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IRS Wage Levy & Hardship Assistance for Richmond County, Virginia Taxpayers

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

Understanding IRS Collection Standards in Richmond County, VA

Navigating IRS enforced collection in Richmond County, Virginia requires a precise understanding of the Collection Financial Standards. When the IRS evaluates your ability to pay, they require a comprehensive financial statement, typically submitted on Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals. This form details your income, expenses, and assets, allowing the IRS to calculate your disposable income. The IRS uses a combination of National and Local Standards to determine reasonable living expenses. For a single individual in Richmond County, the National Standards allow $812 for food, clothing, and other necessities, with food specifically allocated $449. These standards are derived from data provided by the Bureau of Labor Statistics (BLS) Consumer Expenditure Survey and the US Census Bureau. If your allowable expenses, including these standards, exceed your income, you may qualify for collection alternatives or even economic hardship status under Internal Revenue Code (IRC) §6343(a)(1)(D), which mandates the release of a levy if it creates an economic hardship.

Richmond County, VA Housing & Utilities Allowance vs. HUD Fair Market Rent

For Richmond County, Virginia, the IRS Collection Financial Standards currently list Housing and Utilities allowances as 'N/A' for all household sizes on IRS.gov. This critical absence means the IRS will evaluate your actual housing and utility expenses for Richmond County, VA. Taxpayers must substantiate these costs, and the IRS often references local rental market data. For instance, the US Department of Housing and Urban Development (HUD) FY2025 Fair Market Rent (FMR) data indicates a 2-bedroom unit in Richmond County, VA, has an FMR of $1240.0 per month, while a 1-bedroom is $950.0. If your actual, necessary housing expenses exceed what the IRS might typically allow or what is listed in a standard, Internal Revenue Manual (IRM) 5.15.1.10 allows for a deviation from the published standards. This is particularly relevant when local housing costs, such as the $1240.0 for a 2BR, significantly exceed a hypothetical 'N/A' standard, strengthening an argument for higher allowable expenses. Unfortunately, specific regional shelter CPI (Consumer Price Index) data from the Bureau of Labor Statistics for this region is not available to provide a year-over-year comparison.

Food, Healthcare & Transportation Allowances in Richmond County, VA

Beyond housing, the IRS provides specific allowances for other essential living expenses. For food, clothing, and other necessities, the National Standards dictate a monthly allowance of $812 for a single person, escalating to $1983 for a four-person household. This data is based on the Bureau of Labor Statistics Consumer Expenditure Survey. Healthcare is another critical component; the IRS permits a monthly out-of-pocket healthcare expense of $75 per person under 65 and $153 per person 65 and over, derived from the Medical Expenditure Panel Survey. For transportation in Richmond County, VA, the IRS Local Standards, based on BLS data and American Automobile Association (AAA) operating costs, permit $588 for the ownership cost of one vehicle and an additional $270 for operating costs, totaling $858 per month for one car. These precise figures are vital when calculating your ability to pay and negotiating a collection alternative with the IRS.

Qualifying for Currently Not Collectible (CNC) Status in Virginia

Achieving Currently Not Collectible (CNC) status in Virginia means the IRS has determined you lack the financial ability to pay your tax debt due to economic hardship. To qualify, you must file a comprehensive Form 433-A, detailing your income and all allowable expenses. The IRS will compare your total monthly income against your total allowable expenses, which include the National and Local Standards for Richmond County, VA, along with your actual, necessary housing costs. For a single filer in Richmond County, allowable expenses might include $950.0 for a 1-bedroom (based on HUD FMR, as IRS housing standards are 'N/A'), $812 for food/clothing/other, $75 for healthcare (under 65), and $858 for one vehicle's transportation costs, totaling $2695.0. If your income does not exceed this total, you could qualify for CNC status under IRM 5.16.1, which instructs IRS Collection personnel on CNC procedures. While in CNC status, the IRS will generally cease enforced collection actions like wage levies (Form 668-W) or bank levies (Form 668-A), as outlined in IRC §6343. Importantly, CNC status does not extend the Collection Statute Expiration Date (CSED), which is typically 10 years from the assessment date under IRC §6502, allowing the debt to expire if not paid within that timeframe.

