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Navigating IRS Wage Levy & Hardship in Texarkana, Texas-Arkansas

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

Understanding IRS Collection Standards in Texarkana, TX-Texarkana, AR HUD Metro FMR Area

When facing IRS enforced collection actions in the Texarkana, TX-Texarkana, AR HUD Metro FMR Area, understanding the IRS Collection Financial Standards is paramount. The IRS uses Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals, to meticulously calculate a taxpayer's ability to pay by determining their disposable income. This calculation relies on a combination of National and Local Standards, which are derived from robust data sources including IRS.gov, the Bureau of Labor Statistics (BLS), and the US Census Bureau. For a single individual in Texarkana, the National Standard for Food, Clothing & Other is $812 monthly, while a family of four can be allowed up to $1983. These standards help the IRS determine if an economic hardship exists, which, according to Internal Revenue Code (IRC) §6343(a)(1)(D), may lead to the release of a levy if it creates an immediate economic hardship.

Texarkana, TX-AR Housing & Utilities Allowance vs. HUD Fair Market Rent

For taxpayers in the Texarkana, TX-Texarkana, AR HUD Metro FMR Area, it is critical to note that the IRS Collection Financial Standards currently show 'N/A' for specific Housing and Utilities allowances. In such cases, the IRS will typically consider a taxpayer's actual housing and utility expenses, provided they are deemed reasonable. A strong benchmark for reasonableness is the US Department of Housing & Urban Development (HUD) Fair Market Rent (FMR) data, which indicates a 2-bedroom unit in this area has an FMR of $1050.0 per month. If your actual rent exceeds this, you may need to argue for a deviation, as outlined in Internal Revenue Manual (IRM) 5.15.1.10. This guidance allows for exceptions to standard allowances based on specific facts and circumstances, and the absence of a direct IRS standard strengthens a deviation argument. Unfortunately, regional Shelter CPI data for this area is not available to provide a year-over-year comparison.

Food, Healthcare & Transportation Allowances in Texarkana

Beyond housing, the IRS allows for essential living expenses covering food, healthcare, and transportation for residents of the Texarkana, TX-Texarkana, AR HUD Metro FMR Area. The National Standards for Food, Clothing & Other, based on the BLS Consumer Expenditure Survey, provide a single person with an allowance of $812 per month, while a family of four is allowed $1983. Healthcare allowances, derived from the Medical Expenditure Panel Survey, are $75 per person monthly for those under 65 and $153 for those 65 and over. Transportation allowances, based on BLS data and American Automobile Association operating costs, are also factored in. For one car, the ownership cost is $588 and operating costs for the region are $270, totaling $858 per month. For two cars, the total allowance is $1446 per month, combining $1176 for ownership and $270 for operating costs (for each vehicle's operating costs).

Qualifying for Currently Not Collectible (CNC) Status in Texas

Achieving Currently Not Collectible (CNC) status can provide significant relief for taxpayers in Texarkana, Texas, facing IRS collection actions. To qualify, you must demonstrate to the IRS that your allowable living expenses equal or exceed your monthly income, leaving no funds available for tax debt payments. This is primarily documented through Form 433-A. For instance, a single filer in Texarkana might calculate their essential monthly expenses as follows: $1050.0 for a 2-bedroom housing allowance (using HUD FMR as a reasonable proxy given no specific IRS standard), $812 for food, clothing & other, $75 for healthcare (under 65), and $858 for one-car transportation. This totals $2795.0 in allowable expenses. If your net income is less than or equal to this amount, you may qualify for CNC. IRM 5.16.1 outlines the procedures for CNC status, which means the IRS will temporarily cease collection efforts. While CNC status does not forgive the debt, it can lead to the release of an existing levy under IRC §6343 and ensures the Collection Statute Expiration Date (CSED) under IRC §6502 (the 10-year collection window) continues to run, potentially allowing the debt to expire without being paid.

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Frequently Asked Questions

For the Texarkana, TX-Texarkana, AR HUD Metro FMR Area, the IRS Collection Financial Standards currently indicate 'N/A' for specific Housing & Utilities allowances. This means the IRS will evaluate your actual housing expenses for reasonableness. A key reference point for this assessment is the US Department of Housing & Urban Development's (HUD) Fair Market Rent (FMR) data. For instance, the FMR for a 2-bedroom unit in this area is $1050.0 per month. If your actual housing costs are around or below this figure, they are likely to be considered reasonable. If your costs significantly exceed this, you may need to provide additional justification, leveraging the guidance in Internal Revenue Manual (IRM) 5.15.1.10, which addresses deviations from standard allowances.
To qualify for Currently Not Collectible (CNC) status in Texas, you must demonstrate to the IRS that you lack the financial ability to pay your tax debt. This process typically begins by completing and submitting IRS Form 433-A, Collection Information Statement. On this form, you will detail your income, assets, and allowable living expenses, which are measured against the IRS National and Local Collection Financial Standards. For example, a single Texarkana resident's allowable expenses would include $812 for food, clothing & other, $75 for healthcare (under 65), and $858 for transportation (one car). If your total allowable expenses, including a reasonable housing amount (like the $1050.0 HUD FMR for a 2-bedroom unit), exceed your monthly income, the IRS may place your account in CNC status, temporarily halting collection efforts as per IRM 5.16.1.
When the IRS issues a wage levy (Form 668-W) in the Texarkana, TX-Texarkana, AR HUD Metro FMR Area, the amount taken from your paycheck is not a fixed percentage like state garnishments. Instead, the IRS calculates a specific exempt amount based on your filing status and the number of dependents you claim. This calculation is detailed in IRS Publication 1494. For 2025, a single individual with zero dependents has a monthly exempt amount of $1096.67. If that same single individual claims one dependent, their monthly exempt amount increases to $1680.0. For a married individual filing jointly with one dependent, the exempt amount is $2286.67. Only income exceeding this calculated exempt amount is subject to the levy, ensuring a portion of your wages remains to cover basic living expenses.
If your rent in the Texarkana, TX-Texarkana, AR HUD Metro FMR Area exceeds what the IRS typically allows, particularly given the 'N/A' status for specific housing standards, you have avenues to argue for a higher allowance. The IRS will consider your actual expenses, provided they are deemed reasonable. The HUD Fair Market Rent (FMR) for a 2-bedroom unit in this area is $1050.0, serving as a common benchmark. If your rent is higher, you can present a case for a deviation from standard allowances, as permitted under Internal Revenue Manual (IRM) 5.15.1.10. This requires demonstrating that your higher expenses are necessary and reasonable given your specific circumstances, such as local market conditions or family needs. Providing documentation and a clear explanation is crucial to justify the deviation.
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 clock typically starts from the date the tax was assessed. It's crucial to understand that certain actions can pause or extend this period, such as filing for bankruptcy, requesting an Offer in Compromise (Form 656), or requesting a Collection Due Process (CDP) hearing. However, being placed in Currently Not Collectible (CNC) status does NOT extend the CSED; the 10-year clock continues to run while your account is in CNC. This makes CNC a valuable strategy under IRC §6343, as it can temporarily halt collection efforts, including levies, without prolonging the IRS's overall collection window, potentially allowing the CSED to expire.

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