Are you facing wage garnishments from the IRS or a state taxing authority? You should know that collection tactics can be aggressive. What exactly is a wage garnishment? If you owe back taxes, the IRS is legally entitled to directly take money out of every paycheck you earn. This costly and embarrassing penalty can make it difficult for you to maintain a reasonable standard of living. Keep in mind that your employer will have no choice other than to comply if the IRS comes calling. The IRS can and will go after salary, hourly wages, commissions, and bonuses when garnishing your wages.
There could still be time to correct the situation before the IRS dips into your paychecks. Take a look at what you need to know about how to stop wage garnishment.
What is the Process of Wage Garnishment?
If an assessment of your taxes shows that you owe money, the IRS will send you a notice accompanied by something called a demand for payment. You may have failed to pay this invoice at this point because you dispute it or don’t have funds to cover what you owe. Unfortunately, this will prompt the IRS to send you something called a final Notice of Intent to Levy. This means the IRS intends to garnish your wages. It is strongly recommended that you take steps to reach out to the IRS to resolve your issue before money is taken from your paycheck. You could be eligible to get on a payment plan that will provide you with protection from wage garnishments as you work to mend your tax issue.
How to Stop Wage Garnishment
An IRS levy on wages can only be stopped if an alternative resolution is put in place. The most common alternative resolution is a payment plan. In addition, you may be able to make the IRS stop garnishing your wages if your case meets certain criteria. This is one of the reasons why it’s essential to work with tax professionals who can identify causes for exceptions and exemptions. For instance, the IRS may cease garnishment if you can prove that the IRS did not provide you with proper notice or if a collection period has expired.
It is possible to appeal wage garnishments before that first penny is taken by the IRS. You have the option to use a Collections Due Process (CDP) hearing to request an appeal during the 30-day period after receiving your final notice for garnishment from the IRS. You may also be able to enter into some type of agreement with the IRS that will allow you to pay back what you owe over time without having wages siphoned from every paycheck. Here are some options:
- An Installment Agreement could allow you to pay back your full debt through approved monthly installments.
- An Offer in Compromise (OIC) may allow you to settle your debt with the IRS for less than what you owe. Acceptance into this selective program is often based on the amount you owe in relation to your current financial situation.
- You may be able to prove that your debt can’t be collected due to financial hardship. Going with this route will require you to prove that collection actions would stop you from being able to meet your basic needs. It is possible that the IRS will cease collection efforts for months or years.
Each option on the table comes with its own list of requirements. You should be prepared to organize and present financial information for the IRS to review. Having someone by your side who understands all of the options, speaks the language of the IRS, and knows the process of stopping garnishments is essential for utilizing everything available while there’s still time.
Why You Need the Tax Group Center
An IRS wage garnishment is serious. This is exactly why we strongly advise taxpayers against trying to work with the IRS on their own when their paychecks are on the line. We have 30 years of experience helping our clients seek out real and effective tax relief. Our team of licensed tax professionals, CPAs, and lawyers can do everything possible to negotiate with the IRS on your behalf to stop garnishments. In addition, we’ll explore every option possible to get you approved for an installment plan or forgiveness option. We’re passionate about being able to help our clients face the IRS with confidence. Contact the Tax Group Center today if you’re facing an IRS wage levy!
If you receive notice of a wage garnishment, we suggest you contact Tax Group Center immediately. When you hire Tax Group Center, you can be comfortable in knowing that our Tax Team has years of experience in dealing with the IRS. With our tax professionals and CTEC Certified Tax Consultants on your side, you can face the IRS with confidence. Don’t become another IRS statistic.