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Sully County, South Dakota IRS Wage Levy & Hardship Assistance

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

Understanding IRS Collection Standards in Sully County, SD

When facing IRS enforced collection actions, such as a wage or bank levy, taxpayers in Sully County, South Dakota, must understand how the IRS assesses their ability to pay. The IRS uses a detailed financial analysis, typically documented on Form 433-A, 'Collection Information Statement for Wage Earners and Self-Employed Individuals.' This form requires a comprehensive report of your income, expenses, assets, and liabilities. To determine your disposable income, the IRS applies its National and Local Collection Financial Standards. For a single individual in Sully County, the National Standard for Food, Clothing, and Other Necessities is $812 per month, while a family of four can claim $1983. These standards, derived from Bureau of Labor Statistics (BLS) Consumer Expenditure Survey and US Census Bureau data, ensure that taxpayers retain funds for basic living expenses. If your allowable expenses exceed your income, you may qualify for economic hardship relief under Internal Revenue Code (IRC) §6343(a)(1)(D), potentially leading to a levy release or Currently Not Collectible (CNC) status. This critical data is publicly available on IRS.gov.

Sully County, SD Housing & Utilities Allowance vs. HUD Fair Market Rent

For Sully County, South Dakota, the IRS Collection Financial Standards do not provide a specific Local Standard for Housing and Utilities. In situations where a specific local standard is listed as 'N/A,' the IRS permits taxpayers to claim actual necessary expenses, provided they are reasonable and substantiated. This is where external data, such as the Department of Housing and Urban Development (HUD) Fair Market Rent (FMR) data, becomes crucial. For instance, the HUD FY2025 FMR for Sully County, SD, indicates a 1-bedroom apartment at $790.0 per month and a 2-bedroom at $1010.0 per month. If your actual housing expenses align with or are less than these FMR figures, they are generally considered reasonable. Internal Revenue Manual (IRM) 5.15.1.10 outlines the process for allowing necessary expenses for health and welfare. If your actual, necessary housing costs exceed the general expectations, you can present a deviation argument, emphasizing that these costs are essential for your well-being. Although specific regional Shelter CPI data for Sully County is not available from the Bureau of Labor Statistics, the HUD FMR figures provide a robust benchmark for demonstrating reasonable housing costs in the absence of a direct IRS standard.

Food, Healthcare & Transportation Allowances in Sully County, SD

Beyond housing, the IRS Collection Financial Standards provide specific allowances for other essential living expenses. For food, clothing, and other necessities, a single individual in Sully County, SD, can claim $812 monthly, while a two-person household can claim $1478, and a four-person household can claim $1983. These National Standards are based on the Bureau of Labor Statistics Consumer Expenditure Survey. Healthcare costs are also factored in, with a monthly allowance of $75 per person under 65 years old and $153 per person for those 65 and over, derived from the Medical Expenditure Panel Survey. For transportation, Sully County residents are subject to Local Standards. If you own one car, the allowance is $588 for ownership costs and $270 for operating costs, totaling $858 per month. For two cars, the total allowance is $1446. These figures are based on Bureau of Labor Statistics data and American Automobile Association operating costs for the region, ensuring that taxpayers have the means for essential travel.

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

Achieving Currently Not Collectible (CNC) status is a critical relief option for taxpayers in Sully County, South Dakota, experiencing financial hardship. To qualify, you must demonstrate to the IRS that your income is insufficient to cover your necessary living expenses, leaving no disposable income to pay your tax debt. This process begins by submitting a detailed financial statement, typically Form 433-A. The IRS will then compare your reported income against your allowable expenses, using the National and Local Collection Financial Standards. For a single filer in Sully County, an example calculation might include: $790.0 for 1-bedroom housing (using HUD FMR as a reasonable actual expense in the absence of an IRS standard), $812 for food/clothing/other, $75 for healthcare, and $858 for one-car transportation, totaling $2535.0 in monthly necessary expenses. If your total allowable expenses exceed your net income, the IRS may place your account in CNC status. IRM 5.16.1 outlines the procedures for CNC determinations, and importantly, IRC §6343 allows for the release of an IRS levy if it creates economic hardship. While in CNC status, the IRS generally ceases collection efforts, but the 10-year Collection Statute Expiration Date (CSED) under IRC §6502 continues to run, meaning CNC status does not extend the time the IRS has to collect.

