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How to Stop or Release an IRS Garnishment | Tax Levy | Flat Fee Tax Service

Updated: Nov 22, 2019

How to Stop or Release an IRS Wage Garnishment - Tax Levy When a final notice of intent to levy is sent out by the IRS, you have 30 days to do "something". If you do not reach out to the IRS by that deadline or request a hearing, the agency can inform your employer to seize your money and move forward with the IRS garnishment (#IRSwagegarnishment) or wage levy. The tax garnishment continues until you pay the tax debt in full, you set up a settlement with the IRS, or until the arrival of Collection Statute Expiration Date for tax years that carry a liability. Fortunately for you, there are some resolutions to have your IRS garnishment stopped and released.

The best resolution or resolutions, or the best course of action, is mostly based on your total balance, as well as your tax compliance (your unfiled tax returns will have to be filed) and financial situation. In almost all the options below, you will need to be current on all your tax filings. You will need to file all tax returns required before the IRS will consider doing anything with you.

Ways to Stop or Release an IRS Garnishment, Wage Levy (Tax Levy)

THE NUMBER 1 WAY TO STOP OR RELEASE AN IRS GARNISHMENT IS THIS: CALL FLAT FEE TAX SERVICE Below are procedures if you choose to DIY (Do It Yourself) Request a Collection Due Process Hearing A Collection Due Process or CDP hearing is a procedure of the IRS Office of Appeals. It is an independent organization within the IRS that is separate from the collection office that initiates the tax garnishment (wage levy).  If the IRS sends you a final notice of their intent to levy, you can request a CDP hearing 30 days from the date of the IRS’s notice of your right to a hearing.  If you move forward with a CDP hearing, collection activity will usually cease (exceptions for jeopardy, a federal contractor, DET, and state refund levies).

You need to fill out IRS Form 12153 and send it to the address on the letter or the IRS revenue officer on your case. As you wait for your hearing,  it is a good idea to work with a tax professional who can represent you and work out a tax resolution with the IRS on your behalf.

If you don’t propose a collection alternative, or offer a defense (e.g., innocent spouse relief) or claim hardship (discussed below), the tax garnishment can resume once the IRS issues a determination. See IRS publication 1660 for more information.

File for an Offer in Compromise An Offer in Compromise is a “collection alternative” the IRS will accept (if approved) to stop or release an IRS garnishment (tax levy). Offers in Compromise will settle your tax debt for much less than you owe. You will have to apply for this option. It can be difficult, and you may want to get professional help. FLAT FEE TAX SERVICE HAS A 96% OFFER IN COMPROMISE APPROVAL RATE. READ REAL OFFER IN COMPROMISE SUCCESS STORIES Enter into a Payment Plan or Installment Agreement The IRS has various payment plans (#IRSinstallmentagreement), often referred to as Installment Agreements. You can work with a licensed tax professional or call the number on your levy notice. An installment agreement requires you to make monthly payments to the IRS. Once the IRS approves your payment plan, you are in good standing, and the IRS garnishment on your wages and/or bank account(s) stop. Prove Financial Hardship - Currently not Collectible If you can prove that the tax levy causes financial hardship, the IRS will declare you as Currently not Collectible (uncollectible). The agency will temporarily pause all collection actions until your financial situation improves. Currently not Collectible status will usually last for 18 to 24 months before the IRS revisits your financial status. To receive uncollectible status, you have to provide a lot of detailed financial information to the IRS. You will lose any tax refunds will be seized by the IRS and applied to your tax debt. The IRS will file a federal tax lien. If you owe less than $10,000 being Currently not Collectible is probably the best option. If you owe more than $10,000, do an Offer in Compromise. After all, the IRS has already admitted you cannot pay your tax debt.


Ways to Negate the Effect of the Wage Levy - Tax Garnishment

Reduce Your Income Enough to Be Declared Currently not Collectible (Uncollectible) If you don’t qualify for hardship status under your current salary, you can cut back on hours until you fall below the threshold. Be careful with this option—if the IRS can’t garnish your wages, it may try to seize your bank account or other assets. Most importantly, having less income is not going to help your situation.

Change Employers or Temporarily Quit Your Job

PLEASE DO NOT DO THIS. YOU DON'T NEED TO QUIT YOUR JOB. - Quitting your job is an option, but not a good one. Some people even quit their jobs or move to another employer to avoid the tax garnishment - wage levy.

Do not listen to people who have no idea what they are talking about. Don't assume that the IRS or state will take months to find them. Unfortunately, this is not a great idea. As soon as the IRS realizes that another employer is paying you, the IRS garnishment - tax levy will start up again.

A wage garnishment is one of the IRS’s most serious collection actions.

If you have received a final notice to levy or if the wage levy - tax garnishment has already started, you should get help from a tax professional as soon as possible.








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