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Navigating IRS Wage Levy and Hardship in Moffat County, Colorado

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

Understanding IRS Collection Standards in Moffat County

When facing IRS collection actions in Moffat County, Colorado, understanding the IRS Collection Financial Standards is paramount. The IRS uses these standards to determine your ability to pay your tax debt, primarily through an analysis documented on Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals. These standards dictate the maximum allowable monthly expenses for categories like food, housing, and transportation, ultimately calculating your disposable income. For a single individual, the National Standard for food is $449, with a total 'Food, Clothing & Other' allowance of $812 per month. While specific IRS Local Housing Standards are not provided for Moffat County, the IRS relies on data from IRS.gov, the Bureau of Labor Statistics (BLS), and the US Census Bureau to establish these figures. If your allowable expenses exceed your income, you may qualify for economic hardship relief under IRC §6343(a)(1)(D), potentially leading to a levy release or Currently Not Collectible (CNC) status.

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

For Moffat County, CO, the IRS Collection Financial Standards do not specify a Local Standard for Housing and Utilities. In such cases, taxpayers must propose an actual, reasonable amount for their housing expenses on Form 433-A. For comparison, the HUD FY2025 Fair Market Rent (FMR) data for Moffat County indicates a 2-bedroom unit at $1080.0 per month. If your actual, necessary housing expenses, such as rent or mortgage payments, significantly exceed the IRS's general expectations or the HUD FMR, you can argue for a deviation from the standard. Internal Revenue Manual (IRM) 5.15.1.10 outlines the procedures for allowing expenses that exceed the established standards when justified by the taxpayer's facts and circumstances. Demonstrating that your legitimate housing costs, like the $1080.0 for a 2BR, are essential and exceed a non-existent IRS standard strengthens your case for a deviation. Unfortunately, specific regional shelter CPI data from the Bureau of Labor Statistics is not available for this region to show year-over-year increases.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS provides National and Local Standards for other essential living expenses in Moffat County. The National Standards for 'Food, Clothing & Other' are crucial: a 1-person household is allowed $812 per month, while a 4-person household can claim $1983. This includes $449 for food, $44 for housekeeping supplies, $99 for apparel, $45 for personal care products, and $175 for miscellaneous items for a single individual, all derived from the Bureau of Labor Statistics Consumer Expenditure Survey. Healthcare is another vital allowance, with National Standards permitting $75 per person monthly for those under 65 and $153 for those 65 and over, based on the Medical Expenditure Panel Survey. For transportation in Moffat County, the IRS Local Standards (derived from BLS data and AAA operating costs) allow $588 for the ownership costs of one car and an additional $270 for operating costs in the region, totaling $858 per month for one vehicle. These allowances are critical for calculating your ability to pay.

Qualifying for Currently Not Collectible (CNC) Status in Colorado

Achieving Currently Not Collectible (CNC) status in Moffat County, Colorado, means the IRS agrees you cannot afford to pay your tax debt right now. To qualify, you must file Form 433-A, detailing your income, assets, and allowable expenses. The IRS then compares your total income against your total allowable expenses using the Collection Financial Standards. For example, a single filer in Moffat County might propose housing expenses of $1080.0 (based on HUD FMR for a 2BR), plus $812 for food, clothing, and other expenses, $75 for healthcare (under 65), and $858 for one car's transportation costs. This totals $2825.0 in monthly allowable expenses. If their net monthly income falls below this amount, they may qualify for CNC. Internal Revenue Manual (IRM) 5.16.1 outlines the procedures for CNC determinations, and once granted, the IRS will typically release any existing levies under IRC §6343. Importantly, CNC status does not extend the Collection Statute Expiration Date (CSED) under IRC §6502, which generally limits the IRS to 10 years to collect the debt.

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Frequently Asked Questions

For Moffat County, Colorado, the IRS Collection Financial Standards do not provide a specific Local Standard for Housing and Utilities. This means taxpayers must document their actual, reasonable housing expenses on Form 433-A. For context, the HUD FY2025 Fair Market Rent for a 2-bedroom unit in Moffat County is $1080.0 per month. If your necessary housing costs are at or around this figure, or even higher, you can propose this amount to the IRS. You must be prepared to justify any proposed amount, especially if it significantly exceeds typical local costs or HUD FMRs, by demonstrating it is reasonable and essential for your household, as outlined in IRM 5.15.1.10.
To qualify for Currently Not Collectible (CNC) status in Colorado, you must demonstrate to the IRS that you lack the financial ability to pay your tax debt. This process begins by completing and submitting Form 433-A, Collection Information Statement, which details your income, assets, and all allowable monthly expenses based on IRS National and Local Standards. For example, a single person in Moffat County would be allowed $812 for food, clothing, and other expenses, $75 for healthcare (under 65), and $858 for transportation. If your total allowable expenses, including a justified housing amount (e.g., $1080.0 for a 2BR based on HUD FMR), exceed your net monthly income, the IRS may place your account in CNC status, temporarily halting collection efforts as per IRM 5.16.1. This is a temporary status, and the IRS may review your financial situation periodically.
The IRS can levy a portion of your wages in Moffat County, CO, using Form 668-W, Notice of Levy on Wages, Salary, and Other Income. However, the law provides for a statutory exemption amount that protects a portion of your earnings from levy. According to IRS Publication 1494 for 2025, a single individual with zero dependents is exempt $1096.67 per month. For a single individual with one dependent, the exempt amount rises to $1680.0 per month. The IRS will only levy wages above these specific exempt amounts. Colorado follows federal Consumer Credit Protection Act (CCPA) limits for state garnishments, but IRS levies generally supersede these limits, taking precedence up to the amount specified by federal law and Publication 1494.
If your rent or mortgage payments in Moffat County, CO, exceed the IRS's unstated Local Housing Standard (since one is not provided for this area), you have the right to request a deviation. For instance, if your actual rent is $1080.0 for a 2-bedroom unit, aligning with the HUD FY2025 Fair Market Rent, you would propose this amount on Form 433-A. Internal Revenue Manual (IRM) 5.15.1.10 allows for expenses exceeding standard amounts if they are necessary and reasonable given your individual circumstances. You must provide documentation, such as a lease agreement or mortgage statements, to substantiate your actual housing costs and explain why these expenses are essential and cannot be reduced, thereby strengthening your argument for a deviation.
The IRS generally has 10 years to collect a tax debt, a period known as the Collection Statute Expiration Date (CSED), as outlined in Internal Revenue Code (IRC) §6502. This 10-year period typically begins from the date the tax was assessed. While certain actions, such as filing an Offer in Compromise or requesting a Collection Due Process hearing, can temporarily suspend the CSED, being placed in Currently Not Collectible (CNC) status does not extend it. This means that if your account is in CNC status for several years, the 10-year collection window continues to run, and the debt may expire without the IRS collecting it. Understanding your CSED is a critical component of any long-term IRS collection resolution strategy.

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