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Frequently Asked Questions

For Sully County, South Dakota, the IRS Collection Financial Standards do not provide a specific Local Standard for Housing and Utilities, listed as 'N/A.' In such cases, the IRS allows taxpayers to claim their actual, necessary housing and utility expenses, provided they are reasonable and substantiated. To determine reasonableness, the IRS often refers to external data like the Department of Housing and Urban Development (HUD) Fair Market Rent (FMR). For FY2025, the HUD FMR for Sully County, SD, is $700.0 for a studio, $790.0 for a 1-bedroom, and $1010.0 for a 2-bedroom. Taxpayers should document their actual costs and may need to present a deviation argument under IRM 5.15.1.10 if their essential expenses exceed these benchmarks.
To qualify for Currently Not Collectible (CNC) status in South Dakota, you must demonstrate to the IRS that you cannot afford to pay your tax debt after meeting necessary living expenses. This involves submitting Form 433-A, 'Collection Information Statement,' detailing your income, assets, and expenses. The IRS will compare your net income against its National and Local Collection Financial Standards. For example, a single person in Sully County, SD, has a National Standard allowance of $812 for food, clothing, and other items, $75 for healthcare (if under 65), and $858 for one-car transportation. If your total allowable expenses, including reasonable actual housing costs (e.g., $790.0 for a 1-bedroom based on HUD FMR), exceed your income, you may be granted CNC status under IRM 5.16.1, which can lead to a levy release under IRC §6343.
If the IRS issues a wage levy (Form 668-W) in Sully County, SD, the amount they can take from your paycheck is determined by IRS Publication 1494, 'Table for Figuring Amount Exempt from Levy.' This publication outlines specific monthly exemption amounts based on your filing status and number of dependents. For 2025, a single individual with zero dependents has a monthly exempt amount of $1096.67. A single individual with one dependent has an exempt amount of $1680.0. For a married individual filing jointly with zero dependents, the exempt amount is also $1096.67, increasing to $2286.67 with one dependent. The IRS can levy any earnings above these exempt amounts. State wage garnishment laws in South Dakota follow federal Consumer Credit Protection Act (CCPA) limits, which cap garnishments at 25% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum wage, whichever is less, but IRS levies generally supersede these limits up to the Publication 1494 exemption.
Since the IRS does not provide a specific Local Standard for Housing and Utilities for Sully County, SD (listed as 'N/A'), taxpayers are allowed to claim their actual, necessary housing expenses. If your rent exceeds what might be considered typical, you must be prepared to substantiate why these expenses are necessary for your health and welfare. The IRS will evaluate the reasonableness of your actual costs, often referencing local market data like the HUD Fair Market Rent (FMR). For FY2025, the HUD FMR for Sully County, SD, is $790.0 for a 1-bedroom and $1010.0 for a 2-bedroom. If your rent is higher, you can argue for a deviation from standard assumptions, as outlined in IRM 5.15.1.10, by demonstrating that your housing costs are essential and unavoidable, such as due to family size, health needs, or lack of more affordable alternatives in the area.
The IRS generally has 10 years to collect a tax debt, measured from the date of tax assessment. This period is known as the Collection Statute Expiration Date (CSED), as defined by Internal Revenue Code (IRC) §6502. While the IRS can pursue various collection actions, including wage levies (Form 668-W) and bank levies (Form 668-A), within this 10-year window, certain events can pause or extend the CSED. However, being placed in Currently Not Collectible (CNC) status, while halting active collection efforts, does NOT extend the CSED. The 10-year clock continues to tick. If the CSED expires while your account is in CNC status, the tax debt becomes legally uncollectible. Understanding the CSED is crucial for taxpayers in Sully County, SD, to strategize their resolution options, including seeking CNC status or an Offer in Compromise, and to know their rights regarding levy releases under IRC §6343.

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