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Navigating IRS Wage Levy and Hardship in Union County, Pennsylvania

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

Understanding IRS Collection Standards in Union County, PA

When the IRS evaluates a taxpayer's ability to pay, particularly after an enforced collection action like a wage or bank levy (Form 668-W or Form 668-A), they utilize specific financial benchmarks known as Collection Financial Standards. These standards are crucial for determining disposable income and eligibility for relief options, such as Currently Not Collectible (CNC) status under IRC §6343(a)(1)(D) due to economic hardship. Taxpayers in Union County, PA, must complete Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals, to detail their income and expenses. The IRS assesses National Standards for categories like Food ($812 for a single person) and Local Standards for Transportation. These figures, derived from comprehensive sources like IRS.gov Collection Financial Standards, Bureau of Labor Statistics (BLS), and US Census Bureau data, dictate what the IRS considers necessary living expenses, directly impacting your ability to pay your tax debt.

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

For Union County, Pennsylvania, the IRS Collection Financial Standards currently do not specify a Local Housing and Utilities allowance, showing as $N/A across all household sizes. This absence means the IRS typically defaults to the National Housing Standard if no local figure is provided, or allows for actual necessary expenses. However, a more relevant benchmark for taxpayers in Union County is the Department of Housing and Urban Development (HUD) Fair Market Rent (FMR) data. For instance, the HUD FY2025 FMR for a 2-bedroom unit in this area is $1060.0 per month. If a taxpayer's actual housing costs exceed the IRS's unstated or national standard, they can request a deviation, as outlined in Internal Revenue Manual (IRM) 5.15.1.10. This is a critical point for demonstrating economic hardship, especially when considering that regional shelter Consumer Price Index (CPI) data is not specifically available for this region from the Bureau of Labor Statistics, making the HUD FMR a powerful justification for necessary expenses.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS Collection Financial Standards provide specific allowances for other essential living expenses. For food, clothing, and other necessities, National Standards are applied, ranging from $812 for a single individual to $1983 for a family of four, based on Bureau of Labor Statistics Consumer Expenditure Survey data. This includes $449 for food, $44 for housekeeping supplies, $99 for apparel and services, $45 for personal care products, and $175 for miscellaneous items for a single person. Healthcare is addressed by National Standards for out-of-pocket medical expenses, set at $75 per person monthly for those under 65 and $153 for those 65 and over, derived from the Medical Expenditure Panel Survey. For transportation in Union County, the Local Standards allow $588 per month for one owned car (ownership costs) and an additional $270 per month for operating costs in this specific region, totaling $858 for one vehicle. These figures, sourced from BLS data and American Automobile Association operating costs, are non-negotiable without a valid deviation request.

Qualifying for Currently Not Collectible (CNC) Status in Pennsylvania

Achieving Currently Not Collectible (CNC) status in Pennsylvania means the IRS has determined you lack the financial ability to pay your tax debt. To qualify, you must submit Form 433-A, detailing your income, assets, and allowable expenses. The IRS then compares your total monthly income against the sum of your allowable National and Local Standards. For example, a single filer in Union County might justify monthly expenses of $1060.0 for a 2-bedroom housing unit (using HUD FMR as a reasonable actual expense), $812 for food and other necessities, $75 for healthcare, and $858 for one vehicle's transportation costs. If your total allowable expenses exceed your net disposable income, you may qualify for CNC. IRM 5.16.1 outlines the procedures for CNC determinations, and if approved, the IRS will release any existing levies under IRC §6343. Importantly, while CNC status temporarily halts active collection, it does not stop the accrual of interest and penalties, nor does it extend the Collection Statute Expiration Date (CSED) under IRC §6502, which is generally 10 years from the assessment date of the tax.

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Frequently Asked Questions

For Union County, Pennsylvania, the IRS Collection Financial Standards explicitly state 'N/A' for Local Housing and Utilities allowances across all household sizes. This means there isn't a pre-defined standard amount the IRS automatically applies. Instead, taxpayers must justify their actual, necessary housing expenses. A strong reference point is the HUD FY2025 Fair Market Rent (FMR) data, which indicates a 2-bedroom unit in Union County has an FMR of $1060.0 per month. When completing Form 433-A, taxpayers should list their actual rent or mortgage payments. If these expenses are reasonable and necessary, even if they exceed a national standard (if applied), the IRS may allow them, especially if supported by the HUD FMR data, to demonstrate a lack of ability to pay.
To qualify for Currently Not Collectible (CNC) status in Pennsylvania, you must demonstrate to the IRS that you lack the financial resources to pay your tax debt. This process begins by filing IRS Form 433-A, Collection Information Statement, providing a detailed breakdown of your income, assets, and monthly expenses. The IRS will compare your net disposable income with your allowable expenses based on National and Local Standards. For instance, a single individual's basic monthly allowances include $812 for food, clothing, and other items, $75 for healthcare (if under 65), and $858 for one car's transportation costs in Union County. If your total necessary expenses, including a reasonable housing amount (such as the HUD FMR of $1060.0 for a 2BR in Union County), exceed your income, the IRS may place your account in CNC status, suspending active collection efforts under IRM 5.16.1. This status is reviewed periodically, and the IRS can release levies under IRC §6343 once CNC is granted.
When the IRS issues a wage levy (Form 668-W) in Union County, PA, the amount they can take is determined by specific exemptions outlined in IRS Publication 1494. These exemptions are designed to leave you with enough income for basic living expenses. For example, a single individual with no dependents has $1096.67 per month exempt from levy in 2025. If that single individual claims one dependent, the exempt amount increases to $1680.0 per month. For a married individual filing jointly with no dependents, the exemption is also $1096.67, rising to $2286.67 with one dependent. Any income above these exempt amounts is subject to the levy. These federal limits supersede state wage garnishment laws in Pennsylvania, which follow the federal Consumer Credit Protection Act (CCPA) limits of 25% of disposable earnings or the amount above 30 times the federal minimum wage.
If your rent or mortgage payments in Union County, Pennsylvania, exceed the IRS's standard allowances, you still have options to justify these expenses. Since the IRS Collection Financial Standards indicate 'N/A' for Local Housing and Utilities in Union County, taxpayers can typically claim their actual, necessary housing expenses. For example, the HUD FY2025 Fair Market Rent for a 2-bedroom unit in Union County is $1060.0, which can serve as a strong justification for reasonable housing costs. If your actual expenses are higher, you can request a deviation from the standard, as detailed in Internal Revenue Manual (IRM) 5.15.1.10. To do this, you must demonstrate that your expenses are necessary, reasonable, and incurred for the health and welfare of your family. Providing documentation like lease agreements or mortgage statements with your Form 433-A is crucial for the IRS to consider your specific financial circumstances and allow for a higher housing expense.
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. While certain actions, such as filing for bankruptcy, submitting an Offer in Compromise (Form 656), or requesting a Collection Due Process (CDP) hearing, can pause or extend the CSED, being placed in Currently Not Collectible (CNC) status does not. If your account is in CNC status, the collection clock continues to run, meaning the IRS's ability to collect the debt will still expire after 10 years from assessment, even if you haven't paid. Understanding your CSED is a critical component of any long-term tax resolution strategy, as a debt uncollectible after this period is generally eliminated. This makes CNC a powerful strategy for taxpayers who cannot pay their debt within the statutory period.

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