The IRS has the ability to garnish a taxpayer’s wages for unpaid tax debts. This is within the IRS’s administrative powers. The IRS does not have to obtain court approval to do this.
The IRS frequently pursues wage garnishments when it cannot find bank accounts or other assets that are easy for it to locate and sell to obtain monies to satisfy unpaid tax debts.
Taxpayers often find out about the wage garnishment from their employer. This not only causes embarrassment, but also puts the taxpayer in the position of having to figure out how to deal with paying bills, etc. without the full amount of income that was expected. This problem is exacerbated by the relatively nominal amount that is exempt from the IRS’s wage garnishment.
There are a number of ways to address wage garnishments. We can help with this. We advise clients on collections issues such as wage garnishments daily. Please contact us immediately if the IRS has garnished your wages or you think it will soon.