If you owe tax money, the IRS may turn to wage garnishment as a means of forcing you to pay your dues. They have the administrative powers to do this and do not need court approval.
The IRS will garnish wages if they are not able to locate bank accounts or other assets to pay unpaid tax debts. The IRS is supposed to notify both the taxpayer and the employer via a Notice of Intent to Levy as they start this process. They will send the employer a detailed overview on how much money to deduct from each pay period.
The IRS will calculate how much it will take sometimes well over 80% depending on the circumstances. They are required to leave you a base amount, but this is typically very minimal and most of the time is barely enough for basic needs. The employer is obligated to send a portion of each paycheck back to the IRS until the debt is cleared.
Unfortunately, taxpayers often first are made aware of this process from their employer, which not only causes embarrassment but also puts the taxpayer in the position of scrambling to find a way to live on a very low wage. This never a pleasant experience, and for some, it can be humiliating and destructive.
One solution for IRS wage garnishments is agreeing to an installment plan. Sometimes the IRS will stop garnishing your wages if you negotiate a promise of information, but some need to see documents. In other situations, IRS revenue officers will require a signed agreement before they stop the wage levy. There may be other remedies available too.
At a basic level, the IRS needs to know that you are in compliance. Once this criteria is met and a release is requested in the correct way, they IRS will typically release wage garnishments. This is especially true if you can show that you will not be able to provide your basic needs (rent, food, utilities, medical bills) due to the wage garnishment.
You don’t need to be in debt for life. You don’t need to live with a wage garnishment. If you receive a notice regarding wage garnishment, contact us today.
Our skilled team of understanding professional can help you with IRS negotiations to figure out a way to stop garnishment and come to a reasonable agreement where your monthly payments are much less than what was being garnished. We may also be able to help you negotiate a lower total amount owing on your taxes to help you pay your debt sooner.
We are former IRS attorneys, appeals officers, and auditors who help taxpayers with unpaid tax debts. We offer compassionate, individualized service at manageable rates.
Call today for a confidential consultation. Our number is 713-909-4906.