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Navigating IRS Wage Levy & Hardship in Nashua, New Hampshire

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

Understanding IRS Collection Standards in Nashua, New Hampshire

When the IRS assesses your ability to pay a tax debt in Nashua, New Hampshire, they utilize strict Collection Financial Standards to determine your disposable income. This process begins with a detailed financial disclosure on Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals. The IRS calculates your allowable expenses by combining National Standards for categories like food, clothing, and personal care, and Local Standards for housing, utilities, and transportation. For a single individual in Nashua, the National Standard for Food, Clothing & Other is $812 monthly. While specific IRS Local Standards for Housing & Utilities are not provided for the Nashua, NH HUD Metro FMR Area, actual reasonable expenses are allowed. These standards ensure that taxpayers retain funds for basic necessities, aligning with IRC §6343(a)(1)(D) which mandates levy release if it creates an economic hardship. This data is derived from authoritative sources including IRS.gov, Bureau of Labor Statistics (BLS), and the U.S. Census Bureau.

Nashua Housing & Utilities Allowance vs. HUD Fair Market Rent

For taxpayers in the Nashua, New Hampshire HUD Metro FMR Area, specific IRS Local Standards for Housing & Utilities are not published (listed as $N/A). In such cases, the IRS generally allows actual, reasonable housing and utility expenses. This provides a critical opportunity to demonstrate your actual cost of living. For instance, the Department of Housing and Urban Development (HUD) reports the FY2025 Fair Market Rent (FMR) for a 1-bedroom apartment in this area at $1460.0, and a 2-bedroom at $1920.0. If your actual housing costs exceed what the IRS might informally deem 'reasonable' in the absence of a published standard, you can request a deviation under Internal Revenue Manual (IRM) 5.15.1.10. This is especially relevant if your rent approaches or exceeds the HUD FMR for a 2-bedroom unit at $1920.0. While regional Shelter CPI data for this specific area is not available, the FMR data underscores the high cost of housing in Nashua, strengthening arguments for higher allowable expenses during the collection process.

Food, Healthcare & Transportation Allowances in Nashua

Beyond housing, the IRS allows for essential living expenses. For food, clothing, and other necessities, a single individual in Nashua, NH, is allotted a National Standard of $812 per month, increasing to $1983 for a family of four. This standard is broken down for a single person as $449 for food, $44 for housekeeping supplies, $99 for apparel and services, $45 for personal care products, and $175 for miscellaneous items, all based on Bureau of Labor Statistics Consumer Expenditure Survey data. Healthcare expenses are also standardized: $75 per month for individuals under 65 and $153 per month for those 65 and over, derived from the Medical Expenditure Panel Survey. For transportation in the Nashua region, IRS Local Standards provide for an ownership cost of $588 for one car, plus an operating cost of $270, totaling $858 per month for one vehicle. For two vehicles, the allowance is $1176 for ownership and $270 for operating, totaling $1446, based on BLS data and American Automobile Association operating costs.

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

Achieving Currently Not Collectible (CNC) status in New Hampshire is a vital relief option for taxpayers facing genuine financial hardship. To qualify, you must demonstrate to the IRS that your allowable monthly expenses meet or exceed your monthly income, leaving no funds available for tax payments. This is primarily assessed through Form 433-A, where your income is meticulously compared against the IRS National and Local Standards. For example, a single filer in Nashua, NH, with a reasonable 1-bedroom rent of $1460.0 (based on HUD FMR), a food/clothing allowance of $812, a healthcare allowance of $75 (under 65), and a transportation allowance of $858 (1 car), would have total allowable expenses of $3205.0. If your income falls below this threshold, the IRS may place your account in CNC status, as outlined in IRM 5.16.1. While in CNC, the IRS will generally cease enforced collection actions, including wage levies (Form 668-W) and bank levies (Form 668-A), and may release existing levies under IRC §6343. Importantly, CNC status does not extend the Collection Statute Expiration Date (CSED) under IRC §6502, which typically limits the IRS to 10 years to collect the debt.

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Frequently Asked Questions

For the Nashua, NH HUD Metro FMR Area in 2025, the IRS Collection Financial Standards do not provide a specific published housing and utilities allowance (it's listed as $N/A). This means the IRS will generally allow your actual, reasonable housing and utility expenses. It's crucial to document these costs thoroughly. For context, the U.S. Department of Housing and Urban Development (HUD) reports the FY2025 Fair Market Rent for a 1-bedroom apartment in Nashua as $1460.0 and a 2-bedroom at $1920.0. If your actual expenses are in line with or exceed these figures, you can present them for consideration. Under IRM 5.15.1.10, you can request a deviation from standard allowances if your specific circumstances warrant it, making your actual housing costs a key factor.
To qualify for Currently Not Collectible (CNC) status in New Hampshire, you must demonstrate to the IRS that you lack the financial capacity to pay your tax debt after covering necessary living expenses. This involves completing and submitting Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals, detailing your income, assets, and monthly expenses. The IRS compares your income against their National and Local Collection Financial Standards. If your total allowable expenses (such as $812 for a single person's food and clothing, $75 for healthcare under 65, and $858 for one car's transportation in Nashua) exceed your monthly income, you may qualify. For example, a single filer with $1460.0 in reasonable rent, plus the aforementioned allowances, totaling $3205.0 in expenses, would qualify if their income is less than this. IRM 5.16.1 outlines the procedures for placing an account in CNC status, which typically stops enforced collection actions.
If the IRS issues a wage levy (Form 668-W, Notice of Levy on Wages, Salary, and Other Income) in Nashua, New Hampshire, the amount they can take is determined by federal law and IRS Publication 1494. The IRS does not follow state wage garnishment limits; rather, it adheres to specific federal exemption tables. For 2025, a single individual with zero dependents has $1096.67 of their monthly wages exempt from levy. A single individual with one dependent has $1680.0 exempt. For a married individual filing jointly with zero dependents, $1096.67 is exempt, while with one dependent, $2286.67 is exempt. Any earnings above these exemption amounts are subject to the levy. It is critical to understand these specific figures as they directly impact your take-home pay when facing an IRS wage levy, which is a significant enforced collection action.
Since the IRS Collection Financial Standards do not publish a specific housing allowance for the Nashua, NH HUD Metro FMR Area (it's $N/A), your actual, reasonable housing expenses are generally allowed. This means if your rent is higher, say $1460.0 for a 1-bedroom or $1920.0 for a 2-bedroom based on HUD Fair Market Rent data for FY2025, you can present these figures to the IRS. If your documented housing costs are deemed reasonable for your household size and local market, they will typically be included in your allowable expenses. Should an IRS Revenue Officer question a higher expense, you can request a deviation from the standard under IRM 5.15.1.10, justifying it with market data and your specific circumstances. This is a crucial aspect of demonstrating economic hardship and can significantly impact your ability to qualify for Collection Due Process relief or Currently Not Collectible status.
The IRS generally has a statutory period of 10 years to collect a tax debt, known as the Collection Statute Expiration Date (CSED). This 10-year period typically begins from the date the tax was assessed, as outlined in Internal Revenue Code (IRC) §6502. However, certain actions can 'toll' or pause this statute, effectively extending the time the IRS has to collect. Examples include filing for bankruptcy, requesting an Offer in Compromise (Form 656), or requesting a Collection Due Process hearing. It's important to note that if your account is placed in Currently Not Collectible (CNC) status, this does not extend the CSED. While CNC status temporarily halts active collection efforts like wage levies (Form 668-W) or bank levies (Form 668-A) due to economic hardship, the 10-year clock continues to run, meaning the debt can expire if the IRS doesn't collect it within that timeframe.

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