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IRS Wage Levy & Hardship Relief in St. Mary's County, Maryland

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

Understanding IRS Collection Standards in St. Mary's County

Navigating IRS enforced collection actions in St. Mary's County, Maryland, requires a precise understanding of the IRS Collection Financial Standards. When the IRS evaluates a taxpayer's ability to pay, typically via Form 433-A, Collection Information Statement, they calculate disposable income by subtracting allowable living expenses from gross income. These expenses are determined by a combination of National and Local Standards, derived from comprehensive data by the Bureau of Labor Statistics and the U.S. Census Bureau. For instance, a single individual in St. Mary's County is allowed $812 monthly for food, clothing, and other necessities. While specific IRS local housing standards for this area are not published, actual necessary housing costs are considered. The objective is to determine if enforcing collection would create an 'economic hardship,' a condition that, under Internal Revenue Code (IRC) §6343(a)(1)(D), may lead to a levy release or the placement of an account into Currently Not Collectible (CNC) status.

St. Mary's County Housing & Utilities Allowance vs. HUD Fair Market Rent

For St. Mary's County, MD HUD Metro FMR Area, the IRS Collection Financial Standards do not provide a pre-set local housing and utilities allowance. In such cases, taxpayers must substantiate their actual, necessary housing and utility expenses. This is where data from the U.S. Department of Housing and Urban Development (HUD) becomes crucial. For FY2025, the HUD Fair Market Rent (FMR) for a 2-bedroom residence in St. Mary's County is $1830.0. If a taxpayer's actual housing costs align with or are below this FMR, it provides a strong basis for their necessary expense claim. When actual, reasonable expenses exceed the general IRS standards (or, in this case, a reasonable benchmark like FMR), Internal Revenue Manual (IRM) 5.15.1.10 allows for a deviation from the standard amounts. While regional Shelter CPI data for this specific region is not available from the Bureau of Labor Statistics, the HUD FMR provides a robust local economic indicator for housing costs.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS allows for specific National and Local Standards for essential living expenses. For food, clothing, and other necessities, the National Standards, based on the Bureau of Labor Statistics Consumer Expenditure Survey, provide allowances ranging from $812 for a single person to $1983 for a family of four. Healthcare expenses, derived from the Medical Expenditure Panel Survey, allow $75 per person monthly for those under 65 and $153 for those 65 and over. Transportation allowances for St. Mary's County are also specific: owning one car permits an allowance of $588 for ownership costs and $270 for operating costs, totaling $858 per month. These figures, rooted in BLS data and American Automobile Association operating costs, are critical for accurately calculating a taxpayer's ability to pay and establishing an allowable expense budget.

Qualifying for Currently Not Collectible (CNC) Status in Maryland

Achieving Currently Not Collectible (CNC) status in Maryland involves demonstrating to the IRS that, after accounting for allowable living expenses, you have no disposable income to apply to your tax debt. The process begins with filing an accurate Form 433-A, Collection Information Statement, detailing your income, assets, and expenses. For a single filer in St. Mary's County, the calculation would incorporate their actual necessary housing expenses (e.g., $1830.0 for a 2-bedroom FMR benchmark), combined with National Standard allowances such as $812 for food, clothing, and other items, $75 for healthcare (if under 65), and the Local Transportation Standard of $858 for one car. If total allowable expenses exceed net income, the IRS, following IRM 5.16.1 procedures, may place the account into CNC status. This status prevents enforced collection actions, including levies under IRC §6331, and may lead to the release of an existing levy under IRC §6343. Importantly, CNC status does not extend the Collection Statute Expiration Date (CSED) under IRC §6502, which typically limits the IRS to 10 years for collection.

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Frequently Asked Questions

For St. Mary's County, MD HUD Metro FMR Area, the IRS does not publish a specific local housing allowance within its Collection Financial Standards. Therefore, taxpayers must substantiate their actual, necessary housing and utility expenses. The IRS will evaluate these documented costs for reasonableness. A useful benchmark is the U.S. Department of Housing and Urban Development (HUD) Fair Market Rent (FMR), which for FY2025 lists a 2-bedroom residence at $1830.0. If your actual rent and utilities are reasonable and necessary, they can be allowed, potentially requiring a deviation from general standards as outlined in Internal Revenue Manual (IRM) 5.15.1.10. Documenting every expense is critical for this process.
To qualify for Currently Not Collectible (CNC) status in Maryland, you must demonstrate to the IRS that you lack the financial ability to pay your tax debt. This is primarily done by submitting IRS Form 433-A, Collection Information Statement, which details your income, assets, and all allowable living expenses. The IRS compares your monthly net income against National Standards (e.g., $812 for a single person's food, clothing, and other) and Local Standards (e.g., $858 for one car transportation in St. Mary's County). Your actual necessary housing and utility expenses are also considered. If your total allowable expenses equal or exceed your net income, leaving no funds for tax payments, the IRS may place your account in CNC status under IRM 5.16.1. This status signifies that collection is not viable at present.
When the IRS issues a wage levy, typically Form 668-W, Notice of Levy on Wages, Salary, and Other Income, the amount taken from your paycheck is determined by specific exemptions outlined in IRS Publication 1494. These exemption amounts are designed to leave taxpayers with enough funds for basic living expenses. For 2025, a single taxpayer in St. Mary's County with zero dependents is exempt $1096.67 per month from their wages. A single taxpayer with one dependent is exempt $1680.0 monthly. For married filing jointly with zero dependents, the exemption is also $1096.67, increasing to $2286.67 with one dependent. Any amount above this exemption is subject to the levy under IRC §6331. The remaining disposable income is then garnished, without exceeding federal Consumer Credit Protection Act (CCPA) limits.
If your actual rent in St. Mary's County exceeds what the IRS might typically allow as a 'standard,' you are not automatically precluded from having those expenses recognized. Since the IRS does not provide a specific local housing allowance for St. Mary's County, MD HUD Metro FMR Area, you must document your actual and necessary housing expenses. The HUD Fair Market Rent (FMR) for a 2-bedroom residence in FY2025 is $1830.0, which can serve as a strong indicator of reasonable housing costs in the area. If your rent is higher but can be justified as necessary and reasonable given your circumstances, you can request a deviation from standard allowances as per Internal Revenue Manual (IRM) 5.15.1.10. This requires thorough documentation, such as lease agreements and utility bills, to support your claim.
The IRS has a statutory period to collect tax debts, known as the Collection Statute Expiration Date (CSED). Generally, as specified in Internal Revenue Code (IRC) §6502, the IRS has 10 years from the date of assessment to collect a tax liability. This 10-year period can be suspended or extended under certain circumstances, such as during an Offer in Compromise (Form 656) review, when a taxpayer is in bankruptcy, or if a taxpayer lives outside the U.S. While being placed in Currently Not Collectible (CNC) status (IRM 5.16.1) pauses active collection efforts, it typically does not extend the CSED. This means that if the 10-year collection window expires while you are in CNC status, the debt may become legally uncollectible, offering a potential long-term resolution strategy without requiring full payment.

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