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IRS Wage Levy & Hardship Assistance for Silver Bow County, Montana Taxpayers

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

Understanding IRS Collection Standards in Silver Bow County

When the IRS evaluates a taxpayer's ability to pay in Silver Bow County, Montana, they meticulously analyze income and allowable expenses using Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals. This process determines your disposable income, which is the amount the IRS deems available for tax payments. The IRS relies on a combination of National and Local Standards to ensure a fair assessment. For instance, the National Standard for Food, Clothing, and Other necessities allocates $812 monthly for a single individual, increasing to $1983 for a family of four. While specific housing and utilities standards are not provided by the IRS for Silver Bow County, other critical standards, such as transportation, are applied. If your allowable expenses exceed your income, you may qualify for economic hardship relief under IRC §6343(a)(1)(D), preventing or releasing a levy. These standards are derived from authoritative sources like IRS.gov Collection Financial Standards, Bureau of Labor Statistics (BLS) Consumer Expenditure Survey, and US Census Bureau data.

Silver Bow County Housing & Utilities Allowance vs. HUD Fair Market Rent

For Silver Bow County, Montana, the IRS Collection Financial Standards do not provide a specific local housing and utilities allowance, indicating 'N/A' for all household sizes. In such cases, taxpayers must substantiate their actual housing expenses. For comparison, the US Department of Housing & Urban Development (HUD) sets the FY2025 Fair Market Rent (FMR) for a 2-bedroom unit in Silver Bow County at $1420.0, and a 1-bedroom at $1150.0. If your actual housing costs, such as the HUD FMR of $1420.0 for a 2BR, reasonably exceed the unstated IRS allowance, you can argue for a deviation from standard allowances as outlined in Internal Revenue Manual (IRM) 5.15.1.10. This deviation process is crucial for taxpayers in regions without explicit IRS housing standards, allowing them to present a more accurate picture of their necessary living expenses. While regional Shelter CPI data for Silver Bow County is not available from the Bureau of Labor Statistics, the significant difference between actual housing costs and potentially low or non-existent IRS local standards strengthens a deviation argument.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS allows specific monthly expenses for other essential categories. The National Standards for Food, Clothing, and Other necessities provide $812 for a single person, $1478 for a two-person household, $1697 for three, and $1983 for a family of four. These figures are based on the Bureau of Labor Statistics Consumer Expenditure Survey. Healthcare is covered by National Standards for Out-of-Pocket Healthcare, allowing $75 per person monthly for those under 65, and $153 for those 65 and over, derived from the Medical Expenditure Panel Survey. For transportation in Silver Bow County, Montana, the IRS Local Standards permit $588 monthly for ownership of one car and an additional $270 for operating costs in this region, totaling $858 per month for a single vehicle. For two cars, the allowance is $1176 for ownership, plus $270 for operating, totaling $1446. These transportation figures are based on Bureau of Labor Statistics data and American Automobile Association operating costs.

Qualifying for Currently Not Collectible (CNC) Status in Montana

Taxpayers in Silver Bow County, Montana, facing severe financial hardship may qualify for Currently Not Collectible (CNC) status. This status, detailed in Internal Revenue Manual (IRM) 5.16.1, means the IRS temporarily stops active collection efforts. To qualify, you must submit Form 433-A, Collection Information Statement, demonstrating that your necessary living expenses equal or exceed your income, leaving no disposable income for tax payments. For a single filer in Silver Bow County, for example, essential monthly expenses could include an estimated housing cost of $1420.0 (based on HUD FMR for a 2BR, as IRS standards are N/A), $812 for food/clothing/other, $75 for healthcare (under 65), and $858 for one-car transportation. This sums to $3165.0 in allowable expenses. If your net income is less than or equal to this amount, the IRS may grant CNC status. While CNC stops levies, it does not erase the debt, and interest and penalties continue to accrue. However, it provides crucial relief, and under IRC §6343, a levy can be released if it creates economic hardship. Importantly, CNC status does not extend the Collection Statute Expiration Date (CSED) under IRC §6502, which generally limits the IRS to 10 years to collect the debt.

