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Roberts County, South Dakota: Navigating IRS Wage Levy & Hardship Status

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

Understanding IRS Collection Standards in Roberts County

Taxpayers in Roberts County, South Dakota, facing IRS collection actions such as wage levies (Form 668-W) or bank levies (Form 668-A) must understand the IRS Collection Financial Standards. These standards are critical for determining a taxpayer's ability to pay and are meticulously documented on Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals. The IRS calculates a taxpayer's disposable income by subtracting allowable living expenses, derived from both National and Local Standards, from their gross income. For a single individual in Roberts County, the National Standard allowance for food is $449, totaling $812 for food, clothing, and other necessary expenses. While specific IRS Local Housing & Utilities Standards are not applicable for Roberts County, the IRS does use detailed National Standards for essential categories. The ability to meet these basic living expenses is central to establishing economic hardship under IRC §6343(a)(1)(D), potentially leading to a levy release. This data is rigorously compiled from official sources including IRS.gov Collection Financial Standards, the Bureau of Labor Statistics (BLS), and the U.S. Census Bureau.

Roberts County Housing & Utilities Allowance vs. HUD Fair Market Rent

For Roberts County, South Dakota, the IRS Collection Financial Standards do not provide a specific local allowance for Housing & Utilities (listed as $N/A). In such cases, or when the IRS standard is insufficient, the IRS may consider a taxpayer's actual necessary expenses. The U.S. Department of Housing and Urban Development (HUD) provides Fair Market Rent (FMR) data, which can serve as a vital benchmark. For instance, the HUD FY2025 Fair Market Rent for a 2-bedroom residence in Roberts County is $1320.0 per month. If a taxpayer's actual housing costs align with or exceed this figure, it strengthens the argument for a deviation from standard allowances, as outlined in Internal Revenue Manual (IRM) 5.15.1.10. This deviation process allows the IRS to approve expenses higher than the published standards if the taxpayer can substantiate their necessity and reasonableness. Unfortunately, regional Shelter CPI data for Roberts County is not available from the Bureau of Labor Statistics, which could otherwise provide additional context for housing cost trends.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS applies National and Local Standards for other critical living expenses. The IRS National Standards for Food, Clothing, and Other Necessary Expenses, 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. Each additional person beyond four adds $357. Healthcare expenses are covered by the IRS National Standards for Out-of-Pocket Healthcare, allowing $75 per person per month for individuals under 65 and $153 for those 65 and over, based on Medical Expenditure Panel Survey data. For transportation in Roberts County, the IRS Local Standards, based on BLS data and American Automobile Association operating costs, allocate $588 per month for the ownership of one car and an additional $270 per month for operating costs in this region. This results in a total allowable transportation expense of $858 per month for one vehicle, or $1446 for two vehicles, encompassing both ownership and operating costs.

Qualifying for Currently Not Collectible (CNC) Status in South Dakota

Achieving Currently Not Collectible (CNC) status in South Dakota is a crucial relief option for taxpayers in Roberts County who cannot afford to pay their tax debt. To qualify, taxpayers must demonstrate to the IRS that their allowable monthly expenses meet or exceed their monthly income, leaving no disposable income for tax payments. This process typically begins with the submission of IRS Form 433-A, Collection Information Statement. For a single filer in Roberts County, this might involve allowable expenses such as the HUD Fair Market Rent for a 2-bedroom home at $1320.0, plus $812 for food, clothing, and other expenses, $75 for healthcare (under 65), and $858 for transportation, totaling $3265.0. If their income is less than or equal to this total, CNC status may be granted. IRM 5.16.1 outlines the specific procedures for CNC classification, which results in the IRS ceasing collection activity and releasing existing levies under IRC §6343. Importantly, while CNC offers immediate relief, it does not erase the tax debt and does not extend the Collection Statute Expiration Date (CSED) under IRC §6502, which generally limits the IRS to 10 years for collection.

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Frequently Asked Questions

For Roberts County, South Dakota, the IRS Collection Financial Standards currently list the Local Housing & Utilities allowance as $N/A. This means the IRS does not provide a pre-set standard for this specific county. However, the U.S. Department of Housing and Urban Development (HUD) provides Fair Market Rent (FMR) data, which the IRS often considers when local standards are unavailable or insufficient. For FY2025, the HUD FMR for a 2-bedroom residence in Roberts County is $1320.0 per month. Taxpayers can claim their actual, necessary housing expenses, and if these exceed a reasonable amount or are higher than other available benchmarks, they may need to substantiate them under IRM 5.15.1.10. This requires providing detailed documentation to the IRS to justify the higher expense.
To qualify for Currently Not Collectible (CNC) status in South Dakota, you must demonstrate to the IRS that you lack the financial ability to pay your tax debt. This process involves submitting IRS Form 433-A, Collection Information Statement, detailing your income, assets, and monthly expenses. The IRS will compare your total allowable monthly expenses against your income. For example, a single individual in Roberts County might have allowable expenses including $1320.0 for housing (based on HUD FMR), $812 for food, clothing, and other items, $75 for healthcare (under 65), and $858 for transportation. If your total income is less than or equal to these combined expenses ($3265.0 in this example), you may qualify for CNC status. IRM 5.16.1 outlines the specific criteria and procedures for granting CNC status, which pauses active collection efforts.
When the IRS issues a wage levy (Form 668-W) in Roberts County, South Dakota, they are legally limited in the amount they can seize from your paycheck. The exact amount exempt from levy is determined by your filing status and the number of dependents you claim, as outlined in IRS Publication 1494. For 2025, a single taxpayer with zero dependents has a monthly exempt amount of $1096.67. A single taxpayer with one dependent can protect $1680.0 per month. For those married filing jointly with one dependent, the exempt amount rises to $2286.67. Only income exceeding these thresholds can be levied. The state of South Dakota follows federal Consumer Credit Protection Act (CCPA) limits, which typically mean the IRS cannot take 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. However, IRS levies often take precedence and use their specific exemption tables.
If your rent in Roberts County, South Dakota, exceeds the IRS's standard, it's crucial to understand that for this specific county, the IRS Local Housing & Utilities Standard is currently listed as $N/A. This means there isn't a fixed IRS limit you are automatically exceeding. Instead, the IRS will evaluate your actual, necessary living expenses. The HUD FY2025 Fair Market Rent for a 2-bedroom unit in Roberts County is $1320.0, which can serve as a reasonable benchmark. If your rent is above this, you must provide thorough documentation to the IRS to justify these higher costs. Under IRM 5.15.1.10, taxpayers can request a deviation from standard allowances if their actual expenses are necessary and reasonable. Providing lease agreements, utility bills, and a clear explanation of why your housing costs are higher than average can significantly strengthen your argument for allowing the full expense.
The IRS generally has 10 years to collect a tax debt, a period known as the Collection Statute Expiration Date (CSED). This 10-year clock typically begins from the date the tax was assessed. This rule is established under Internal Revenue Code (IRC) §6502. It's important to note that certain actions can 'toll' or pause this 10-year period, effectively extending the time the IRS has to collect. These actions include filing for bankruptcy, submitting an Offer in Compromise (Form 656), requesting a Collection Due Process (CDP) hearing, or living outside the U.S. for an extended period. While obtaining Currently Not Collectible (CNC) status provides immediate relief from collection efforts, it does not extend the CSED. Therefore, pursuing CNC status can be a strategic move to run out the collection statute without making payments, provided the CSED is not tolled by other actions.

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