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Frequently Asked Questions

For Richmond County, Virginia, the IRS Collection Financial Standards for Housing and Utilities are currently designated as 'N/A' on IRS.gov for all household sizes. This means the IRS will not apply a pre-determined standard but instead will assess your actual, necessary housing expenses. When submitting Form 433-A, you must provide documentation for your rent or mortgage payments, property taxes, and utilities. The IRS may reference local market data, such as the HUD FY2025 Fair Market Rent, which indicates a 2-bedroom unit in Richmond County has an FMR of $1240.0 per month. If your actual housing costs are reasonable and necessary, they will be allowed. If they exceed what the IRS might deem typical, you can request a deviation under IRM 5.15.1.10, substantiating why higher expenses are necessary.
To qualify for Currently Not Collectible (CNC) status in Virginia, you must demonstrate to the IRS that you lack the financial ability to pay your tax debt. This process begins by submitting a complete Form 433-A, Collection Information Statement, detailing all your income, assets, and necessary monthly expenses. The IRS will compare your gross monthly income against your allowable expenses, which include National Standards for categories like food ($812 for a single person) and Local Standards for transportation ($858 for one car in Richmond County, VA), along with your actual, necessary housing and utility costs (as IRS housing standards are 'N/A' for Richmond County). If your total allowable expenses equal or exceed your income, the IRS may place your account in CNC status. This temporarily halts enforced collection actions like levies, as specified in IRC §6343, but the tax debt remains owed and interest/penalties continue to accrue. This status is reviewed periodically, typically every 1-2 years, to ensure your financial situation has not improved.
When the IRS issues a wage levy (Form 668-W, Notice of Levy on Wages, Salary, and Other Income) in Richmond County, Virginia, they are legally limited in the amount they can seize from your paycheck. The amount exempt from the levy is calculated using a table provided in IRS Publication 1494, 'Table for Figuring Amount Exempt from Levy.' For example, a single taxpayer with zero dependents in 2025 is exempt from levy on $1096.67 of their monthly wages, while a single taxpayer with one dependent is exempt on $1680.0. Any amount above this exemption is subject to the levy. Unlike state wage garnishments, which often follow the Consumer Credit Protection Act (CCPA) limits (25% of disposable earnings or the amount above 30 times the federal minimum wage), IRS levies are determined by specific dependency-based exemptions. It is crucial to understand these figures, as an improperly calculated levy can cause severe financial hardship, potentially allowing you to seek a levy release under IRC §6343.
Since the IRS Collection Financial Standards for Housing and Utilities are 'N/A' for Richmond County, Virginia, your actual, necessary rent and utility expenses are used when determining your ability to pay. This means there isn't a specific IRS standard you must adhere to. However, the IRS expects these expenses to be reasonable. For reference, the HUD FY2025 Fair Market Rent for a 2-bedroom unit in Richmond County is $1240.0. If your rent is higher than typical for the area, you must be prepared to justify it as a necessary expense. Internal Revenue Manual (IRM) 5.15.1.10, 'Allowable Expenses – Deviation from National and Local Standards,' specifically addresses situations where a taxpayer's actual expenses exceed the published standards or, in this case, are higher than what the IRS might otherwise typically allow. By providing thorough documentation and a clear explanation for your housing costs, you can advocate for the full inclusion of your rent in your allowable expenses.
The IRS generally has 10 years to collect a tax debt, a period known as the Collection Statute Expiration Date (CSED), established by Internal Revenue Code (IRC) §6502. This 10-year period typically begins from the date the tax was assessed. However, certain actions can 'toll' or pause this statute, effectively extending the time the IRS has to collect. For instance, an Offer in Compromise (OIC) submission, filing for bankruptcy, or living outside the U.S. for an extended period can all pause the CSED. While being placed in Currently Not Collectible (CNC) status (IRM 5.16.1) temporarily stops active collection efforts like wage levies (Form 668-W) or bank levies (Form 668-A), it does not extend the CSED. This means the 10-year clock continues to run while your account is in CNC, which can be a strategic advantage for taxpayers facing significant financial hardship in Richmond County, VA, allowing the debt to potentially expire if their financial situation does not improve within the remaining CSED.

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