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IRS Wage Levy & Hardship in Portsmouth-Rochester, New Hampshire

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

Understanding IRS Collection Standards in Portsmouth-Rochester, NH HUD Metro FMR Area

When the IRS assesses your ability to pay a tax debt, they meticulously review your financial situation using Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals. This form is crucial for determining your disposable income by comparing your gross income against a set of allowable living expenses, known as National and Local Standards. For a single individual in the Portsmouth-Rochester, NH HUD Metro FMR Area, the IRS allows $812 monthly for food, clothing, and other necessities. While specific local housing standards are not published for this region by the IRS, actual necessary housing costs are considered. The objective is to identify if an 'economic hardship' exists, as defined under Internal Revenue Code (IRC) §6343(a)(1)(D), which could warrant a levy release or alternative collection action. These crucial financial standards are derived from authoritative sources like IRS.gov Collection Financial Standards, the Bureau of Labor Statistics (BLS), and the US Census Bureau American Community Survey data, ensuring a data-driven assessment of your financial capacity.

Portsmouth-Rochester, NH Housing & Utilities Allowance vs. HUD Fair Market Rent

In the Portsmouth-Rochester, NH HUD Metro FMR Area, the IRS does not provide a pre-set 'Local Standard' for housing and utilities in its standard tables. Instead, taxpayers are expected to document their actual necessary expenses. This is a critical distinction, as it allows for greater flexibility but also requires thorough substantiation. For context, the HUD Fair Market Rent (FMR) for a 2-bedroom residence in this area is $2500.0 per month, a figure significantly higher than many national averages. If your actual housing costs exceed what the IRS might initially deem reasonable, Internal Revenue Manual (IRM) 5.15.1.10 outlines the process for requesting a 'deviation' from standard allowances. Presenting evidence that your rent, such as $2500.0 for a 2-bedroom, is a necessary and reasonable expense for the Portsmouth-Rochester market, especially when compared to HUD FMR data, can strengthen your argument for a deviation. While regional shelter CPI data is not available for this specific region, the high HUD FMR strongly indicates elevated housing costs.

Food, Healthcare & Transportation Allowances for Portsmouth-Rochester, NH Residents

Beyond housing, the IRS provides specific allowances for other essential living expenses. For food, clothing, and other necessities, the National Standards allow a single individual $812 per month, increasing to $1478 for a two-person household, $1697 for three, and $1983 for a four-person household. These figures are based on the Bureau of Labor Statistics Consumer Expenditure Survey. Healthcare costs are also accounted for, with a National Standard allowance of $75 per person per month for those under 65, and $153 for those 65 and over, derived from the Medical Expenditure Panel Survey. For transportation in the Portsmouth-Rochester, NH region, the IRS Local Standards provide for both ownership and operating costs. For one car, the ownership allowance is $588 per month, and the operating allowance is $270 per month, totaling $858. For two cars, these allowances double to $1176 for ownership and $540 for operating, totaling $1716. These transportation allowances are based on Bureau of Labor Statistics data and American Automobile Association operating costs, reflecting the regional economic realities.

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

Achieving Currently Not Collectible (CNC) status in New Hampshire means the IRS has determined you lack the ability to pay your tax debt without experiencing financial hardship. This crucial determination begins with filing Form 433-A, Collection Information Statement, where you detail all income, assets, and necessary living expenses. The IRS then compares your total income against your total allowable expenses, which include housing (actual necessary expenses, like a 2-bedroom HUD FMR of $2500.0 in Portsmouth-Rochester), food ($812 for a single filer), healthcare ($75 for an individual under 65), and transportation ($858 for one car). If your total allowable expenses equal or exceed your income, you may qualify for CNC. For example, a single filer in Portsmouth-Rochester might claim $2500.0 (housing) + $812 (food) + $75 (healthcare) + $858 (transportation) = $4245.0 in monthly expenses. If their income is at or below this amount, CNC is likely. IRM 5.16.1 outlines the procedures for CNC status, and once granted, any existing IRS levy (such as a wage levy, Form 668-W, or bank levy, Form 668-A) must be released under IRC §6343. It's important to note that CNC status does not forgive the debt; rather, it pauses active collection until your financial situation improves, and it does not extend the Collection Statute Expiration Date (CSED) of 10 years, as defined by IRC §6502.

