IRS Wage Levy & Hardship Relief in Morgan County, Colorado

When the IRS assesses your ability to pay a tax debt, they utilize specific Collection Financial Standards to determine your disposable income. This process, often initiated via IRS Form 433-A (Collection Information Statement for Wage Earners and Self-Employed Individuals), allows the IRS to calculate a reasonable amount you can pay monthly. For residents of Morgan County, CO, these standards include National Standards for categories like food and clothing, and Local Standards for transportation. For example, a single individual is allocated $812 monthly for food, clothing, and other necessities, based on Bureau of Labor Statistics data. While specific IRS Local Housing & Utilities Standards are not provided for Morgan County, CO, the IRS will consider your actual necessary expenses. If your income falls below these allowable expenses, you may qualify for economic hardship status under IRC §6343(a)(1)(D), potentially preventing or releasing an IRS levy. All these figures are derived from authoritative sources like IRS.gov, the Bureau of Labor Statistics, and the U.S. Census Bureau.

For residents of Morgan County, Colorado, the IRS Collection Financial Standards do not provide a specific local allowance for Housing & Utilities, showing as $N/A. This means the IRS will evaluate your actual necessary housing expenses. However, a critical benchmark is the U.S. Department of Housing and Urban Development (HUD) Fair Market Rent (FMR) data for Morgan County, which lists a 2-bedroom unit at $1380.0 per month for FY2025. If your actual housing costs, such as rent or mortgage payments, exceed the IRS's unstated or implicitly lower threshold, you can argue for a deviation from standard allowances. Internal Revenue Manual (IRM) 5.15.1.10 explicitly allows for such deviations when a taxpayer can demonstrate that their necessary expenses are higher than the published standards. Presenting evidence that your rent aligns with or is below the HUD FMR of $1380.0 for a reasonable dwelling size significantly strengthens your case for a higher allowable expense. While regional Shelter CPI data is not available for Morgan County, comparing your actual costs to the HUD FMR is a robust strategy.

Beyond housing, the IRS provides National Standards for essential living expenses across Morgan County, CO. For food, clothing, and other necessities, a single individual is allowed $812 per month, while a family of four is allocated $1983 monthly, based on the Bureau of Labor Statistics Consumer Expenditure Survey. Healthcare costs are also standardized: individuals under 65 are allowed $75 per month, and those 65 and over receive $153 monthly, per person, derived from the Medical Expenditure Panel Survey. This means a family of four, all under 65, would be allowed $300 for healthcare. For transportation in Morgan County, CO, the IRS Local Standards for the region allow $588 per month for one car ownership and an additional $270 for operating costs, totaling $858 per month for a single vehicle. These figures, based on Bureau of Labor Statistics data and American Automobile Association operating costs, are crucial for calculating your total allowable expenses when negotiating with the IRS or seeking hardship status.

Achieving Currently Not Collectible (CNC) status in Morgan County, Colorado, means the IRS agrees you cannot afford to pay your tax debt due to economic hardship. To qualify, you must file IRS Form 433-A, providing a comprehensive overview of your income, assets, and necessary monthly expenses. The IRS then compares your total income to your total allowable expenses, using the standards discussed. For a single filer in Morgan County, a potential calculation might include: $1380.0 (HUD FMR for 2BR housing) + $812 (National Standard for food/clothing) + $75 (National Standard for healthcare under 65) + $858 (Local Standard for 1 car transportation) = $3125.0 in total allowable monthly expenses. If your net monthly income is less than this total, you could qualify for CNC status. IRM 5.16.1 outlines the procedures for placing an account in CNC status, and under IRC §6343, the IRS must release a levy if it creates an economic hardship. It's important to note that while CNC status temporarily halts collection efforts, it does not stop the accrual of penalties and interest, nor does it extend the Collection Statute Expiration Date (CSED) of 10 years, as defined by IRC §6502.