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Navigating IRS Wage Levy and Hardship in Summit County, Utah

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

Understanding IRS Collection Standards in Summit County

When facing IRS enforced collection, such as a wage levy (Form 668-W) or bank levy (Form 668-A), the IRS evaluates your ability to pay through a detailed financial analysis using Form 433-A, Collection Information Statement. This assessment determines your 'disposable income' by comparing your gross income against IRS National and Local Standards for necessary living expenses. For Summit County, Utah residents, these standards cover essential outlays like food, housing, and transportation. For example, a single person's monthly food allowance is $812, derived from the Bureau of Labor Statistics Consumer Expenditure Survey. The IRS uses data from IRS.gov Collection Financial Standards, which is compiled from the US Census Bureau American Community Survey and BLS data, to ensure a fair assessment. 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.

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

For taxpayers in Summit County, Utah, it's crucial to understand the IRS's approach to housing and utilities. The IRS Collection Financial Standards currently show 'N/A' for all household sizes for Summit County's housing and utilities allowance. This significant detail means the IRS will consider your actual necessary housing and utility expenses, rather than a fixed standard. This is where comparing your costs to external data, such as the HUD FY2025 Fair Market Rent, becomes vital. For instance, the HUD FMR for a 2-bedroom residence in Summit County is $1630.0 per month. If your actual rent or mortgage payment is $1630.0 or higher, and the IRS local standard is N/A, this strengthens your argument for allowing your full necessary housing expense. Internal Revenue Manual (IRM) 5.15.1.10 allows for deviations from standard allowances when justified by a taxpayer's unique circumstances. While regional shelter CPI data is not available for this specific region, the absence of an IRS standard necessitates a detailed presentation of your actual housing costs to the IRS.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS provides specific allowances for other essential living expenses for Summit County, UT residents. For food, clothing, and other necessities, the IRS National Standards dictate a monthly allowance of $812 for a single person, which includes $449 for food, $44 for housekeeping supplies, $99 for apparel and services, $45 for personal care products, and $175 for miscellaneous items. For a family of four, this allowance increases to $1983. These figures are based on the Bureau of Labor Statistics Consumer Expenditure Survey. Healthcare costs are also factored in; the IRS allows $75 per person under 65 and $153 per person for those 65 and over for out-of-pocket medical expenses, derived from the Medical Expenditure Panel Survey. For transportation, Summit County residents can claim $588 for one car ownership and an additional $270 for operating costs in the region, totaling $858 per month for a single vehicle. These transportation allowances are based on BLS data and American Automobile Association operating costs, ensuring essential travel expenses are considered.

Qualifying for Currently Not Collectible (CNC) Status in Utah

For taxpayers in Summit County, Utah experiencing severe financial hardship, Currently Not Collectible (CNC) status offers a temporary reprieve from IRS enforced collection. To qualify, you must demonstrate, usually through Form 433-A, Collection Information Statement, that your allowable monthly living expenses equal or exceed your monthly income, leaving no funds available to pay your tax debt. For a single filer in Summit County, consider an example calculation: if your actual housing cost is $1630.0 (based on HUD FMR for a 2-bedroom), plus $812 for food and other necessities, $75 for healthcare (under 65), and $858 for one-car transportation, your total allowable expenses could reach $3375.0. If your income is less than or equal to this amount, you are a strong candidate for CNC. IRM 5.16.1 outlines the procedures for placing accounts in CNC status, and once granted, the IRS will typically release any existing levies under IRC §6343(a)(1)(D). It's important to note that while CNC status halts active collection, it does not stop interest and penalties from accruing, nor does it extend the Collection Statute Expiration Date (CSED), which is generally 10 years from the assessment date under IRC §6502.

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Frequently Asked Questions

For Summit County, Utah, the IRS Collection Financial Standards for housing and utilities currently list 'N/A' for all household sizes. This means there is no fixed standard allowance. Instead, the IRS will evaluate your actual, reasonable housing and utility expenses. For reference, the HUD FY2025 Fair Market Rent for a 2-bedroom residence in Summit County is $1630.0 per month. If your actual housing costs are higher than a perceived 'reasonable' amount, you will need to provide documentation and justification for these expenses. This situation allows taxpayers to present their specific, necessary costs, which can be advantageous in demonstrating financial hardship for purposes like a levy release or Currently Not Collectible status.
To qualify for Currently Not Collectible (CNC) status in Utah, you must prove to the IRS that you cannot afford to pay your tax debt after covering necessary living expenses. This process typically involves submitting Form 433-A, Collection Information Statement, detailing your income, assets, and monthly expenses. The IRS compares your income against their National and Local Standards. For example, a single person in Summit County would be allowed $812 for food and other necessities, $75 for healthcare (under 65), and $858 for one-car transportation. Since Summit County has 'N/A' for housing standards, your actual reasonable housing costs (e.g., $1630.0 for a 2-bedroom based on HUD FMR) would be factored in. If your total allowable expenses meet or exceed your income, you may be granted CNC status, halting active collection efforts as per IRM 5.16.1. However, interest and penalties continue to accrue, and the 10-year collection statute (IRC §6502) is not extended.
The amount the IRS can levy from your paycheck in Summit County, Utah, is determined by IRS Publication 1494, 'Table for Figuring Amount Exempt from Levy.' This table outlines a portion of your wages that is exempt from levy, meaning the IRS cannot take it. For 2025, a single individual with zero dependents has $1096.67 of their monthly wages exempt from levy. If that same single individual has one dependent, the exempt amount increases to $1680.0 per month. For a married individual filing jointly with zero dependents, the exempt amount is also $1096.67, but with one dependent, it rises to $2286.67. The IRS issues Form 668-W (Notice of Levy on Wages, Salary, and Other Income) to your employer, who then calculates and remits the non-exempt portion of your pay directly to the IRS. Utah follows federal CCPA limits, ensuring a minimum portion of your disposable earnings remains protected.
In Summit County, Utah, the IRS Collection Financial Standards for housing and utilities are listed as 'N/A' for all household sizes. This unique situation means that if your rent exceeds a general or implied standard, you have a strong basis to justify your actual, necessary housing expenses. For example, if your rent is $1630.0 for a 2-bedroom apartment (consistent with HUD FY2025 Fair Market Rent for the area), you should document this expense thoroughly. The Internal Revenue Manual (IRM) 5.15.1.10 provides guidance on 'Deviation from National and Local Standards,' allowing for higher actual expenses to be considered when justified. You would typically present this information on Form 433-A, Collection Information Statement, to demonstrate that your actual housing costs are reasonable and necessary given the local economic context, even if regional shelter CPI data is not available.
The IRS generally has 10 years to collect a tax debt, a period known as the Collection Statute Expiration Date (CSED), as outlined in Internal Revenue Code (IRC) §6502. This 10-year period typically begins from the date the tax was assessed. It's a critical deadline for both the IRS and taxpayers. While the IRS can pursue various collection actions, such as wage levies (Form 668-W) or bank levies (Form 668-A), within this window, certain events can pause or 'toll' the CSED, effectively extending the time the IRS has to collect. For instance, if you enter into an Offer in Compromise (Form 656), file for bankruptcy, or request a Collection Due Process (CDP) hearing, the CSED clock stops. Importantly, being placed in Currently Not Collectible (CNC) status, as described in IRM 5.16.1, does not extend the CSED; the 10-year clock continues to run while you are in CNC, which can be a strategic advantage for some taxpayers in Summit County, UT.

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