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North Slope Borough, Alaska IRS Wage Levy & Hardship Relief

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

Understanding IRS Collection Standards in North Slope Borough, AK

Navigating IRS collection actions in North Slope Borough, Alaska, requires a precise understanding of the Internal Revenue Service's financial standards. When evaluating a taxpayer's ability to pay, the IRS utilizes Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals, to calculate disposable income. This calculation relies on National and Local Standards, derived from comprehensive data sources including IRS.gov Collection Financial Standards, the Bureau of Labor Statistics (BLS), and the US Census Bureau. For instance, the National Standard for a single person's food allowance is $812 per month. While specific IRS Local Housing and Utilities Standards are not provided for North Slope Borough, the IRS does recognize the need to consider actual necessary expenses, especially in high-cost areas. If a taxpayer's allowable expenses exceed their income, it can demonstrate economic hardship, a critical factor under IRC §6343(a)(1)(D) for levy release or collection alternatives.

North Slope Borough, AK Housing & Utilities Allowance vs. HUD Fair Market Rent

For residents of North Slope Borough, Alaska, it is critical to note that the IRS Collection Financial Standards currently list 'N/A' for all household sizes under the Local Housing and Utilities category. This absence means the IRS does not have a pre-determined maximum allowable housing expense for this specific region. In such cases, taxpayers must substantiate their actual necessary housing expenses. For comparison, the Department of Housing and Urban Development (HUD) reports the FY2025 Fair Market Rent (FMR) for North Slope Borough as $1240.0 for a 1-bedroom unit and $1630.0 for a 2-bedroom unit. If your actual housing costs exceed what the IRS might typically allow in other areas, you can request a deviation from the standard per Internal Revenue Manual (IRM) 5.15.1.10. This significantly strengthens your argument for economic hardship. While regional Shelter CPI data is not available for this specific region from the Bureau of Labor Statistics, documenting your actual rent, which may align with or exceed HUD FMRs, is crucial.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS provides National Standards for essential living expenses. For food, clothing, and other necessities, a single person in North Slope Borough, AK, is allowed $812 monthly, increasing to $1983 for a family of four. These figures are based on the Bureau of Labor Statistics Consumer Expenditure Survey. Healthcare costs are also standardized: individuals under 65 are allowed $75 per month, while those 65 and over are allowed $153 per month, derived from the Medical Expenditure Panel Survey. Transportation standards for North Slope Borough, AK, permit an allowance for vehicle ownership and operating costs. For one car, the ownership cost is $588 per month, with an additional $270 for operating expenses (for the region), totaling $858 per month. For two cars, the total allowance is $1176 for ownership and $270 for operating costs, totaling $1446 per month. These figures are based on BLS data and American Automobile Association operating costs, reflecting the necessary expenses for maintaining employment and household needs.

Qualifying for Currently Not Collectible (CNC) Status in Alaska

For taxpayers in North Slope Borough, Alaska, who cannot meet basic living expenses while also paying their tax debt, Currently Not Collectible (CNC) status offers crucial relief. To qualify, you must demonstrate to the IRS that your allowable monthly expenses equal or exceed your monthly income, leaving no funds available for tax payments. This is primarily established by submitting a Form 433-A, Collection Information Statement. For example, a single filer facing collection in North Slope Borough might have allowable expenses including $1240.0 for a 1-bedroom apartment (per HUD FMR), $812 for food, $75 for healthcare (under 65), and $858 for one-car transportation, totaling $2985.0. If their net monthly income is less than or equal to this amount, they may qualify for CNC. IRM 5.16.1 outlines the procedures for determining CNC status, which can lead to the release of an existing levy under IRC §6343. It's important to understand that while CNC status temporarily halts active collection, it does not erase the debt. The IRS's 10-year collection statute of limitations (CSED) under IRC §6502 continues to run during CNC status, meaning the debt will eventually expire if not paid within that timeframe.

