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IRS Wage Levy & Hardship Assistance in New Orleans-Metairie, Louisiana

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

Understanding IRS Collection Standards in New Orleans-Metairie, LA HUD Metro FMR Area

When facing IRS collection actions in the New Orleans-Metairie, LA HUD Metro FMR Area, understanding the IRS's Collection Financial Standards is crucial for protecting your financial stability. The IRS uses these detailed standards, outlined on Form 433-A (Collection Information Statement for Wage Earners and Self-Employed Individuals), to calculate your disposable income and determine your ability to pay. These standards are derived from comprehensive data provided by IRS.gov, the Bureau of Labor Statistics (BLS), and the US Census Bureau. For instance, the National Standard for Food for a single individual is $812 per month, a non-negotiable allowance. While specific local housing standards for New Orleans-Metairie, LA are not provided by the IRS, taxpayers can still claim actual, necessary expenses. If your allowable expenses exceed your income, the IRS may determine you are experiencing economic hardship, a condition recognized under Internal Revenue Code (IRC) §6343(a)(1)(D), which can lead to levy release or Currently Not Collectible (CNC) status.

New Orleans-Metairie, LA Housing & Utilities Allowance vs. HUD Fair Market Rent

For residents in the New Orleans-Metairie, LA HUD Metro FMR Area, the IRS Collection Financial Standards do not provide a specific pre-set monthly allowance for Housing & Utilities. This 'N/A' status for all household sizes means the IRS does not have a default figure for this region. However, this absence does not prevent taxpayers from claiming their actual, necessary housing costs. Instead, the IRS will evaluate your actual expenses, often referencing local data such as the Department of Housing & Urban Development (HUD) Fair Market Rent (FMR). For example, the FY2025 HUD FMR for a 2-bedroom unit in this area is $1390.0 per month. If your legitimate rent and utilities exceed what the IRS might typically allow or if a standard isn't provided, you can request a deviation from the standard. Internal Revenue Manual (IRM) 5.15.1.10 outlines the process for granting such deviations for necessary expenses. While regional Shelter CPI data for this specific area is not available from the Bureau of Labor Statistics, justifying actual housing costs above a non-existent IRS standard is often strengthened by demonstrating that your rent aligns with local FMR data, like the $1390.0 for a 2BR.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS allows for other essential living expenses based on National and Local Standards. For Food, Clothing & Other, the National Standards, derived from the Bureau of Labor Statistics Consumer Expenditure Survey, provide a monthly allowance ranging from $812 for a 1-person household to $1983 for a 4-person household, with an additional $357 per person for larger families. Out-of-Pocket Healthcare allowances, based on the Medical Expenditure Panel Survey, are $75 per person monthly for those under 65 and $153 for those 65 and over. Transportation allowances for the New Orleans-Metairie, LA region are also defined by Local Standards, which combine ownership and operating costs derived from BLS data and American Automobile Association (AAA) operating costs. For one car, the ownership cost is $588 per month, and the operating cost is $270 per month, totaling $858. For two cars, the total allowance is $1446 per month, ensuring taxpayers can maintain essential transportation for work and daily living.

Qualifying for Currently Not Collectible (CNC) Status in Louisiana

Achieving Currently Not Collectible (CNC) status is a critical relief option for taxpayers in Louisiana facing severe financial hardship. To qualify, you must demonstrate to the IRS that your allowable living expenses meet or exceed your monthly income, leaving no funds available for tax debt payment. This process begins with filing an accurate Form 433-A, detailing your income, assets, and expenses. For example, a single filer in New Orleans-Metairie, LA could claim an allowance for housing (e.g., $1390.0 based on 2BR HUD FMR, requiring a deviation), food ($812), healthcare ($75 for under 65), and transportation ($858 for one car), totaling $3135.0 in monthly expenses. If your net monthly income is less than this total, you may qualify for CNC. IRM 5.16.1 outlines the procedures for placing accounts into CNC status, leading to the release of any existing levies under IRC §6343. Importantly, while in CNC status, the IRS generally stops collection efforts, but the 10-year Collection Statute Expiration Date (CSED) under IRC §6502 continues to run, meaning CNC does not extend the time the IRS has to collect the debt.

