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Wasatch County, Utah IRS Wage Levy & Hardship Assistance

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

Understanding IRS Collection Standards in Wasatch County

When the IRS assesses your ability to pay a tax debt, they utilize a detailed financial analysis based on your income and allowable expenses. For taxpayers in Wasatch County, Utah, this process often involves submitting Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals. The IRS calculates your disposable income by applying a combination of National and Local Standards, derived from data sources like IRS.gov Collection Financial Standards, the Bureau of Labor Statistics (BLS), and the US Census Bureau. These standards ensure a taxpayer retains funds for basic living necessities, preventing economic hardship as outlined in IRC §6343(a)(1)(D). For instance, the National Standard for a single person's food allowance is $812 per month. Understanding these precise figures is critical for negotiating an Offer in Compromise or establishing a reasonable Installment Agreement, providing a clear path to resolving your tax debt in Wasatch County.

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

For Wasatch County, Utah, the IRS does not publish a specific Local Standard for Housing and Utilities. In such cases, the IRS considers a taxpayer's actual, reasonable housing and utility expenses as part of their allowable monthly expenses during the collection information statement process (Form 433-A). This is a critical distinction, as it allows for a more personalized assessment of your financial situation. For context, the US Department of Housing & Urban Development (HUD) reports the FY2025 Fair Market Rent for a 2-bedroom unit in this area as $1650.0 per month. If your actual, reasonable housing costs exceed what the IRS might typically allow in other areas with published standards, you can argue for a deviation under Internal Revenue Manual (IRM) 5.15.1.10. While regional shelter Consumer Price Index (CPI) data is not available for Wasatch County, the high HUD FMR underscores the importance of accurately documenting your actual housing costs to the IRS.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS provides National Standards for essential living expenses, applicable to Wasatch County residents. The National Standards for Food, Clothing, and Other Necessities, based on the BLS Consumer Expenditure Survey, provide a monthly allowance ranging from $812 for a single person to $1983 for a family of four. For healthcare, the IRS allows $75 per person under 65 and $153 per person 65 and over monthly, derived from the Medical Expenditure Panel Survey. For transportation in Wasatch County, the IRS Local Standards (based on BLS data and AAA operating costs) allow for significant expenses: $588 per month for one owned car (ownership costs) plus an additional $270 per month for operating costs in this region, totaling $858 per month for one vehicle. For two vehicles, the allowance is $1176 for ownership plus $270 operating per vehicle, totaling $1446. These specific allowances are crucial for accurately completing Form 433-A and demonstrating your true ability to pay.

Qualifying for Currently Not Collectible (CNC) Status in Utah

Achieving Currently Not Collectible (CNC) status in Wasatch County, Utah, means the IRS has determined you lack the financial capacity to pay your tax debt. To qualify, you must file Form 433-A, detailing your income, assets, and expenses. The IRS then compares your total income to your total allowable expenses, using the National and Local Standards. For a single filer in Wasatch County, a typical calculation might include: $1510.0 for a 1-bedroom apartment (HUD FMR as an example of reasonable housing), $812 for food (National Standard), $75 for healthcare (National Standard, under 65), and $858 for transportation (Local Standard, 1 car). If your total allowable expenses exceed your net income, you may qualify for CNC status under IRM 5.16.1. This status can lead to the release of an IRS levy under IRC §6343(a)(1)(D) due to economic hardship. Importantly, while CNC status pauses active collection, it does not extend the Collection Statute Expiration Date (CSED), which is generally 10 years from the assessment date under IRC §6502.

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Frequently Asked Questions

For Wasatch County, Utah, the IRS does not publish a specific Local Standard for Housing and Utilities. Instead, the IRS will consider your actual, reasonable housing and utility expenses when determining your ability to pay, as documented on Form 433-A. This approach allows for a more accurate reflection of local costs. For reference, the HUD FY2025 Fair Market Rent for a 2-bedroom unit in Wasatch County is $1650.0 per month. If your actual, necessary housing costs are higher than what might be expected in other areas with published standards, you have a strong basis to argue for those specific expenses under IRM 5.15.1.10, which allows for deviations from standard allowances when justified by individual circumstances.
To qualify for Currently Not Collectible (CNC) status in Utah, you must demonstrate to the IRS that you cannot afford to pay your tax debt after covering your necessary living expenses. This process begins by accurately completing and submitting IRS Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals. The IRS will review your income, assets, and allowable expenses, utilizing National Standards (e.g., $812 for a single person's food) and Local Standards (e.g., $858 for one car transportation in Wasatch County). If your total allowable expenses exceed your total net income, the IRS may place your account in CNC status under IRM 5.16.1. This provides temporary relief from active collection, including potential levy releases under IRC §6343(a)(1)(D) due to economic hardship.
When the IRS issues a wage levy (Form 668-W), a portion of your earnings is exempt from the levy to ensure you have funds for basic living expenses. For 2025, IRS Publication 1494 specifies these monthly exempt amounts. For example, a single taxpayer with zero dependents has $1096.67 exempt from levy each month. A single taxpayer with one dependent has $1680.0 exempt. For a married individual filing jointly with zero dependents, the exempt amount is also $1096.67, increasing to $2286.67 with one dependent. Any earnings above these exemption amounts are subject to the levy. Utah follows federal Consumer Credit Protection Act (CCPA) limits, which state that generally no more than 25% of your disposable earnings, or the amount by which your disposable earnings exceed 30 times the federal minimum wage, can be garnished, though IRS levies often have higher priority.
Since the IRS does not provide a specific housing standard for Wasatch County, Utah, your actual, reasonable housing and utility expenses are considered. This is a crucial point for taxpayers. If your rent, for example, is $1650.0 for a 2-bedroom unit, as indicated by HUD FY2025 Fair Market Rent data for the area, and this is a necessary expense, the IRS will typically allow it. If your expenses are higher than what the IRS might otherwise allow in an area with a published standard, you can request a deviation under IRM 5.15.1.10. This provision allows for the inclusion of actual, necessary expenses that exceed standard allowances, provided you can substantiate them. It's vital to document all your housing and utility costs thoroughly on Form 433-A.
The IRS generally has 10 years to collect a tax debt, a period known as the Collection Statute Expiration Date (CSED), as mandated by IRC §6502. This 10-year clock typically begins from the date the tax was assessed. It's crucial to understand that while certain actions, such as filing for bankruptcy or an Offer in Compromise (Form 656), can pause or extend the CSED, obtaining Currently Not Collectible (CNC) status under IRM 5.16.1 does not extend this 10-year collection window. If your account is in CNC status, the IRS will temporarily cease active collection efforts, but the CSED continues to run, meaning the debt may eventually expire if the IRS cannot resume collection before the statute runs out. This makes CNC status a strategic option for managing an unpayable tax debt.

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