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Frequently Asked Questions

For North Slope Borough, Alaska, the IRS Collection Financial Standards for Housing and Utilities are currently listed as 'N/A' for all household sizes. This means there isn't a pre-set maximum amount the IRS will automatically allow. Instead, the IRS will consider your actual, reasonable, and necessary housing expenses. For context, the HUD FY2025 Fair Market Rent (FMR) for North Slope Borough is $1120.0 for a studio, $1240.0 for a 1-bedroom, and $1630.0 for a 2-bedroom unit. If your rent aligns with or exceeds these figures, you can present this evidence to the IRS. Under IRM 5.15.1.10, taxpayers can request a deviation from standard allowances if their actual necessary expenses are higher, using these HUD FMR figures to support their case. This approach is critical for demonstrating economic hardship when facing IRS collection actions.
To qualify for Currently Not Collectible (CNC) status in Alaska, you must demonstrate to the IRS that you lack the financial ability to pay your tax debt while meeting your essential living expenses. This process begins by accurately completing and submitting IRS Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals. The IRS will compare your total monthly income against your total allowable monthly expenses, using National and Local Standards. For example, a single filer's allowable expenses could include $812 for food, clothing, and other items, $75 for healthcare (if under 65), and $858 for one-car transportation. If your total necessary expenses, including a reasonable housing amount (such as the HUD FMR of $1240.0 for a 1-bedroom in North Slope Borough), leave you with no disposable income to apply to your tax debt, you may qualify for CNC status under IRM 5.16.1. If granted, this status can lead to the release of a levy under IRC §6343(a)(1)(D).
When the IRS issues a wage levy (Form 668-W, Notice of Levy on Wages, Salary, and Other Income) in North Slope Borough, Alaska, a portion of your earnings is exempt from the levy. The exact amount exempt depends on your filing status and the number of dependents you claim, as detailed in IRS Publication 1494 for 2025. For a single filer with zero dependents, $1096.67 per month is exempt. For a single filer with one dependent, this increases to $1680.0 per month. A married couple filing jointly with one dependent can claim an exemption of $2286.67 per month. Any amount of disposable earnings above these thresholds is subject to the levy. Alaska follows federal Consumer Credit Protection Act (CCPA) limits, meaning the IRS cannot levy more than 25% of your disposable earnings or the amount by which your disposable earnings exceed 30 times the federal minimum wage, whichever is less. Understanding these specific exemption amounts is crucial for taxpayers facing a wage levy.
Given that the IRS Collection Financial Standards for Housing and Utilities are 'N/A' for North Slope Borough, AK, your actual rent will be the primary factor considered. For example, if your rent for a 2-bedroom unit is $1630.0, which aligns with the HUD FY2025 Fair Market Rent, you would present this as your necessary housing expense. If your rent exceeds what the IRS might typically allow in other regions, you absolutely have grounds to request a deviation from the standard. IRM 5.15.1.10 explicitly allows for such deviations when a taxpayer can substantiate higher necessary expenses. Providing documentation for your actual, reasonable rent is vital to demonstrate that you do not have disposable income to pay your tax liability, thereby supporting a claim of economic hardship under IRC §6343(a)(1)(D) and potentially securing a levy release or an Offer in Compromise. While regional Shelter CPI data is not available, your documented rent is a powerful piece of evidence.
The IRS generally has 10 years to collect a tax debt, a period known as the Collection Statute Expiration Date (CSED), as mandated by IRC §6502. This 10-year clock typically starts from the date your tax was assessed. It's crucial to understand that certain actions can pause or extend this period. For example, filing for bankruptcy, requesting an Offer in Compromise (Form 656), or living outside the U.S. for an extended period can all suspend the CSED. However, qualifying for Currently Not Collectible (CNC) status under IRM 5.16.1 does NOT extend the CSED; the 10-year clock continues to run while your account is in CNC status. This makes CNC a strategic option for taxpayers in North Slope Borough, Alaska, allowing them to weather a financial hardship while the collection period continues to expire, potentially leading to the debt becoming uncollectible after 10 years.

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