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Frequently Asked Questions

The IRS Collection Financial Standards for 2025 do not provide a specific, pre-determined housing allowance for the New Orleans-Metairie, LA HUD Metro FMR Area; it is listed as 'N/A' for all household sizes. However, this does not mean you cannot claim legitimate housing expenses. Instead, the IRS will evaluate your actual, reasonable housing costs. Taxpayers in this region can substantiate their expenses by referencing local data, such as the HUD Fair Market Rent (FMR). For instance, the FY2025 HUD FMR for a 2-bedroom unit in the New Orleans-Metairie, LA area is $1390.0 per month. If your actual housing costs align with or are justified against these local FMR figures, you can request a deviation from the non-existent standard under IRM 5.15.1.10, ensuring your necessary housing expenses are considered in your ability to pay.
To qualify for Currently Not Collectible (CNC) status in Louisiana, you must demonstrate to the IRS that you lack the financial ability to pay your tax debt due to a genuine economic hardship. This involves preparing and submitting a detailed Form 433-A, Collection Information Statement, which comprehensively outlines your income, assets, and all necessary monthly living expenses. The IRS will compare your total allowable expenses against your net monthly income using their National and Local Collection Financial Standards. If your income does not exceed your allowable expenses, you may be granted CNC status. For example, a single person in New Orleans-Metairie, LA with $1390.0 for housing (via deviation), $812 for food, $75 for healthcare, and $858 for transportation, totaling $3135.0 in expenses, would qualify if their income is less than this amount. IRM 5.16.1 provides the specific procedures the IRS follows for processing CNC requests, which can lead to the release of levies under IRC §6343.
When the IRS issues a wage levy (Form 668-W) in New Orleans-Metairie, LA, the amount they can take from your paycheck is determined by IRS Publication 1494. This publication outlines specific exemption amounts that protect a portion of your wages from levy, ensuring you retain enough for basic living expenses. For 2025, a single individual with zero dependents has a monthly exemption of $1096.67. A single individual with one dependent has an exemption of $1680.0 per month. For those married filing jointly, the exemption is $1096.67 with zero dependents, increasing to $2286.67 with one dependent. Any disposable earnings (gross pay minus mandatory deductions like federal/state taxes, FICA) above these exemption amounts can be levied. State wage garnishment laws in Louisiana typically defer to these federal limits, specifically the Consumer Credit Protection Act (CCPA), which limits garnishment to 25% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum wage, whichever is less. The IRS's levy calculation usually results in a higher protected amount than standard garnishments.
If your rent in New Orleans-Metairie, LA exceeds the IRS standard, you are not necessarily out of options. As the IRS Collection Financial Standards for this area list Housing & Utilities as 'N/A,' there is no pre-set standard to exceed. This means the IRS will consider your actual, necessary housing expenses. You must be prepared to substantiate these costs with documentation, such as lease agreements and utility bills. Referencing local data, like the HUD Fair Market Rent (FMR), can significantly support your claim. For instance, the FY2025 HUD FMR for a 2-bedroom unit in the New Orleans-Metairie, LA HUD Metro FMR Area is $1390.0 per month. If your rent is $1500.0, you would argue that this is a reasonable and necessary expense in your local market. Internal Revenue Manual (IRM) 5.15.1.10 provides the framework for requesting a deviation from established standards or claiming actual necessary expenses when a standard is not provided, allowing the IRS to consider higher, legitimate costs that are essential for your health and welfare.
The IRS generally has 10 years to collect a tax debt, a period known as the Collection Statute Expiration Date (CSED). This 10-year window is established by Internal Revenue Code (IRC) §6502 and typically begins from the date the tax was assessed. It's crucial for taxpayers in Louisiana to understand that various actions can pause or 'toll' the CSED, effectively extending the collection period. These actions include requesting a Collection Due Process (CDP) hearing, filing for bankruptcy, or submitting an Offer in Compromise (Form 656). However, being placed in Currently Not Collectible (CNC) status, as outlined in IRM 5.16.1, does *not* typically extend the CSED. While in CNC, collection efforts cease, but the 10-year clock continues to run. This makes CNC status a strategic option for taxpayers experiencing hardship, as it provides relief from active collection while moving closer to the expiration of the IRS's collection authority, potentially leading to the debt being discharged if it remains unpaid by the CSED.

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