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Summit County, Colorado IRS Wage Levy & Hardship Assistance

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

Understanding IRS Collection Standards in Summit County, CO

When facing IRS collection actions in Summit County, Colorado, understanding the Internal Revenue Service's Collection Financial Standards is crucial. These standards, detailed on IRS Form 433-A, 'Collection Information Statement for Wage Earners and Self-Employed Individuals,' are used by the IRS to determine a taxpayer's ability to pay their tax debt. The IRS calculates a taxpayer's disposable income by subtracting allowable living expenses, categorized into National and Local Standards, from their gross monthly income. For instance, the National Standard for Food, Clothing & Other for a single person is $812 per month, as derived from Bureau of Labor Statistics Consumer Expenditure Survey data. If your allowable expenses exceed your income, you may qualify for a hardship status under IRC §6343(a)(1)(D), preventing or releasing a levy. These standards are meticulously derived from various sources including IRS.gov, Bureau of Labor Statistics (BLS) data, and the US Census Bureau American Community Survey, providing a data-driven framework for evaluating financial capacity.

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

For Summit County, CO, the IRS Collection Financial Standards currently show 'N/A' for the Housing and Utilities Local Standard. This means the IRS will consider a taxpayer's actual, necessary housing expenses. It is imperative for Summit County residents to document their actual rent or mortgage payments and utility costs. The U.S. Department of Housing and Urban Development (HUD) provides valuable context with its FY2025 Fair Market Rent (FMR) data for the area, indicating a 2-bedroom unit averages $2810.0 per month. If your actual, necessary housing expenses exceed what the IRS might typically allow in other areas with established local standards, you can request a deviation. Internal Revenue Manual (IRM) 5.15.1.10 outlines the process for allowing necessary expenses that exceed the established standards. The fact that the HUD FMR is substantial for Summit County, CO, strongly supports a deviation argument for actual housing costs, especially when no specific IRS standard is published. While regional Shelter CPI data for this specific region is not available from the Bureau of Labor Statistics, the high FMR underscores the elevated cost of living.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS Collection Financial Standards define other essential living costs. The National Standards for Food, Clothing & Other allocate $812 monthly for a single individual, increasing to $1983 for a family of four, based on the Bureau of Labor Statistics Consumer Expenditure Survey. Healthcare is another critical allowance, with the IRS permitting $75 per person monthly for those under 65 and $153 for individuals 65 and over, derived from the Medical Expenditure Panel Survey. For transportation in Summit County, Colorado, the IRS Local Standards provide for both ownership and operating costs. A taxpayer with one car can claim $588 for ownership costs and an additional $270 for operating costs in this region, totaling $858 per month. For a two-car household, these allowances double to $1176 for ownership, plus the $270 operating cost per vehicle, summing to $1446 per month. These figures are based on Bureau of Labor Statistics data and American Automobile Association operating costs, ensuring a realistic assessment of necessary expenses.

Qualifying for Currently Not Collectible (CNC) Status in Colorado

Achieving Currently Not Collectible (CNC) status is a critical relief option for taxpayers in Summit County, CO, who demonstrate an inability to pay their tax debt due to financial hardship. To qualify, you must submit a detailed financial statement, typically Form 433-A, 'Collection Information Statement for Wage Earners and Self-Employed Individuals,' to the IRS. The IRS then compares your total monthly income against your total allowable expenses, using the National and Local Standards. For a single filer in Summit County, CO, this might include a reasonable actual housing expense (e.g., using the HUD FY2025 1-bedroom FMR of $2140.0), plus the $812 National Standard for Food, Clothing & Other, $75 for healthcare (under 65), and $858 for one-car transportation, totaling $3885.0 in allowable expenses. If your income does not exceed these necessary expenses, the IRS may place your account in CNC status. IRM 5.16.1 outlines the procedures for CNC determinations, and crucially, IRC §6343 mandates the release of a levy if it creates an economic hardship. While in CNC, 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 the debt.

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Frequently Asked Questions

For Summit County, Colorado, the IRS Collection Financial Standards for Housing and Utilities are currently listed as 'N/A.' This means the IRS will evaluate your actual, necessary housing expenses. It is crucial to provide documentation of your monthly rent or mortgage payments and utility costs on Form 433-A. For context, the U.S. Department of Housing and Urban Development (HUD) reports the FY2025 Fair Market Rent for a 2-bedroom unit in this area at $2810.0. If your actual necessary housing expenses exceed what the IRS might typically allow in other regions, you can request a deviation, as outlined in Internal Revenue Manual (IRM) 5.15.1.10, by demonstrating that your expenses are necessary for your health and welfare or the production of income.
To qualify for Currently Not Collectible (CNC) status in Colorado, you must demonstrate to the IRS that you lack the financial ability to pay your tax debt without experiencing economic hardship. This process typically begins by submitting a comprehensive financial statement, Form 433-A, 'Collection Information Statement for Wage Earners and Self-Employed Individuals,' to the IRS. On this form, you will detail your income, assets, and monthly necessary living expenses, which are evaluated against the IRS National and Local Collection Financial Standards. For example, a single person has an $812 allowance for food and clothing, and a one-car transportation allowance of $858. If your total allowable expenses, as determined by IRS standards and any approved deviations, meet or exceed your monthly income, the IRS, guided by IRM 5.16.1, may place your account into CNC status, temporarily halting active collection efforts.
If the IRS issues a wage levy (Form 668-W) to your employer in Summit County, CO, the amount exempt from the levy 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 instance, a single individual with zero dependents will have $1096.67 of their monthly wages exempt from the levy, while a single individual with one dependent will have $1680.0 exempt. Any wages exceeding this exempt amount can be levied by the IRS under IRC §6331. It's important to note that Colorado generally follows federal limits for wage garnishment, meaning the IRS levy calculation will typically apply. Understanding these precise figures is critical to assess the impact of an IRS wage levy on your take-home pay.
If your rent in Summit County, CO, exceeds the IRS's standard, particularly since the IRS Local Standard for Housing and Utilities is 'N/A' for this area, you must document your actual necessary expenses. For example, the HUD FY2025 Fair Market Rent for a 2-bedroom unit in Summit County is $2810.0, which can be significantly higher than standards in other regions. In such cases, the Internal Revenue Manual (IRM) 5.15.1.10 allows for deviations from the standard amounts. You must demonstrate that your actual housing costs are necessary for your health, welfare, or the production of income. By providing clear evidence of your rental agreement and utility bills on Form 433-A, you can substantiate your claim for a higher housing allowance, which can be crucial in qualifying for a payment plan 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. It's crucial to understand that certain actions can pause or 'toll' this period, such as filing for bankruptcy, submitting an Offer in Compromise (Form 656), or requesting a Collection Due Process (CDP) hearing. However, being placed in Currently Not Collectible (CNC) status, as outlined in IRM 5.16.1, does NOT extend the CSED. While CNC status temporarily halts active collection efforts, the 10-year collection window continues to run. This makes CNC a strategic option for taxpayers in Summit County, CO, who are nearing their CSED, as it can allow the statute to expire without the IRS collecting the debt.

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