If tax debts are not paid to the IRS and you have been informed that debts are owed, a levy can be placed on your wages, also known as wage garnishment. This means the IRS has exercised a right over your assets in the form of your wages. Wage garnishment is one of the most common methods the IRS takes against taxpayers who owe tax debt. Unfortunately, many taxpayers don’t seek tax debt resolution until wage garnishment has been levied against them.
Wage garnishment is a frightening experience. Many taxpayers immediately feel a sense of high anxiety, anger, and desperation. It is important to keep in mind that even if you are dealing with wage garnishment, this process can be undone. With financial help from a CPA and attorney experienced with IRS code and law, wage garnishment can be stopped. You can get out from under tax debt and return to your normal routine.
Before the IRS conducts wage garnishment for unpaid federal taxes, a notice of Demand for Payment is delivered to the taxpayer. This notice should be taken seriously, however many taxpayers disregard it or don’t understand it. After this a Final Notice is delivered, which gives the taxpayer 30 days to solve the tax debt problem or make a resolution plan. If no attempt is made to resolve the problem, wage garnishment will follow. When wage garnishment occurs, the IRS takes the case to the taxpayer’s employer and demands that wages be withheld from the taxpayer and delivered to the IRS. This is often an embarrassing and distressing moment for the taxpayer. However, this situation can be successfully resolved with minimal professional problems.
The most important thing to do is to act as quickly as possible and as soon as possible to prevent wage garnishment before it occurs, or to stop it once it has. If you have received a notice of wage garnishment, you can prevent it by filing proper documents and making a plan to pay back your IRS tax debt. When you contact us, we will take immediate measures to organize a payment strategy, contact the IRS, and make a tax relief solution that is based on your needs, not theirs.
Once wage garnishment has occurred, you have options to end it. Which option is best for you depends on your situation. If you are dealing with penalties or interest for the first time, penalty abatement may be an option to reduce your tax debt. If you are unable to pay your tax debt at this time and wage garnishment imposes serious financial hardship on you or your family, you may be eligible to file for currently not collectible. The most common restitution method after wage garnishment is an IRS installment agreement. This allows you to restructure your tax debt and make payments that better suit your situation. Organizing these agreements will allow you to avoid levies and liens not only on your wages, but on your other assets as well.