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Frequently Asked Questions

For the Portsmouth-Rochester, NH HUD Metro FMR Area, the IRS does not publish a fixed housing allowance in its standard Collection Financial Standards tables. Instead, the IRS considers your 'actual necessary expenses' for housing and utilities. This means you must document your real-world costs. For context, the HUD Fair Market Rent (FMR) for a 2-bedroom residence in this area is $2500.0 per month, which can serve as a strong benchmark for what constitutes a reasonable and necessary expense in this market. If your actual rent is at or near this figure, you would submit this amount on your Form 433-A, Collection Information Statement, for IRS review. The IRS may question expenses that appear excessive, but legitimate, market-driven costs are generally allowed under IRM 5.15.1.10.
To qualify for Currently Not Collectible (CNC) status in New Hampshire, you must demonstrate to the IRS that you cannot afford to pay your tax debt without experiencing financial hardship. This process begins by completing and submitting Form 433-A, Collection Information Statement, detailing all your income, assets, and monthly necessary living expenses. The IRS will compare your income against their allowable expenses, which include National Standards for food, clothing, and other items (e.g., $812 for a single person), National Standards for out-of-pocket healthcare (e.g., $75 per month for those under 65), and Local Standards for transportation (e.g., $858 for one car in the Portsmouth-Rochester region). For housing, you'll report your actual necessary costs, such as the $2500.0 HUD FMR for a 2-bedroom residence. If your total allowable expenses meet or exceed your monthly income, the IRS may place your account in CNC status, as outlined in IRM 5.16.1. This stops active collection, including any existing levies under IRC §6343, until your financial situation improves.
When the IRS issues a wage levy (Form 668-W) in Portsmouth-Rochester, NH, they are legally limited in the amount they can seize from your paycheck. The exempt amount is determined by your filing status and the number of dependents you claim. According to IRS Publication 1494 for 2025, a single individual claiming zero dependents is exempt from levy on $1096.67 of their monthly wages. If that same single individual claims one dependent, their exempt amount increases to $1680.0 per month. For a married individual filing jointly with zero dependents, the exempt amount is also $1096.67 monthly, increasing to $2286.67 with one dependent. Any income above these specific exempt amounts is subject to the levy. New Hampshire generally follows federal wage garnishment limits, which means the IRS levy calculation typically supersedes other state-specific rules, as federal law (IRC §6331) governs IRS collection actions.
If your rent in the Portsmouth-Rochester, NH HUD Metro FMR Area exceeds the IRS's unstated or assumed housing allowance, you have the right to request a 'deviation' from the standard allowances. Since the IRS does not provide a specific housing standard for this region in its general tables, you are expected to report your actual necessary housing expenses on Form 433-A. For instance, if your 2-bedroom rent is $2500.0, which aligns with the HUD Fair Market Rent for the area, you would document this. IRM 5.15.1.10 explicitly allows for deviations where a taxpayer's actual necessary expenses are higher than the published standards. You must be prepared to substantiate that your housing costs are reasonable and essential for your household in the Portsmouth-Rochester market. Providing documentation like your lease agreement and demonstrating that comparable housing in your area costs a similar amount (e.g., referencing HUD FMR data) can significantly strengthen your deviation request and help prevent an IRS levy.
The IRS generally has a 10-year period to collect a tax debt, known as the Collection Statute Expiration Date (CSED). This 10-year clock typically begins from the date the tax was assessed, as defined under Internal Revenue Code (IRC) §6502. It's crucial to understand that certain actions can 'toll' or pause this 10-year period, effectively extending the time the IRS has to collect. Examples include periods when you have an Offer in Compromise (Form 656) pending, are in bankruptcy, or are outside the U.S. for an extended time. While being placed in Currently Not Collectible (CNC) status (IRM 5.16.1) pauses active collection efforts, it generally does not pause the CSED. This means that if you remain in CNC status for the full 10-year period, the debt may expire without being collected. Understanding your CSED is a critical strategy in managing IRS tax debt and exploring options like CNC status or an Offer in Compromise.

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