IRS Wage Garnishment – Can The IRS Garnish Your Wages?
Unlike most collectors, the IRS and state tax authorities have super powers when it comes to tax debt collection. One such power is the power of the IRS wage garnishment without obtaining any court judgment. However, an IRS tax levy or state tax levy to garnish your wages is a tool of last resort if you have chosen to ignore all the previous tax notices and not resolve your tax issues.
The IRS Wage Garnishment Process
When the IRS seeks to garnish your wages for a tax debt that you owe, it will first send you a written notice that sets out the amounts that you owe, including the tax, penalties, and interest. This notice will also provide you with a due date by which you must pay the balances in full. Assuming that you do not pay the balance in full, you later will receive another notice, entitled “Final Notice of Intent to Levy,” Once thirty days have passed from the time you have received the final notice, and you still have failed to pay the balance due, the IRS can proceed with garnishing your income.
Fortunately, with the right IRS representation, there are many options that can be taken to avoid wage garnishment and remove it if after the fact.
How Much Can The IRS Garnish?
State and federal law limit the amount that most creditors can take from your wages. However, the federal tax code limits only what the IRS is required to leave. The IRS will leave you with you an amount that the tax code says is necessary for you to pay for basic living expenses. The amount that is exempt from the IRS wage garnishment is based on the number of exemptions you are eligible to claim and your filing status as determined on IRS Publication 1494.
What To Do If You Have An IRS Wage Garnishment?
As mentioned earlier, an IRS wage garnishment is generally a tool of last resort and there are many options available to deal with the tax debt.
Stopping IRS Wage Garnishment
There are many ways you can prevent or stop a tax levy. The method you use should be determined by your financial and tax situation and consultation with a tax resolution professional. There are many ways to negate the effects of the levy and get back on track to financial freedom including:
- Paying off the tax debt
- Requesting a payment plan or installment agreement
- Enter into “Uncollectible” status due to financial hardship: this entails proving to the IRS through the submission of financial data that collecting your tax debt will not allow you to meet the minimum living standards for you and your family
- Submitting an Offer in Compromise
- Filing for bankruptcy to discharge eligible tax debts: not all tax debt is always eligible to be discharged during bankruptcy, however while bankruptcy proceedings are going on, it will place your IRS wage garnishment on hold
Samaritan Tax Relief Tax Resolution Support
One of your most important rights as a taxpayer is your right to have a qualified tax resolution professional, such as an Enrolled Agent (EA), represent you in front of the IRS and/or States and provide tax resolution.
When you hire Samaritan Tax Relief to represent you with your IRS or state wage garnishment problems, we will guide you through the tax resolution process while advocating on your behalf and protecting your interests.
Depending on the matters involved and the tax resolution option pursued, your case may remain open anywhere from a couple of months to several years. However, as our client, our efforts will be focused on resolving your case as quickly and efficiently as possible.
Samaritan Tax Relief is here to help you because when you’re dealing with a tax issue, the worst thing you can do is to do nothing at all? The best decision is to take the necessary first step and to get help now!
If you are unable to resolve your tax issue without help, you can get help from the tax resolution professionals at Samaritan Tax Relief by starting with a request for a free consultation.
Our goal is to make sure that you pay the least amount of taxes that you are legally liable for. We will not allow you to retain our firm’s services unless you are a good candidate for tax resolution. We let you know up front after a review of your IRS account and other information that you provide to us during a free phone consultation what tax relief options are available for you. Based on this assessment and recommendation, we provide a flat-fee quote based on the scope of work to be performed – that way there are no surprises and you know what is included.
Click on the “Get Help” button at the top of the page to take that first step.