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Nacogdoches County, Texas IRS Wage Levy & Hardship Relief

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

Understanding IRS Collection Standards in Nacogdoches County, TX

For taxpayers in Nacogdoches County, TX facing IRS collection actions, understanding the IRS Collection Financial Standards is crucial. These standards, utilized when evaluating a taxpayer's ability to pay through Form 433-A, Collection Information Statement, determine your allowable monthly living expenses. The IRS uses a combination of National and Local Standards to calculate your disposable income, which dictates potential payment arrangements or eligibility for hardship status. For a single individual in Nacogdoches County, the National Standard for Food, Clothing, and Other necessities is $812 per month. While specific local housing allowances are not provided by the IRS for Nacogdoches County, TX, taxpayers must substantiate their actual housing costs. These standards are meticulously derived from data provided by the Bureau of Labor Statistics (BLS) Consumer Expenditure Survey, US Census Bureau American Community Survey, and IRS.gov Collection Financial Standards, directly impacting whether the IRS can determine an economic hardship under IRC §6343(a)(1)(D).

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

For Nacogdoches County, TX, the IRS Collection Financial Standards do not provide a specific Local Standard for Housing and Utilities, indicated as $N/A. In such cases, taxpayers must propose their actual housing and utility expenses on Form 433-A. To support these actual expenses, particularly when seeking a deviation from standard allowances, IRS personnel often consider reliable local data. The Department of Housing & Urban Development (HUD) provides Fair Market Rent (FMR) data, showing a 2-bedroom unit in Nacogdoches County, TX, has an FMR of $1150.0 per month. If your actual housing costs exceed what the IRS might typically allow in areas with established local standards, IRM 5.15.1.10 details the process for requesting a deviation based on necessary expenses. This HUD data can be a strong component in arguing for an increased allowance, especially since regional shelter CPI data is not available for Nacogdoches County, making FMR an important local benchmark.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS provides National Standards for Food, Clothing, and Other necessities, applicable to all taxpayers, including those in Nacogdoches County, TX. A single individual is allowed $812 per month, while a family of four is allotted $1983. These figures are based on the Bureau of Labor Statistics Consumer Expenditure Survey. Healthcare is covered by National Standards for Out-of-Pocket Healthcare, allowing $75 per person monthly for those under 65 and $153 for those 65 and over, derived from the Medical Expenditure Panel Survey. For transportation, Nacogdoches County, TX, falls under the IRS Local Standards. An individual owning one car is allowed $588 for ownership costs plus $270 for operating costs, totaling $858 per month. For two cars, the allowance is $1176 for ownership and $270 for operating, totaling $1446. These transportation allowances are based on Bureau of Labor Statistics data and American Automobile Association operating costs.

Qualifying for Currently Not Collectible (CNC) Status in Texas

Achieving Currently Not Collectible (CNC) status in Texas means the IRS has determined you lack the ability to pay your tax debt, halting active collection efforts like wage levies (Form 668-W) or bank levies (Form 668-A). To qualify, taxpayers in Nacogdoches County, TX, must complete and submit Form 433-A, Collection Information Statement, detailing all income, assets, and expenses. The IRS then compares your total income against your total allowable expenses, using the National and Local Standards. For example, a single filer in Nacogdoches County could justify $1150.0 for 2-bedroom housing (based on HUD FMR), $812 for food, clothing, and other, $75 for healthcare (under 65), and $858 for one-car transportation, totaling $2595.0 in basic allowable expenses. If your income does not exceed this total, you may qualify. IRM 5.16.1 outlines the procedures for placing an account in CNC status, which also triggers a release of levy under IRC §6343. It's vital to remember that while CNC stops collections, it does not erase the debt, and the 10-year Collection Statute Expiration Date (CSED) under IRC §6502 continues to run.

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Frequently Asked Questions

For Nacogdoches County, TX, the IRS Collection Financial Standards for Housing and Utilities are listed as $N/A, meaning there isn't a pre-determined local allowance. Instead, taxpayers must document and justify their actual, necessary housing expenses on IRS Form 433-A. To support these actual costs, especially when they are substantial, the Department of Housing & Urban Development (HUD) Fair Market Rent (FMR) data can be highly relevant. For example, the HUD FMR for a 2-bedroom unit in Nacogdoches County, TX is $1150.0 per month. If your actual rent or mortgage is at or below this FMR, it provides a strong basis for your claimed expense. If your necessary housing costs exceed typical local benchmarks, you may need to request a deviation from standard allowances, as outlined in IRM 5.15.1.10.
To qualify for Currently Not Collectible (CNC) status in Texas, you must demonstrate to the IRS that your allowable monthly expenses meet or exceed your monthly income, leaving no disposable income for tax payments. This process begins by accurately completing IRS Form 433-A, Collection Information Statement, detailing your household income, assets, and all necessary living expenses. The IRS will then compare your reported expenses against their National and Local Collection Financial Standards. For instance, a single individual in Nacogdoches County, TX, would be allowed $812 for food, clothing, and other necessities, and $858 for transportation (one car). If, after accounting for these standards and your actual, necessary housing expenses (e.g., $1150.0 for a 2-bedroom rental based on HUD FMR), your net disposable income is zero or negative, the IRS may place your account in CNC status. The procedures for this are detailed in IRM 5.16.1.
When the IRS issues a wage levy (Form 668-W) in Nacogdoches County, TX, they do not take 100% of your paycheck. Instead, a portion of your wages is exempt from levy, as specified in IRS Publication 1494. The exact exempt amount depends on your filing status and the number of dependents you claim. For 2025, a single individual with zero dependents has $1096.67 per month exempt from levy, while a single individual with one dependent has $1680.0 per month exempt. For a married individual filing jointly with zero dependents, the exemption is also $1096.67 per month, increasing to $2286.67 with one dependent. The remaining portion of your disposable earnings, after these exemptions, is subject to the levy under IRC §6331. Texas state law follows federal Consumer Credit Protection Act (CCPA) limits, which typically mean 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.
If your rent in Nacogdoches County, TX, exceeds the IRS's established Local Standard for Housing and Utilities, it's important to understand that the IRS does not provide a specific dollar amount for this county (it's listed as $N/A). This means you must document your actual, necessary housing costs on IRS Form 433-A. If your actual rent, for example, is $1150.0 for a 2-bedroom unit (consistent with HUD Fair Market Rent data for the area), and this amount is reasonable and necessary for your household, you should claim it. If your necessary housing expenses are higher than what might be considered typical, you can request a deviation from the standard allowances. IRM 5.15.1.10 outlines the process for demonstrating that your higher expenses are necessary and reasonable, and thus should be allowed when determining your ability to pay your tax debt.
The IRS generally has 10 years to collect a tax debt, starting from the date the tax was assessed. This period is known as the Collection Statute Expiration Date (CSED), as outlined in Internal Revenue Code (IRC) §6502. After this 10-year period expires, the IRS is legally barred from collecting the debt. Certain events can pause or extend the CSED, such as filing for bankruptcy, submitting an Offer in Compromise (Form 656), or requesting a Collection Due Process (CDP) hearing. Importantly, if your account is placed in Currently Not Collectible (CNC) status, the 10-year CSED continues to run. CNC status, while providing immediate relief from collection actions, does not extend the collection period. Therefore, pursuing CNC can be a strategic option for taxpayers in Nacogdoches County, TX, if they genuinely cannot pay and the CSED is nearing its expiration.

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