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Navigating IRS Wage Levy & Hardship in Wells County, North Dakota

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

Understanding IRS Collection Standards in Wells County, ND

When facing IRS collection actions in Wells County, North Dakota, understanding the IRS Collection Financial Standards is crucial. These standards determine your ability to pay and are meticulously evaluated by the IRS when assessing your financial condition, typically documented on Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals. The IRS calculates your disposable income by subtracting allowable living expenses, which are derived from National and Local Standards, from your total income. For instance, the National Standards for Food, Clothing & Other allow a single person in Wells County, ND, $812 per month, while a family of four can claim $1,983. These figures, along with other allowances, are critical in demonstrating economic hardship, a key factor for levy release under Internal Revenue Code (IRC) §6343(a)(1)(D). This data is sourced from IRS.gov Collection Financial Standards, which integrates information from the Bureau of Labor Statistics (BLS) and the US Census Bureau.

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

For Wells County, North Dakota, the IRS Collection Financial Standards currently list Housing and Utilities allowances as "N/A." This means the IRS does not have a pre-determined standard amount for housing and utilities in this specific area. Instead, taxpayers in Wells County, ND, are allowed to claim their actual, reasonable housing and utility expenses. This situation can be advantageous for taxpayers, as it allows for a more accurate reflection of their true cost of living. For context, the HUD FY2025 Fair Market Rent data for Wells County, ND, indicates a 2-bedroom unit averages $870.0 per month. If your actual housing costs exceed this, or if you need to demonstrate the reasonableness of your expenses, referencing HUD data can be beneficial. Internal Revenue Manual (IRM) 5.15.1.10, Allowable Expenses, provides guidance on how the IRS considers expenses that deviate from or are not covered by the National or Local Standards. The absence of specific regional shelter CPI data from the Bureau of Labor Statistics for this region further underscores the importance of presenting detailed actual expenses to the IRS.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS provides allowances for other essential living expenses. For food, clothing, and other necessities, the National Standards, based on the Bureau of Labor Statistics Consumer Expenditure Survey, provide a single person in Wells County, ND, with an allowance of $812 per month. This breaks down into $449 for food, $44 for housekeeping supplies, $99 for apparel and services, $45 for personal care products and services, and $175 for miscellaneous items. Healthcare costs are addressed by the National Standards for Out-of-Pocket Healthcare, allowing $75 per person under 65 years old and $153 per person 65 and over monthly, derived from the Medical Expenditure Panel Survey. For transportation in Wells County, ND, the IRS Local Standards, based on BLS data and American Automobile Association operating costs, permit $588 per month for one car ownership and an additional $270 per month for operating costs in this region, totaling $858 per month for a single vehicle.

Qualifying for Currently Not Collectible (CNC) Status in North Dakota

Achieving Currently Not Collectible (CNC) status can provide temporary relief from IRS enforced collection in Wells County, North Dakota. To qualify, you must demonstrate to the IRS that you lack the financial ability to pay your tax debt after accounting for necessary living expenses. This is primarily done by submitting a detailed Form 433-A. The IRS will compare your total household income against your total allowable expenses. For a single filer in Wells County, ND, a calculation might include a reasonable actual housing expense (e.g., using HUD FMR for a 1-bedroom at $790.0), plus $812 for food/clothing, $75 for healthcare (under 65), and $858 for one car transportation, totaling $2,535.0 in monthly allowable expenses. If your income does not exceed these allowable expenses, the IRS may place your account in CNC status. IRM 5.16.1 outlines the procedures for CNC determinations, and IRC §6343 allows for the release of levies due to economic hardship. While in CNC, the IRS generally pauses collection efforts, but it’s crucial to understand that CNC status does not extend the Collection Statute Expiration Date (CSED) of your tax debt, which is typically 10 years from the assessment date under IRC §6502.

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Frequently Asked Questions

For Wells County, North Dakota, the IRS Collection Financial Standards for Housing and Utilities are currently listed as "N/A." This means there isn't a fixed, pre-determined amount the IRS allows. Instead, taxpayers in Wells County, ND, are permitted to claim their actual, reasonable housing and utility expenses. To help demonstrate reasonableness, you can refer to local benchmarks like the HUD FY2025 Fair Market Rent data, which shows a 2-bedroom unit in Wells County averages $870.0 per month. The Internal Revenue Manual (IRM) 5.15.1.10, Allowable Expenses, clarifies how the IRS considers actual expenses when no specific local standard applies or when the standard is insufficient.
To qualify for Currently Not Collectible (CNC) status in North Dakota, you must demonstrate to the IRS that you cannot afford to pay your tax debt after covering necessary living expenses. This process involves submitting a comprehensive Form 433-A, Collection Information Statement, detailing your income, assets, and expenses. The IRS evaluates your financial situation against its National and Local Collection Financial Standards. For example, a single person in Wells County, ND, is allowed $812 for food/clothing, $75 for healthcare (under 65), and $858 for transportation (one car ownership and operating). If your income, after these and other actual reasonable expenses (like housing, given Wells County's N/A standard), leaves no funds available for tax payments, the IRS may grant CNC status under IRM 5.16.1. This status can lead to the release of levies if they cause economic hardship, as per IRC §6343.
When the IRS issues a wage levy, typically via Form 668-W (Notice of Levy on Wages, Salary, and Other Income), it is legally obligated to leave you with a certain amount of your income exempt from the levy. The specific exempt amount depends on your filing status and the number of dependents you claim. According to IRS Publication 1494 (2025), for a single individual in Wells County, ND, with zero dependents, $1,096.67 per month is exempt from levy. If that single individual claims one dependent, the exempt amount increases to $1,680.0 per month. For a married individual filing jointly with zero dependents, the same $1,096.67 is exempt, while with one dependent, it rises to $2,286.67. Any income above these exempt thresholds can be levied by the IRS.
In Wells County, North Dakota, the IRS Collection Financial Standards for Housing and Utilities are listed as "N/A," meaning there is no pre-set maximum. Therefore, if your rent exceeds what might be perceived as a standard amount, you are permitted to claim your actual, reasonable housing expenses. The IRS will assess the reasonableness of these expenses based on your income and overall financial situation. For reference, the HUD FY2025 Fair Market Rent for a 2-bedroom unit in Wells County, ND, is $870.0. If your rent is higher, you should be prepared to explain why it is a necessary and reasonable expense for your household. Internal Revenue Manual (IRM) 5.15.1.10 (Allowable Expenses) specifically addresses situations where local standards are N/A or inadequate, allowing for the consideration of actual, necessary expenses.
The IRS generally has a 10-year period to collect a tax debt, known as the Collection Statute Expiration Date (CSED). This 10-year period typically begins from the date the tax was assessed, as outlined in Internal Revenue Code (IRC) §6502. While the IRS can pursue collection actions like wage levies (Form 668-W) and bank levies (Form 668-A) within this timeframe, certain events can pause or extend the CSED. For instance, being placed in Currently Not Collectible (CNC) status under IRM 5.16.1 generally pauses active collection but does not extend the CSED. However, submitting an Offer in Compromise (Form 656) or filing for bankruptcy can legally suspend the CSED, giving the IRS more time to collect. Understanding your CSED is a critical component of any IRS tax resolution strategy.

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