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Union County, Illinois IRS Wage Levy & Hardship Assistance

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

Understanding IRS Collection Standards in Union County, IL

When the IRS considers enforced collection actions like wage or bank levies in Union County, Illinois, they first assess a taxpayer's ability to pay using IRS Collection Financial Standards. This process typically begins with submitting Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals. The IRS calculates a taxpayer's disposable income by subtracting necessary living expenses, derived from both National and Local Standards, from their gross income. For instance, a single individual in Union County is allowed $812 monthly for food, clothing, and other necessities, based on the IRS National Standards. While specific IRS Local Housing and Utilities Standards are not provided for Union County, IL, the IRS acknowledges that taxpayers must meet basic living costs. If a taxpayer's income is insufficient to cover these essential expenses, the IRS may determine that collection would cause economic hardship, as defined under IRC §6343(a)(1)(D). These crucial standards are meticulously compiled from diverse sources including IRS.gov, Bureau of Labor Statistics (BLS) data, and US Census Bureau American Community Survey data, ensuring a data-driven approach to financial assessment.

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

For taxpayers in Union County, Illinois, navigating IRS collection can be complex, especially concerning housing costs. While the IRS Collection Financial Standards do not list a specific monthly housing and utilities allowance for Union County (indicated as $N/A), taxpayers are still entitled to claim reasonable actual expenses. This is where HUD Fair Market Rent (FMR) data becomes critical. For example, the HUD FY2025 FMR for a 2-bedroom residence in Union County is $920.0 per month. If a taxpayer's actual housing expenses exceed the IRS's unlisted standard (or if no standard is provided), they can request a deviation under Internal Revenue Manual (IRM) 5.15.1.10. This provision allows for the inclusion of actual, necessary expenses that exceed the standard amounts, provided they are substantiated. Demonstrating actual housing costs, particularly when they align with or exceed the $920.0 HUD FMR for a 2-bedroom unit, significantly strengthens an argument for a deviation. Unfortunately, regional shelter CPI (Consumer Price Index) data for Union County is not available from the Bureau of Labor Statistics, which could otherwise provide additional context on local housing cost trends.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS Collection Financial Standards provide specific allowances for other essential living expenses in Union County, Illinois. The National Standards for Food, Clothing, and Other Necessities, derived from the BLS Consumer Expenditure Survey, provide a monthly allowance of $812 for a single person, $1478 for a two-person household, $1697 for three persons, and $1983 for a four-person family, with an additional $357 for each subsequent person. This includes $449 for food, $99 for apparel, and $175 for miscellaneous expenses for a single individual. For healthcare, the IRS allows $75 per person under 65 and $153 per person 65 and over, based on the Medical Expenditure Panel Survey. A family of four, all under 65, would be allowed $300 monthly for out-of-pocket healthcare. Transportation allowances are also critical; for Union County, the IRS Local Standards for Transportation permit $588 for the ownership costs of one car and $270 for operating costs, totaling $858 monthly for one vehicle, based on BLS data and American Automobile Association operating costs. These allowances ensure taxpayers can maintain basic living standards while repaying tax debt.

Qualifying for Currently Not Collectible (CNC) Status in Illinois

For taxpayers in Union County, Illinois facing severe financial distress, Currently Not Collectible (CNC) status offers a temporary reprieve from IRS enforced collection actions. To qualify, taxpayers must demonstrate to the IRS that they lack the ability to pay their tax liabilities due to economic hardship. This determination is primarily made by submitting a comprehensive Form 433-A, Collection Information Statement, which details all income, assets, and necessary living expenses. The IRS then compares the taxpayer's total monthly income against their allowable expenses, which include the National Standards for Food ($812 for a single person), Healthcare ($75 for an individual under 65), and Transportation ($858 for one car, including ownership and operating costs), along with actual necessary housing expenses (e.g., the HUD FMR of $920.0 for a 2-bedroom in Union County, if substantiated). If the calculation results in little to no disposable income, the IRS may place the account in CNC status under IRM 5.16.1. This action leads to the release of any existing levies, as outlined in IRC §6343, and prevents new ones. Crucially, while CNC status stops active collection, it does not extend the Collection Statute Expiration Date (CSED), which is generally 10 years from the date of assessment under IRC §6502.

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Frequently Asked Questions

The IRS Collection Financial Standards do not provide a specific monthly housing and utilities allowance for Union County, IL, listing it as $N/A. However, this does not mean taxpayers are expected to pay taxes without meeting basic housing needs. Instead, the IRS allows for actual, necessary expenses to be claimed, especially when substantiated. For comparison, the HUD FY2025 Fair Market Rent for a 2-bedroom unit in Union County is $920.0 per month. If your actual rent or mortgage and utilities exceed any unlisted standard, you can request a deviation under IRM 5.15.1.10. It is crucial to provide documentation like lease agreements and utility bills to support your actual housing costs, which can significantly impact your ability to pay determination.
To qualify for Currently Not Collectible (CNC) status in Illinois, you must demonstrate to the IRS that you cannot afford to pay your tax debt without experiencing economic hardship. This involves submitting IRS Form 433-A, Collection Information Statement, detailing your income, assets, and all necessary monthly expenses. The IRS will compare your income against their allowable expenses, which include National Standards such as $812 for a single person's food, clothing, and other necessities, and $75 for out-of-pocket healthcare for individuals under 65. If your disposable income after these essential expenses is minimal or negative, the IRS may grant CNC status under IRM 5.16.1. This temporarily halts collection activities, including levies, but interest and penalties continue to accrue, and the tax lien remains in effect until the debt is satisfied or the Collection Statute Expiration Date (CSED) passes.
When the IRS issues a wage levy (Form 668-W) in Union County, IL, the amount they can take is determined by specific exemptions outlined in IRS Publication 1494 (2025). Unlike state wage garnishments that often follow federal CCPA limits of 25% of disposable earnings, IRS levies have fixed exemption amounts based on your filing status and number of dependents. For example, a single individual with zero dependents has a monthly exemption of $1096.67. A single individual with one dependent is exempt $1680.0 monthly. For those married filing jointly with one dependent, the exempt amount is $2286.67 per month. Any income earned above these exemption thresholds is subject to the levy. The IRS will send Form 668-W to your employer, who is legally obligated to withhold the non-exempt portion of your wages and remit it to the IRS.
If your actual rent or mortgage and utilities in Union County, IL, exceed the IRS's unlisted (N/A) local housing standard, you have the right to request a deviation from the standard. For instance, the HUD FY2025 Fair Market Rent for a 2-bedroom unit in Union County is $920.0, which can serve as a benchmark for reasonable housing costs. Under IRM 5.15.1.10, taxpayers can demonstrate that their actual, necessary expenses are higher than the standard amounts. To support such a deviation, you must provide clear documentation, such as current lease agreements, mortgage statements, and recent utility bills. Successfully demonstrating higher actual necessary expenses can significantly reduce your calculated disposable income, making it easier to qualify for an Offer in Compromise or Currently Not Collectible status, ultimately providing relief from enforced collection actions.
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 period typically begins from the date the tax was assessed. However, certain events can pause or extend this collection period. For instance, while an account in Currently Not Collectible (CNC) status halts active collection efforts, it generally does not extend the CSED; the clock continues to run unless other specific actions occur. Other events that can suspend the CSED include filing for bankruptcy, submitting an Offer in Compromise (Form 656), requesting a Collection Due Process (CDP) hearing, or living outside the United States for an extended period. Understanding your CSED is crucial for developing an effective tax resolution strategy.

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