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IRS Wage Levy & Hardship Relief in Union County, Arkansas

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

Understanding IRS Collection Standards in Union County, Arkansas

When the IRS assesses your ability to pay a tax debt, they meticulously analyze your financial situation using Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals. This process determines your disposable income by subtracting necessary living expenses from your gross income. The IRS relies on a combination of National and Local Standards, derived from comprehensive data provided by the Bureau of Labor Statistics (BLS) and the US Census Bureau, to ensure fairness. For instance, a single individual in Union County, Arkansas, is allocated $812 monthly for food, clothing, and other necessities under National Standards. While specific IRS Local Standards for Housing & Utilities are not available for Union County, AR, the IRS evaluates all expenses against established benchmarks. If your allowable expenses exceed your income, the IRS may determine that an economic hardship exists, potentially leading to a levy release under IRC §6343(a)(1)(D).

Union County, AR Housing & Utilities Allowance vs. HUD Fair Market Rent

The IRS Collection Financial Standards do not provide a specific housing and utilities allowance for Union County, AR. However, taxpayers in Union County can reference the Department of Housing and Urban Development (HUD) Fair Market Rent (FMR) data, which indicates a 2-bedroom unit has an FMR of $950.0 per month for FY2025. This figure represents a more realistic housing cost for the area. If your actual housing expenses, such as the $950.0 for a 2-bedroom residence, exceed the IRS's unstated or implicitly lower allowance, you can petition for a deviation. Internal Revenue Manual (IRM) 5.15.1.10 outlines the procedures for requesting such deviations, requiring clear documentation of your actual necessary expenses. Presenting evidence that your legitimate housing costs align with or exceed HUD FMR data, especially when regional shelter CPI data is not available for direct comparison, significantly strengthens your argument for a higher allowance, which can be crucial in avoiding an IRS levy.

Food, Healthcare & Transportation Allowances for Union County, AR Taxpayers

Beyond housing, the IRS provides National Standards for essential living expenses. For a single person in Union County, AR, the monthly allowance for food, clothing, and other essential items is $812. This increases to $1478 for a two-person household, $1697 for three, and $1983 for a four-person household, with an additional $357 for each extra person, as per the Bureau of Labor Statistics Consumer Expenditure Survey. Healthcare is also covered by National Standards, allowing $75 per person monthly for those under 65 and $153 for those 65 and over, based on the Medical Expenditure Panel Survey. For transportation in Union County, Arkansas, the IRS Local Standards provide for an ownership cost of $588 for one car, plus an operating cost of $270 for the region. This totals $858 for one vehicle ($1446 for two vehicles), reflecting data from the Bureau of Labor Statistics and American Automobile Association (AAA).

Qualifying for Currently Not Collectible (CNC) Status in Arkansas

Achieving Currently Not Collectible (CNC) status in Arkansas means the IRS agrees you cannot afford to pay your tax debt due to financial hardship. To qualify, you must submit a Form 433-A, Collection Information Statement, detailing your income, assets, and all allowable expenses. The IRS then compares your total income to your total allowable expenses, which include National and Local Standards. For example, a single filer in Union County might have allowable monthly expenses totaling $2695 ($950.0 for 2BR housing (using HUD FMR as a proxy), $812 for food/clothing, $75 for healthcare (under 65), and $858 for one-car transportation). If your net disposable income is zero or negative after these allowances, the IRS may classify your account as CNC, preventing enforced collection actions like wage levies (Form 668-W) or bank levies (Form 668-A). IRM 5.16.1 outlines the procedures for CNC determinations, and IRC §6343 mandates the release of levies if economic hardship is found. While CNC status temporarily halts collections, it's critical to remember it does not extend the Collection Statute Expiration Date (CSED) under IRC §6502, which typically limits the IRS to 10 years to collect the debt.

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Frequently Asked Questions

For Union County, Arkansas, the IRS Collection Financial Standards do not explicitly provide a local housing and utilities allowance. Therefore, taxpayers should refer to the HUD FY2025 Fair Market Rent (FMR) data, which indicates a 2-bedroom unit has an FMR of $950.0 per month. While this is not an official IRS allowance, it serves as a strong benchmark for reasonable housing costs. If your actual, necessary housing expenses exceed this, or if you can demonstrate that your housing costs are essential and unavoidable, you can request a deviation from the standard, as outlined in IRM 5.15.1.10. Documenting your expenses thoroughly is crucial for such a request.
To qualify for Currently Not Collectible (CNC) status in Arkansas, you must demonstrate to the IRS that you lack the ability to pay your tax debt without experiencing financial hardship. This process begins by filing IRS Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals, providing a comprehensive overview of your income, assets, and all monthly living expenses. The IRS will compare your income against their National and Local Standards for expenses, such as the $812 for a single person's food/clothing or the $858 for one-car transportation in Union County. If your disposable income after these essential expenses is zero or negative, your account may be placed into CNC status under IRM 5.16.1. This action prevents enforced collection efforts, including levies under IRC §6331, although interest and penalties may continue to accrue.
When the IRS issues a wage levy (Form 668-W) in Union County, Arkansas, the amount they can seize from your paycheck 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 example, a single individual with zero dependents can protect $1096.67 per month from an IRS wage levy in 2025. A married individual filing jointly with one dependent can exempt $2286.67 per month. Any income exceeding these exempted amounts is subject to the levy. Unlike state wage garnishments which often cap at 25% of disposable earnings, IRS levies have a unique calculation that directly exempts a fixed sum for your basic living needs, ensuring a minimum amount of income remains for the taxpayer.
If your rent in Union County, AR, exceeds the unstated IRS housing allowance, or even the HUD FY2025 Fair Market Rent of $950.0 for a 2-bedroom unit, you have the right to request a deviation. The IRS recognizes that local economic conditions can vary, and taxpayers may incur necessary expenses higher than the standard allowances. As per IRM 5.15.1.10, you must provide clear, compelling documentation, such as lease agreements, utility bills, and proof of payment, to justify your actual housing costs. Emphasize that these expenses are essential and cannot be reduced without causing undue hardship. A well-substantiated deviation request can increase your allowable expenses, reduce your calculated disposable income, and potentially prevent or release an IRS levy under IRC §6343.
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 is crucial to understand that certain actions can pause or extend this period. For example, filing for bankruptcy, requesting an Offer in Compromise (Form 656), or being placed into Currently Not Collectible (CNC) status will generally toll (pause) the CSED. While CNC status temporarily stops active collection efforts, it does not erase the debt, nor does it typically extend the 10-year collection window, allowing the statute to continue running unless specific actions are taken that cause a tolling. It is vital to monitor your CSED when dealing with the IRS.

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