IRS Wage Garnishment: How to Stop It and Get a Fresh Start
Updated: Apr 18, 2019
STOP IRS GARNISHMENT - FRESH START PROGRAM
The IRS has the power to garnish or legally levy and seize any income you make to satisfy federal tax debt on taxes owed to the IRS. An IRS wage garnishment can apply to your hourly wages, salary, commissions, and bonuses.
The IRS tax relief team at Flat Fee Tax Service, Inc. are led by experienced IRS Tax Attorneys (#IRStaxlawyers) can release your wage garnishment in one (1) day in most cases. Our Tax Attorneys will go to work on your case immediately. Call (866) 747-7435 for your free and confidential consultation today. Find out what your IRS tax relief options are.
The IRS will order your employer directly and require them to directly send the IRS a portion of your income. Your employer is required by law to comply with the IRS wage garnishment, typically within one full pay period of receiving the notice from the IRS.
The difference between the IRS and most creditors, however, is that the IRS does not need to take you to court to get a judgment in order to garnish your wages, and the IRS can garnish more of your wages than a regular creditor can garnish.
The IRS wage garnishment is deemed to be "continuous". This means the IRS wage garnishment will continue to take your money until the tax debt is paid in full or the IRS wage garnishment is stopped and released.
The IRS Wage Garnishment Process
When the IRS seeks to levy and garnish your wages for a tax debt that you owe, or use any other legal means to enforce payment of the taxes that you owe, it will first send you a written notice that sets out the amounts that you owe, including the tax, penalties, and interest.
NOTE: YOU DON'T HAVE TO ACTUALLY RECEIVE THE IRS NOTICE. THE IRS IS ONLY REQUIRED TO MAIL THE NOTICE.
This notice should also provide you with a due date by which you must pay the balances in full. Assuming that you do not pay the balance in full, you later will receive another notice, entitled “Final Notice of Intent to Levy,” Once thirty days have passed from the time you have received the final notice, and you still have failed to pay the balance due, the IRS can proceed with garnishing your income.
How Much Can the IRS Garnish From Your Wages?
Most state laws places limits on the amount that a regular creditor can garnish from your wages. However, these normal limits do not apply to the IRS. Rather, the tax code requires the IRS to leave you with a certain amount of income after garnishing your wages to pay your tax debt. The tax code contains a table that corresponds to the number of exemptions that you claim for tax purposes, and sets forth the amount that is necessary for you and your family to pay for basic living necessities. Unfortunately, a garnishment by the IRS can amount to 70% or more of your income.
NOTE: THE IRS CAN HAVE A "MANUAL LEVY" SIGNED AND THIS ALLOWS 100% OF YOUR WAGES TO BE GARNISHED. Stopping IRS Wage Garnishment
There are a number of different ways in which you can resolve your problem with the IRS. In order to avoid or stop a wage garnishment, you must get back into good standing with the IRS, either by paying your balance in full or entering into a tax payment plan or some other type of resolution. Enter Into an Installment Agreement
The IRS will stop a wage garnishment if you enter into an approved installment agreement to pay your tax debt in full over a series of monthly payment installments. As long as you can make the monthly payments and pay off the debt before the debt becomes noncollectable by the IRS, your installment agreement is likely to be accepted by the IRS. Submit an Offer in Compromise
In some cases, you may be able to settle your debt with the IRS for less than the total amount that you actually owe, based on your financial situation. An Offer in Compromise is a selective program and you have financially qualify. However, if you are facing a wage garnishment, you may qualify for this type of IRS tax relief, and your wage garnishment will stop while your case is being reviewed.
90% OF FLAT FEE TAX SERVICE, INC. CLIENTS HAVE RECEIVED AN IRS SETTLEMENT.
PER 2016 IRS STATISTICS, THE IRS APPROVED APPROX. 42% OF ALL IRS OFFER IN COMPROMISE SUBMISSIONS. Be Declared to be Currently not Collectible Due to Financial Hardship
If you can prove to the IRS that a wage garnishment or other collection action would prevent you from meeting the basic needs of you and your family, then the IRS may temporarily cease its collections efforts for months and even years. In this case, you must show that collection of the debt would be unfair because your financial circumstances are so bad. The IRS will require financials. This procedure is called being "Currently not Collectible". You will still have a tax debt. Penalties and interest will continue to added to your tax debt. The IRS can rescind Currently not Collectible status whenever they want. Change Employers (NOT A GOOD IDEA)
If you change employers, your wage garnishment will not proceed, and it will take some time for the IRS to again track your new employer down and reissue a new wage garnishment. This is only a temporary solution, but it can give you a few months of relief. Don't quit your job. Our IRS tax relief team has better alternatives for you. Temporarily Quit Your Job (NOT A GOOD IDEA)
If your employer will allow you to temporarily quit your job for a period of time, and later return to work, then this tactic will slow down the IRS as well. It will take some time for the IRS to discover that you have returned to work at the same employer and reissue a new wage garnishment to that employer. This will really upset the the IRS when they find out. Same as above: call Flat Fee Tax Service, Inc. for better alternatives. File a Tax Levy Appeal
If you disagree with the tax levy / wage garnishment in any way, you can file an appeal, even if it has been more than 30 days since you received the notice of intent to levy.
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