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Frequently Asked Questions

For Silver Bow County, Montana, the IRS Collection Financial Standards for Housing and Utilities are listed as 'N/A' for all household sizes in 2025. This means the IRS does not provide a predetermined monthly allowance for rent and utilities in this specific area. Instead, taxpayers must document and justify their actual, reasonable housing expenses. For context, the U.S. Department of Housing & Urban Development (HUD) provides Fair Market Rent (FMR) data, showing a 2-bedroom unit in Silver Bow County at $1420.0 per month and a 1-bedroom at $1150.0. If your actual housing costs are reasonable and exceed what the IRS might otherwise deem acceptable, you can argue for a deviation, as outlined in IRM 5.15.1.10, when submitting Form 433-A to demonstrate your financial situation.
To qualify for Currently Not Collectible (CNC) status in Montana, you must demonstrate to the IRS that you lack the financial ability to pay your tax debt due to economic hardship. This process begins by filing Form 433-A, Collection Information Statement, which details your income, assets, and necessary monthly living expenses. The IRS will compare your total income against your allowable expenses, which include National Standards for categories like food ($812 for a single person) and healthcare ($75 for those under 65), and Local Standards for transportation ($858 for one car). If your total allowable expenses equal or exceed your income, the IRS, guided by IRM 5.16.1, may place your account in CNC status. This temporarily halts collection actions like levies, providing crucial relief under IRC §6343, but does not forgive the debt or extend the collection statute of limitations (IRC §6502).
When the IRS issues a wage levy (Form 668-W) in Silver Bow County, Montana, the amount taken from your paycheck is not a fixed percentage but is determined by specific exemption amounts designed to leave you with funds for basic living expenses. These amounts are detailed in IRS Publication 1494. For 2025, a single taxpayer with zero dependents has a monthly exempt amount of $1096.67. If that single taxpayer claims one dependent, the exempt amount increases to $1680.0 per month. For a married individual filing jointly with zero dependents, the same $1096.67 is exempt, while with one dependent, it rises to $2286.67. Any disposable earnings exceeding these exempt amounts can be levied. Montana's state wage garnishment laws also follow federal limits, meaning the IRS levy typically supersedes state rules due to its federal authority, but the federal limits ensure a minimum amount is protected.
If your rent in Silver Bow County, Montana, exceeds the IRS's unstated housing allowance (which is 'N/A' for this county), you are not automatically disqualified from tax relief options. The IRS allows for deviations from standard allowances under certain circumstances, as outlined in Internal Revenue Manual (IRM) 5.15.1.10. You must provide documentation (e.g., lease agreements, utility bills) to substantiate that your actual housing costs are necessary and reasonable for your household size and circumstances. For instance, if your rent is $1420.0 for a 2-bedroom unit, as suggested by HUD FY2025 Fair Market Rent data, and this is a necessary expense, you can present this information on Form 433-A. The IRS will evaluate your entire financial picture to determine if your expenses are allowable, potentially leading to a lower payment agreement or Currently Not Collectible (CNC) status.
The IRS generally has 10 years to collect a tax debt, a period known as the Collection Statute Expiration Date (CSED), as mandated by Internal Revenue Code (IRC) §6502. This 10-year clock typically starts from the date the tax was assessed. However, certain actions can pause or extend this period. For example, filing for bankruptcy, requesting an Offer in Compromise (Form 656), or placing your account in Currently Not Collectible (CNC) status can temporarily suspend the CSED. While CNC status (IRM 5.16.1) provides relief from active collection efforts, it's crucial to understand that it does not automatically extend the 10-year collection window. If your account is in CNC for a period, the CSED clock will generally resume once the CNC status is lifted. Strategically managing the CSED is a critical component of any long-term tax resolution plan, particularly when considering options like CNC or an Offer in Compromise.

Sources & Methodology