IRS Levy Hardship Analyzer ← Free Analysis Tool

Teton County, Montana: Navigating IRS Wage Levy & Hardship Relief

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

Understanding IRS Collection Standards in Teton County

For taxpayers in Teton County, Montana, facing IRS enforced collection, understanding the Internal Revenue Service's Collection Financial Standards is paramount. The IRS uses these standards to determine a taxpayer's ability to pay, calculating disposable income on Form 433-A, Collection Information Statement. While specific housing and utilities allowances for Teton County, MT, are not provided by the IRS, national standards are applied for essential living expenses. For instance, a single individual is allowed $812 monthly for food, clothing, and other necessities. These standards are crucial for demonstrating economic hardship, as defined under Internal Revenue Code (IRC) §6343(a)(1)(D), which can lead to levy release or Currently Not Collectible (CNC) status. This data is rigorously derived from authoritative sources including IRS.gov, the Bureau of Labor Statistics (BLS), and the U.S. Census Bureau, ensuring a standardized, albeit sometimes challenging, assessment process.

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

Residents of Teton County, MT, should note that the IRS Collection Financial Standards do not provide a specific local allowance for Housing & Utilities, showing as $N/A. In such cases, the IRS will typically evaluate actual necessary expenses. However, a powerful benchmark for demonstrating reasonable housing costs is the U.S. Department of Housing & Urban Development (HUD) Fair Market Rent (FMR) data for the area. For example, the HUD FY2025 FMR for a 1-bedroom unit in Teton County is $1020.0 per month, and a 2-bedroom unit is $1270.0. When actual, necessary housing expenses exceed the IRS's (non-existent) standard, taxpayers can request a deviation under Internal Revenue Manual (IRM) 5.15.1.10. Documenting that your rent aligns with or is below HUD FMR figures, such as the $1270.0 for a 2BR, significantly strengthens an argument for a deviation, especially when regional shelter Consumer Price Index (CPI) data is not specifically available for this region to show cost increases.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS provides specific allowances for other essential expenses. For Food, Clothing & Other, National Standards dictate monthly allowances ranging from $812 for a 1-person household to $1983 for a 4-person household, with an additional $357 for each subsequent person. These figures are based on the Bureau of Labor Statistics Consumer Expenditure Survey. Healthcare costs are addressed by National Standards for Out-of-Pocket Healthcare, allowing $75 per person under 65 and $153 per person 65 and over monthly, derived from the Medical Expenditure Panel Survey. Transportation in Teton County, MT, also has a defined allowance. For one car, the ownership cost is $588 per month, with an additional $270 for operating costs in this specific region, totaling $858. For two cars, the allowance is $1176 for ownership and $270 for operating costs per vehicle, totaling $1446 for both. These figures are based on BLS data and American Automobile Association operating costs.

Qualifying for Currently Not Collectible (CNC) Status in Montana

Achieving Currently Not Collectible (CNC) status in Montana can provide temporary relief from IRS collection actions. To qualify, taxpayers in Teton County must complete and submit Form 433-A, Collection Information Statement, detailing their income, assets, and allowable expenses. The IRS will compare your total monthly income against your total allowable expenses, which include the National Standards for Food, Clothing & Other, Healthcare, and the Local Standards for Transportation. For example, a single filer in Teton County, MT, might demonstrate monthly allowable expenses of $1020.0 for a 1-bedroom (based on HUD FMR), $812 for food, $75 for healthcare (under 65), and $858 for transportation (one car ownership + operating), totaling $2765.0. If your income does not exceed this total, you may qualify for CNC. Internal Revenue Manual (IRM) 5.16.1 outlines the procedures for CNC status, which typically results in the release of levies under IRC §6343. Importantly, while CNC status pauses collection, it does not extend the 10-year Collection Statute Expiration Date (CSED) under IRC §6502.

🏛️ Free IRS Levy Hardship Analysis

To accurately assess your eligibility for IRS hardship relief or levy release in Teton County, MT, utilize a free IRS Levy Hardship Analyzer. Enter your specific financial details and Teton County ZIP code for a personalized evaluation of your case.

Analyze Your Situation

Frequently Asked Questions

For Teton County, Montana, the IRS Collection Financial Standards currently show 'N/A' for the Housing & Utilities allowance. This means the IRS does not have a pre-determined standard for this region. Instead, taxpayers must substantiate their actual necessary housing expenses. For guidance, the HUD FY2025 Fair Market Rent (FMR) for Teton County indicates $1020.0 per month for a 1-bedroom unit and $1270.0 for a 2-bedroom unit. If your actual, necessary housing costs align with or are below these FMR figures, you can present them to the IRS. Taxpayers whose housing expenses exceed national or local standards can request a deviation, as outlined in Internal Revenue Manual (IRM) 5.15.1.10, by providing detailed documentation.
To qualify for Currently Not Collectible (CNC) status in Montana, you must demonstrate to the IRS that you lack the financial ability to pay your tax debt after covering necessary living expenses. This process begins by accurately completing and submitting Form 433-A, Collection Information Statement. The IRS will then compare your gross monthly income against your total allowable expenses, which include National Standards for food ($812 for a single person), healthcare ($75 per person under 65), and Local Standards for transportation ($858 for one car ownership + operating in Teton County). If your income does not exceed these allowable expenses, the IRS may place your account in CNC status. This effectively pauses collection activities, including the release of levies under IRC §6343, as detailed in Internal Revenue Manual (IRM) 5.16.1. It is a temporary relief and requires periodic review.
When the IRS issues a wage levy (Form 668-W) in Teton County, Montana, the amount taken from your paycheck is determined by specific calculations outlined in IRS Publication 1494 (2025). The IRS is legally required to leave you with a certain amount exempt from levy, based on your filing status and the number of dependents you claim. For example, a single individual with zero dependents has a monthly exempt amount of $1096.67, while a single individual with one dependent is exempt for $1680.0 per month. For a married couple filing jointly with one dependent, the exempt amount is $2286.67. Any disposable earnings exceeding this exempt amount can be levied by the IRS, up to 100%. This is enforced under Internal Revenue Code (IRC) §6331, which grants the IRS authority to levy wages and other property.
Given that the IRS Collection Financial Standards show 'N/A' for housing and utilities in Teton County, MT, if your rent is a necessary and reasonable expense, it should be fully considered. For instance, if your rent is $1270.0 for a 2-bedroom unit, which aligns with the HUD FY2025 Fair Market Rent for the area, you can present this as a necessary expense. Even if there were a specific IRS standard and your rent exceeded it, Internal Revenue Manual (IRM) 5.15.1.10 allows taxpayers to request a deviation from the established standards. To do this, you must demonstrate that your actual, necessary expenses are higher than the standard and provide documentation to support your claim. This is a crucial avenue for taxpayers to ensure their legitimate living costs are accounted for when determining their ability to pay.
The IRS has a statutory period of 10 years to collect a tax debt, known as the Collection Statute Expiration Date (CSED), as outlined in Internal Revenue Code (IRC) §6502. This 10-year period generally begins on the date the tax was assessed. It is critical to understand that while actions like entering into an Offer in Compromise or filing for bankruptcy can pause (toll) the CSED, being placed in Currently Not Collectible (CNC) status does not extend this 10-year collection window. The IRS can pursue collection actions, including wage levies (Form 668-W) and bank levies (Form 668-A), throughout this period under IRC §6331. Therefore, even if you are in CNC status, the clock on your tax debt's collectibility continues to run, emphasizing the importance of actively managing your tax resolution strategy.

Sources & Methodology