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Navigating IRS Wage Levy & Hardship in Teller County, Colorado

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

Understanding IRS Collection Standards in Teller County

When facing IRS enforced collection actions in Teller County, Colorado, understanding the IRS Collection Financial Standards is paramount. These standards, used by the IRS to determine a taxpayer's ability to pay, are outlined on Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals. The IRS calculates your disposable income by subtracting allowable living expenses from your gross income, using both National and Local Standards. For a single individual in Teller County, the National Standard for Food, Clothing, and Other necessities is $812 per month. While specific IRS local housing standards are designated as N/A for this region, the IRS acknowledges that taxpayers must have sufficient funds for basic living expenses to avoid economic hardship, as per IRC §6343(a)(1)(D). This crucial data is derived from authoritative sources like IRS.gov, the Bureau of Labor Statistics (BLS), and the U.S. Census Bureau, ensuring a standardized yet often challenging assessment of financial capacity.

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

For residents of Teller County, CO HUD Metro FMR Area, a critical aspect of IRS collection negotiations involves housing and utilities. While the IRS Collection Financial Standards state 'N/A' for specific local housing and utilities allowances in this region, taxpayers are not left without recourse. The U.S. Department of Housing & Urban Development (HUD) provides Fair Market Rent (FMR) data, which indicates a 2-bedroom unit in Teller County has an FMR of $1320.0 per month. If your actual housing expenses exceed the general IRS Local Standards (which are N/A here, making actual expenses the primary consideration), you can argue for a deviation based on a necessary expense, as detailed in Internal Revenue Manual (IRM) 5.15.1.10. This is especially relevant when your actual rent, for example, is $1320.0 or higher, demonstrating that your housing costs are reasonable for the area. While regional Shelter CPI data is not available for this specific region, the HUD FMR provides a strong benchmark for justifying necessary housing expenses during your IRS financial analysis.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS allows for essential living expenses covering food, healthcare, and transportation, vital for residents of Teller County, Colorado. The National Standards for Food, Clothing, and Other necessities range from $812 per month for a single person to $1983 for a family of four, based on the Bureau of Labor Statistics Consumer Expenditure Survey. Healthcare is also a critical consideration; the IRS allows $75 per month for individuals under 65 and $153 per month for those 65 and over, per person, derived from the Medical Expenditure Panel Survey. For transportation, Teller County residents can account for $588 per month for one car ownership costs and an additional $270 for operating costs in this region, totaling $858 for one vehicle. These allowances, based on BLS data and American Automobile Association operating costs, are crucial for demonstrating your necessary monthly expenses when completing IRS Form 433-A.

Qualifying for Currently Not Collectible (CNC) Status in Colorado

Achieving Currently Not Collectible (CNC) status in Colorado means the IRS has determined you lack the financial ability to pay your tax debt. To qualify, you must submit a detailed financial statement, typically IRS Form 433-A, Collection Information Statement. The IRS will compare your total monthly income against your allowable living expenses, using the National and Local Standards. For a single filer in Teller County, your total allowable expenses might be calculated as: housing (using the HUD FMR benchmark of $1320.0 for a 2-bedroom, given IRS N/A standards) + food ($812) + healthcare ($75, if under 65) + transportation ($858) = $3065.0. If your income does not exceed this total, you could qualify for CNC status. IRM 5.16.1 outlines the procedures for placing an account in CNC status, which can lead to a levy release under IRC §6343. Importantly, while CNC status pauses collection efforts, it does not stop the accrual of penalties and interest, nor does it extend the Collection Statute Expiration Date (CSED) under IRC §6502, which is generally 10 years from the assessment date.

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Frequently Asked Questions

For Teller County, CO HUD Metro FMR Area, the IRS Collection Financial Standards currently list 'N/A' for specific local housing and utilities allowances. This means the IRS does not have a pre-determined standard amount for this region. Instead, taxpayers must document their actual, reasonable housing expenses on IRS Form 433-A. The U.S. Department of Housing & Urban Development (HUD) Fair Market Rent (FMR) data can serve as a strong benchmark for what is considered reasonable for the area, such as $1320.0 per month for a 2-bedroom unit. If your actual expenses exceed the N/A standard, you would argue for a necessary expense deviation under IRM 5.15.1.10, demonstrating that your housing costs are appropriate for your household size and the local market.
To qualify for Currently Not Collectible (CNC) status in Colorado, you must demonstrate to the IRS that you lack the current ability to pay your tax debt due to financial hardship. This typically involves submitting IRS Form 433-A, Collection Information Statement, detailing all your income, assets, and expenses. The IRS will compare your total monthly income against your allowable living expenses, which are based on National Standards (e.g., $812 for a single person's food) and Local Standards (e.g., $858 for transportation in Teller County, plus actual housing costs given the N/A IRS standard). If your necessary expenses consume all your disposable income, leaving nothing for tax payments, the IRS may place your account in CNC status, temporarily halting collection efforts. This process is governed by IRM 5.16.1 and can lead to a levy release under IRC §6343.
If the IRS levies your wages in Teller County, Colorado, using Form 668-W, Notice of Levy on Wages, Salary, and Other Income, they are limited by federal law. The amount exempt from levy is determined by your filing status and number of dependents, as outlined in IRS Publication 1494. For example, a single individual with zero dependents can protect $1096.67 per month from an IRS wage levy, while a single individual with one dependent can protect $1680.0 per month. The remaining amount above the exempt threshold is subject to the levy. Colorado generally follows federal Consumer Credit Protection Act (CCPA) limits, which state that the maximum amount garnished is the lesser of 25% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum wage. However, the IRS is not bound by state garnishment limits and can take more, up to the amounts not exempt under Publication 1494.
For Teller County, CO HUD Metro FMR Area, the IRS Collection Financial Standards state 'N/A' for local housing allowances, meaning there is no pre-set standard amount. If your actual rent, such as a 2-bedroom at $1320.0 according to HUD Fair Market Rent data, exceeds what the IRS might otherwise consider reasonable in other areas, you absolutely have grounds to argue for its necessity. IRM 5.15.1.10 explicitly allows for deviations from standard amounts when a taxpayer can demonstrate that their actual expenses are necessary and reasonable for their household and local economic conditions. You would need to provide documentation (lease agreements, utility bills) to substantiate these costs on IRS Form 433-A, asserting that these expenses are essential for your health and welfare and that of your family.
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 begins from the date the tax was assessed. While an Offer in Compromise (Form 656) or a Collection Due Process appeal can pause this clock, obtaining Currently Not Collectible (CNC) status does not extend the CSED. This means that if your account is placed in CNC status in Teller County, Colorado, the 10-year period for the IRS to collect continues to run. If the CSED expires while your account is in CNC status, the IRS loses its legal authority to collect the debt, and it may be discharged. This makes CNC a powerful strategy, as detailed in IRM 5.16.1, for taxpayers who genuinely cannot pay before the statute expires.

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