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San Juan County, Utah IRS Wage Levy & Hardship Relief

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

Understanding IRS Collection Standards in San Juan County

For taxpayers in San Juan County, Utah facing IRS enforced collection, understanding the IRS's Collection Financial Standards is crucial. The IRS utilizes these standards, detailed on Form 433-A, 'Collection Information Statement for Wage Earners and Self-Employed Individuals,' to determine a taxpayer's ability to pay. Disposable income is calculated by subtracting allowable National and Local Standards from gross income. For a single individual in San Juan County, the National Standard for Food, Clothing, and Other necessities is $812 per month, which includes $449 for food, $44 for housekeeping, $99 for apparel, $45 for personal care, and $175 for miscellaneous expenses. It's important to note that specific IRS Local Housing & Utilities Standards for San Juan County, UT are currently listed as N/A. In such cases, the IRS will generally allow actual, reasonable expenses. The ability to pay is central to avoiding or releasing enforced collection actions like wage levies (Form 668-W) or bank levies (Form 668-A), under the economic hardship provisions of Internal Revenue Code (IRC) §6343(a)(1)(D). These standards are derived from authoritative sources like IRS.gov, Bureau of Labor Statistics (BLS) Consumer Expenditure Survey, and US Census Bureau American Community Survey data.

San Juan County Housing & Utilities Allowance vs. HUD Fair Market Rent

Navigating housing expenses in San Juan County, Utah, within the IRS collection framework presents a unique situation. The IRS Collection Financial Standards do not provide a specific Local Standard for Housing & Utilities for any household size in San Juan County, UT, listing them as $N/A. This means taxpayers are generally allowed their actual, reasonable housing and utility expenses. To provide a benchmark for reasonableness, the U.S. Department of Housing and Urban Development (HUD) Fair Market Rent (FMR) for San Juan County, UT, for FY2025 lists a 2-bedroom unit at $1580.0 per month. If a taxpayer's actual housing expenses exceed what the IRS might typically allow in areas with published standards, Internal Revenue Manual (IRM) 5.15.1.10 permits a deviation from the established standards when justified by the facts and circumstances. In San Juan County, since no specific IRS standard exists, demonstrating the reasonableness of actual expenses, potentially supported by HUD FMR data, becomes key. While regional Shelter CPI (YoY) data is not available for this specific region, the HUD FMR provides a clear picture of market realities.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS Collection Financial Standards provide specific allowances for essential living expenses in San Juan County, Utah. For food, clothing, and other necessities, the National Standards range from $812 per month for a single individual to $1983 for a four-person household, with an additional $357 for each extra person. These figures are based on the Bureau of Labor Statistics Consumer Expenditure Survey. Healthcare costs are also accounted for, with a monthly allowance of $75 per person under 65 years old and $153 per person for those 65 and over, as derived from the Medical Expenditure Panel Survey. For transportation, the IRS Local Standards for San Juan County, UT, provide $588 per month for the ownership costs of one car and $270 per month for operating costs, totaling $858. For a two-car household, ownership costs are $1176, making the total transportation allowance $1446 ($1176 ownership + $270 operating). These transportation figures are based on Bureau of Labor Statistics data and American Automobile Association operating costs, acknowledging the necessity of reliable transport in rural Utah.

Qualifying for Currently Not Collectible (CNC) Status in Utah

Achieving Currently Not Collectible (CNC) status can provide crucial relief for taxpayers in San Juan County, Utah, experiencing severe financial hardship. To qualify, you must demonstrate to the IRS that your allowable monthly living expenses equal or exceed your monthly income, leaving no funds available for tax debt payments. This process typically begins with filing Form 433-A, 'Collection Information Statement,' which details your income, expenses, assets, and liabilities. For a single filer in San Juan County, an example of allowable monthly expenses might include a reasonable housing amount (e.g., $1580.0 based on HUD FMR for a 2-bedroom unit, in the absence of an IRS Local Standard), plus $812 for National Standards (food, clothing, etc.), $75 for healthcare (under 65), and $858 for one-car transportation. If your total income is less than or equal to this sum of $3325.0, you may qualify for CNC. Internal Revenue Manual (IRM) 5.16.1 outlines the procedures for placing an account in CNC status, which means the IRS will temporarily stop active collection efforts. Significantly, if a levy has already been issued, IRC §6343 mandates its release if it creates an economic hardship. It's important to remember that while CNC status halts collection, it does not stop the accrual of penalties and interest, nor does it extend the Collection Statute Expiration Date (CSED) under IRC §6502, which typically limits the IRS to 10 years to collect a tax debt.

