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Steele County, North Dakota: Navigating IRS Wage Levies and Hardship

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

Understanding IRS Collection Standards in Steele County

For taxpayers in Steele County, North Dakota, facing IRS collection actions, understanding the IRS Collection Financial Standards is paramount. These standards, published on IRS.gov and derived from US Census Bureau American Community Survey and Bureau of Labor Statistics data, dictate how the IRS calculates your disposable income on Form 433-A, Collection Information Statement. While Steele County does not have a specific IRS Local Standard for Housing & Utilities, the IRS National Standards provide allowances such as $812 for a single person's food, clothing, and other necessities. The IRS uses these figures to determine your ability to pay, and a significant inability can lead to an economic hardship determination under IRC §6343(a)(1)(D), potentially preventing or releasing an IRS levy. Accurate reporting of income and expenses is critical for a favorable outcome.

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

Taxpayers in Steele County, North Dakota, will find that the IRS Collection Financial Standards do not provide a specific Local Standard for Housing & Utilities. This means the IRS will consider your actual necessary housing and utility expenses, which you must substantiate. In such cases, the U.S. Department of Housing & Urban Development (HUD) Fair Market Rent (FMR) data provides a valuable benchmark for reasonable housing costs. For instance, the FY2025 HUD FMR for a 2-bedroom unit in Steele County is $970.0. If your actual, necessary housing costs exceed what the IRS might initially deem reasonable, you can argue for a deviation from the standard under Internal Revenue Manual (IRM) 5.15.1.10. This is especially relevant when local housing costs are not explicitly covered by IRS Local Standards. While regional shelter CPI data is not available for Steele County, using HUD FMR as a baseline strengthens your argument for actual, necessary expenses.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS allows specific amounts for other essential living expenses in Steele County, North Dakota. The IRS National Standards for Food, Clothing & Other, based on Bureau of Labor Statistics Consumer Expenditure Survey data, allocate $812 per month for a single individual, increasing to $1983 for a family of four. This includes $449 for food, $44 for housekeeping supplies, $99 for apparel, $45 for personal care products, and $175 for miscellaneous items for a single person. For healthcare, the IRS National Standards for Out-of-Pocket Healthcare, derived from the Medical Expenditure Panel Survey, allow $75 per person under 65 and $153 per person 65 and over monthly. Transportation allowances for Steele County include $588 for the ownership of one car and an additional $270 for operating costs in this region, totaling $858 per month for one vehicle. These figures, based on BLS data and AAA operating costs, are crucial for calculating your allowable expenses.

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

For taxpayers in Steele County, North Dakota, demonstrating economic hardship can lead to a Currently Not Collectible (CNC) status. This temporary relief, outlined in IRM 5.16.1, means the IRS agrees you cannot afford to pay your tax debt after accounting for necessary living expenses. To qualify, you must file Form 433-A, Collection Information Statement, detailing your income, assets, and expenses. Your monthly income is compared against the total allowable expenses, which for a single filer in Steele County could include a practical housing expense of $970.0 (using a 2BR HUD FMR as a reasonable local benchmark), $812 for food and other necessities, $75 for healthcare (under 65), and $858 for transportation. If your total allowable expenses ($2715.0 in this example) exceed your net disposable income, the IRS may place your account in CNC. While CNC status means the IRS pauses collection, it does not stop interest and penalties from accruing, nor does it extend the 10-year Collection Statute Expiration Date (CSED) under IRC §6502. Upon approval, IRS levies, such as those under IRC §6331, may be released per IRC §6343.

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Frequently Asked Questions

For Steele County, North Dakota, the IRS Collection Financial Standards for Housing & Utilities are listed as 'N/A,' meaning there isn't a pre-determined fixed amount. Instead, the IRS will evaluate your actual, necessary housing expenses. Taxpayers should use reliable local data, such as the HUD FY2025 Fair Market Rent, which lists $970.0 for a 2-bedroom unit in Steele County, as a benchmark for reasonable costs. If your actual expenses are higher and you can substantiate their necessity, you may argue for a deviation from standard allowances under IRM 5.15.1.10. This requires providing documentation like lease agreements or mortgage statements and utility bills to the IRS.
To qualify for Currently Not Collectible (CNC) status in North Dakota, you must demonstrate to the IRS that you lack the financial ability to pay your tax debt after meeting necessary living expenses. This is primarily done by submitting a detailed Form 433-A, Collection Information Statement, outlining your income, assets, and all allowable expenses. The IRS will compare your income against National and Local Standards for expenses. For a single individual in Steele County, this would include National Standards for food ($812), healthcare ($75), transportation ($858), and your actual, necessary housing expenses (e.g., using a $970.0 HUD FMR as a reasonable local benchmark). If your total allowable expenses exceed your income, the IRS, guided by IRM 5.16.1, may place your account in CNC status, temporarily halting collection efforts.
When the IRS issues a wage levy (Form 668-W) in Steele County, North Dakota, the amount taken is determined by specific exemptions outlined 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 rises 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 increases to $2286.67. Any wages exceeding this exempt amount are subject to the levy. North Dakota generally follows federal Consumer Credit Protection Act (CCPA) limits for state-level garnishments, but federal IRS levies supersede these limits, taking either 25% of disposable earnings or the amount above 30 times the federal minimum wage, whichever is less, after considering the Publication 1494 exemptions.
If your actual rent or mortgage payment in Steele County, North Dakota, exceeds the amount the IRS initially allows, you have the right to request a deviation from the standard. Since Steele County has no specific IRS Local Standard for Housing & Utilities (listed as 'N/A'), the IRS will consider your actual, necessary housing expenses. For example, if your rent is higher than the HUD FY2025 Fair Market Rent of $970.0 for a 2-bedroom unit, you must provide documentation (e.g., lease, mortgage statements, utility bills) and a clear explanation of why your housing costs are necessary and reasonable for your circumstances. IRM 5.15.1.10 specifically allows for such deviations when a taxpayer's expenses exceed the standard due to unique circumstances, strengthening your ability to protect your essential housing.
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. While certain actions, like filing for bankruptcy or an Offer in Compromise (Form 656), can temporarily suspend the CSED, being placed in Currently Not Collectible (CNC) status (IRM 5.16.1) does not extend this 10-year collection window. This means that even if your account is in CNC status for several years due to economic hardship, the CSED continues to run, and the debt may eventually expire without being fully collected. Understanding your CSED is a critical component of any long-term tax resolution strategy.

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