is crucial to understand that CNC status does not forgive the debt; the 10-year Collection Statute Expiration Date (CSED) under IRC §6502 continues to run while in CNC, meaning the IRS's time to collect does not extend.

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Frequently Asked Questions

For Merrimack County, New Hampshire, the IRS does not publish a specific local housing and utilities allowance, indicating 'N/A' in their Collection Financial Standards. Instead, the IRS considers your actual, reasonable housing expenses. This means you must provide documentation, such as your lease or mortgage statement, and utility bills. For reference, the HUD FY2025 Fair Market Rent for a 1-bedroom unit in Merrimack County is $1790.0, and for a 2-bedroom, it is $2350.0. If your actual housing costs exceed what the IRS might initially deem reasonable, you can request a deviation under IRM 5.15.1.10, providing compelling evidence that your expenses are necessary and customary for the area. Accuracy in reporting these expenses on Form 433-A is paramount.
To qualify for Currently Not Collectible (CNC) status in New Hampshire, you must demonstrate to the IRS that you lack the financial ability to pay your tax debt. This typically involves submitting Form 433-A, Collection Information Statement, detailing your income, assets, and allowable living expenses. The IRS compares your net monthly income against their National and Local Standards. For example, a single individual in Merrimack County would be allowed $812 for food, clothing, and other necessities, and $858 for one-car transportation. If your total allowable expenses (including housing, healthcare, and other necessary costs) equal or exceed your income, the IRS may place your account in CNC status under IRM 5.16.1. This temporarily halts collection activity, but the tax debt remains and penalties/interest may continue to accrue.
When the IRS issues a wage levy (Form 668-W) in Merrimack County, New Hampshire, 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 varies based on your filing status and number of claimed dependents. For 2025, a single taxpayer with zero dependents has $1096.67 exempt from a monthly levy, while a single taxpayer with one dependent has $1680.0 exempt. For a married individual filing jointly with zero dependents, $1096.67 is also exempt, rising to $2286.67 with one dependent. The remaining portion of your disposable earnings, after the exemption, is subject to the levy as per IRC §6331. New Hampshire follows federal Consumer Credit Protection Act (CCPA) limits, meaning the IRS will take the lesser of 25% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum wage, after applying the Pub 1494 exemption.
If your rent in Merrimack County, New Hampshire, exceeds the IRS's unstated housing allowance (which is 'N/A' for this area, meaning actual reasonable expenses are considered), you have recourse. You must document your actual housing costs on Form 433-A. For instance, if your rent is $1790.0 for a 1-bedroom or $2350.0 for a 2-bedroom (based on HUD FY2025 Fair Market Rent data), and this is a necessary expense, the IRS can allow for it. If your expenses are higher than what an IRS revenue officer might initially allow, you can request a deviation from the standard per IRM 5.15.1.10. You will need to provide strong documentation, such as your lease, utility bills, and proof that your housing costs are reasonable for Merrimack County. Demonstrating that your expenses cause an economic hardship, as defined under IRC §6343(a)(1)(D), is key to having these higher costs recognized and preventing undue hardship from collection actions.
The IRS generally has 10 years to collect a tax debt, a period known as the Collection Statute Expiration Date (CSED), as outlined in IRC §6502. This 10-year clock typically starts from the date the tax was assessed. It's crucial for taxpayers in Merrimack County, New Hampshire, to understand that certain actions can extend this period, such as filing an Offer in Compromise (Form 656), requesting a Collection Due Process hearing, or residing outside the U.S. However, if your account is placed in Currently Not Collectible (CNC) status due to financial hardship (IRM 5.16.1), the CSED does not pause or extend. The 10-year collection window continues to run even while the IRS is not actively pursuing collection. This makes CNC status a powerful strategy for managing tax debt, as it can allow the statute of limitations to expire without full payment if the hardship persists.

Sources & Methodology