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Winston County, Alabama IRS Wage Levy & Hardship Assistance

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

Understanding IRS Collection Standards in Winston County, AL

When facing IRS enforced collection actions in Winston County, Alabama, understanding the IRS Collection Financial Standards is crucial. The IRS uses these standards, outlined on Form 433-A (Collection Information Statement for Wage Earners and Self-Employed Individuals), to determine a taxpayer's ability to pay and calculate their disposable income. These standards are divided into National and Local categories, derived from extensive data by IRS.gov, the Bureau of Labor Statistics (BLS), and the US Census Bureau. For a single individual in Winston County, the National Standard for Food, Clothing, and Other Necessities is $812 per month. Notably, specific housing and utilities allowances for Winston County are currently listed as N/A by the IRS. The IRS's goal is to allow taxpayers sufficient funds for basic living expenses before enforced collection, recognizing 'economic hardship' as defined by IRC §6343(a)(1)(D), which can prevent or stop a levy.

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

For taxpayers in Winston County, AL, the IRS Collection Financial Standards currently list Housing and Utilities allowances as N/A for all household sizes. This means the IRS does not provide a pre-set allowable amount. Instead, taxpayers must substantiate their actual, reasonable housing and utility expenses, which are then subject to review. This situation makes referencing the US Department of Housing & Urban Development (HUD) FY2025 Fair Market Rent (FMR) data highly relevant. For example, the HUD FMR for a 2-bedroom unit in Winston County is $930.0 per month. If your actual housing costs exceed what the IRS might typically allow in other areas with published standards, you can request a deviation under Internal Revenue Manual (IRM) 5.15.1.10. This deviation process allows the IRS to consider higher actual expenses if they are necessary and reasonable. While regional shelter CPI data is not available for Winston County, AL, the absence of a specific IRS standard emphasizes the importance of documenting your actual housing costs.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS provides National and Local Standards for other essential living expenses. For food, clothing, and other necessities, a single individual in Winston County, AL, is allowed $812 per month, while a family of four is allowed $1983 per month, based on the Bureau of Labor Statistics Consumer Expenditure Survey. Healthcare is covered by National Standards for out-of-pocket medical expenses, allowing $75 per month for individuals under 65 and $153 per month for those 65 and over, derived from the Medical Expenditure Panel Survey. Transportation allowances for Winston County, AL, are also critical. For a household with one car, the IRS allows $588 for ownership costs and an additional $270 for operating costs, totaling $858 per month. These figures, based on Bureau of Labor Statistics data and American Automobile Association (AAA) operating costs, are crucial when determining a taxpayer's ability to pay their IRS debt.

Qualifying for Currently Not Collectible (CNC) Status in Alabama

For taxpayers in Winston County, AL, who demonstrate they cannot afford to pay their tax debt, the IRS may place their account into Currently Not Collectible (CNC) status. To qualify for CNC, you must file Form 433-A, detailing your income, assets, and expenses. The IRS then compares your total income against your total allowable expenses, using the National and Local Collection Financial Standards. For example, a single filer in Winston County might claim allowable monthly expenses including an estimated $720.0 for 1-bedroom rent (based on HUD FMR), $812 for food, clothing, and other necessities, $75 for healthcare (under 65), and $858 for one-car transportation. This totals $2465.0 in allowable expenses. If your net monthly income is less than this total, you could qualify for CNC status. IRM 5.16.1 outlines the procedures for CNC designation, and once approved, the IRS will generally cease collection actions, including releasing levies under IRC §6343. It's important to remember that while CNC stops active collection, it does not erase the debt, and the 10-year Collection Statute Expiration Date (CSED) under IRC §6502 continues to run.

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Frequently Asked Questions

For Winston County, AL, the IRS Collection Financial Standards for Housing and Utilities are currently listed as N/A for all household sizes. This means there isn't a pre-determined amount the IRS automatically allows. Instead, taxpayers must substantiate their actual, reasonable housing and utility expenses. For reference, the HUD FY2025 Fair Market Rent for a 2-bedroom unit in Winston County is $930.0 per month. If your actual expenses exceed typical allowances or what the IRS might consider reasonable without a specific local standard, you can request a deviation under IRM 5.15.1.10. This allows the IRS to consider higher necessary expenses, provided they are properly documented and justified, preventing an undue hardship.
To qualify for Currently Not Collectible (CNC) status in Alabama, you must demonstrate to the IRS that you lack the financial ability to pay your tax debt. This process begins by submitting Form 433-A, a detailed financial statement. The IRS will then compare your total monthly income against your total allowable monthly living expenses, which are determined by the National and Local Collection Financial Standards. For instance, a single individual in Winston County might have allowable expenses including $812 for food, clothing, and other necessities, $75 for healthcare (under 65), and $858 for one-car transportation. If your verifiable net income is less than your total allowable expenses, your account may be placed into CNC status as per IRM 5.16.1, pausing active collection.
When the IRS issues a wage levy (Form 668-W, Notice of Levy on Wages, Salary, and Other Income) in Winston County, AL, the amount taken from your paycheck is determined by specific federal regulations outlined in IRS Publication 1494 (2025). The IRS is required to leave you with an amount exempt from levy based on your filing status and number of dependents. For example, a single individual with zero dependents will have $1096.67 per month exempt from levy, while a single individual with one dependent will have $1680.0 exempt. For a married couple filing jointly with one dependent, the exempt amount is $2286.67. Any income above these exempt thresholds is subject to the levy, up to 25% of disposable earnings or the amount exceeding 30 times the federal minimum wage, following federal CCPA limits.
Since the IRS Collection Financial Standards currently list the housing and utilities allowance for Winston County, AL, as N/A, your actual, reasonable rent expense is considered. This situation provides a crucial opportunity to substantiate your actual costs. For example, if your family requires a 3-bedroom home, the HUD FY2025 Fair Market Rent is $1220.0 per month. If your rent exceeds this or what might be considered a standard allowance in other areas, you can request a deviation from the standard under IRM 5.15.1.10. This provision allows the IRS to consider higher actual expenses if they are necessary and reasonable for your household's health and welfare. Proper documentation, such as lease agreements and utility bills, is essential to support your claim for higher allowable expenses.
The IRS generally has 10 years to collect a tax debt, a period known as the Collection Statute Expiration Date (CSED), as stipulated by IRC §6502. This 10-year clock typically starts from the date your tax was assessed. It's critical to understand that certain events can pause or 'toll' this 10-year period, effectively extending the time the IRS has to collect. For instance, filing for bankruptcy, submitting an Offer in Compromise (Form 656), or requesting a Collection Due Process (CDP) hearing can all pause the CSED. However, being placed into Currently Not Collectible (CNC) status, as outlined in IRM 5.16.1, does not extend the CSED; the 10-year period continues to run while your account is in CNC status. This makes CNC a strategic option for taxpayers approaching the end of their collection statute.

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