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Frequently Asked Questions

For San Juan County, UT, the IRS Collection Financial Standards for Housing and Utilities are currently listed as N/A for all household sizes. This means that instead of a predetermined allowance, the IRS will consider your actual, reasonable housing and utility expenses. It is crucial to provide detailed documentation of these costs. For context, the HUD Fair Market Rent (FMR) for a 2-bedroom unit in San Juan County, UT, for FY2025 is $1580.0 per month. While this is not an IRS standard, it can serve as a benchmark to demonstrate the reasonableness of your actual expenses. Under Internal Revenue Manual (IRM) 5.15.1.10, the IRS allows for deviations from standard allowances when justified by a taxpayer's specific circumstances, which is particularly relevant when no local standard is provided.
To qualify for Currently Not Collectible (CNC) status in Utah, you must prove to the IRS that you lack the financial ability to pay your tax debt due to economic hardship. This involves completing and submitting Form 433-A, 'Collection Information Statement for Wage Earners and Self-Employed Individuals,' which details your income, expenses, assets, and liabilities. The IRS will compare your monthly income to your total allowable monthly expenses, which include National Standards for categories like food ($812 for a single person) and Local Standards for transportation ($858 for one car ownership and operating costs). If your allowable expenses meet or exceed your income, you may be granted CNC status. This status, outlined in IRM 5.16.1, signifies that the IRS will temporarily cease active collection efforts. The determination of economic hardship is made under IRC §6343(a)(1)(D), and it's essential to provide thorough documentation of all your financial circumstances.
When the IRS issues a wage levy (Form 668-W) in San Juan County, UT, the amount they can take from your paycheck is determined by specific calculations outlined in IRS Publication 1494, 'Table for Figuring Amount Exempt from Levy.' This publication establishes a portion of your wages that is exempt from levy, ensuring you have funds for basic living expenses. For example, a single individual with no dependents has a monthly exempt amount of $1096.67. If that same single individual has one dependent, the exempt amount increases to $1680.0 monthly. For married individuals filing jointly with one dependent, the exempt amount is $2286.67. The IRS can only levy the amount of your disposable earnings that exceeds these exempt thresholds. This action is authorized under IRC §6331, but the amount is carefully calculated to mitigate undue hardship on the taxpayer, unlike state wage garnishment limits that adhere to federal CCPA guidelines.
Since the IRS Local Standards for Housing and Utilities are listed as N/A for San Juan County, UT, taxpayers are permitted to claim their actual, reasonable housing expenses. This means that if your rent is, for instance, $1580.0 for a 2-bedroom unit as per HUD FY2025 Fair Market Rent data for the area, and this is a reasonable market rate, the IRS will generally allow this amount. You are not bound by a specific, lower IRS standard in this particular county. Internal Revenue Manual (IRM) 5.15.1.10 provides guidance on justifying expenses that exceed standard allowances, or, in this case, establishing the reasonableness of actual expenses when no standard exists. It's crucial to provide clear documentation, such as lease agreements and utility bills, to support your claimed housing costs to the IRS, particularly when completing Form 433-A.
The IRS generally has 10 years to collect a tax debt, a period referred to as the Collection Statute Expiration Date (CSED). This 10-year period typically begins from the date the tax was assessed, as stipulated by Internal Revenue Code (IRC) §6502. However, certain actions can 'toll' or pause this 10-year clock. For instance, if you enter into an Offer in Compromise (Form 656), request a Collection Due Process hearing, or reside outside the U.S. for extended periods, the CSED can be suspended. While obtaining Currently Not Collectible (CNC) status in Utah will temporarily halt active collection efforts, it does not typically extend the CSED. This means that even if your account is in CNC status, the 10-year collection window continues to run, offering a potential path to the expiration of the debt if your financial hardship persists for the duration of the CSED.

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