IRS Wage Garnishment - Tax Levy Help - San Diego - USA
Updated: Jul 5, 2019
IRS Wage Garnishment - San Diego California Tax Levy Help
Every year, the Internal Revenue Service (IRS) sends out nearly two million wage garnishment notices (#IRSwagegarnishments) and notices to levy bank accounts. The Federal Government's official 2016 Fiscal Year Budget boasted that the IRS had collected $56 million from wage garnishments alone in 2014. These IRS enforcement numbers increase every year.
Clearly, if you owe back taxes to the IRS and don’t respond to their payment notices or phone calls, you may be subject to an IRS wage garnishment. Wage garnishment, also referred to as wage attachment or wage levy, is a legal way for those who are owed a debt to withhold a specific sum from an employee’s wages to be paid directly to them.
Wages can be garnished by other agencies or even private parties, but IRS wage garnishments (#IRStaxlevies) aren’t subject to the same rules and regulations as other wage garnishments. For one, no court order is required. In addition, the federal and state regulations pertaining to the amount of wages exempt from garnishment provide exceptions for IRS garnishments.
Understanding the IRS
Understanding key IRS myths, facts and processes empowers your ability to tackle garnishment issues. First and foremost, it is not illegal to owe taxes; but it is illegal not to file your tax return. And if you don’t file, the IRS will file for you (#SubstituteforReturn), usually assessing vastly more taxes than you owe, then seek wage garnishment when you don’t or can’t pay. A Substitute for Return creates a vastly inflated tax debt and gives the IRS enforcement authority to seize assets.
Once you are tax delinquent, the IRS proceeds in three moves. Initially you get the bill, notifying you of what the IRS thinks you owe on what year or return, plus penalties and interest. This is followed by a second bill, tacking on additional interest and penalties. Finally you receive your final notice, after which the IRS yells “we're coming for you" and unleashes their enforcement actions.
IRS Garnishment Rules
It’s typical for the IRS to garnish 70% or more of an employee’s wages, largely in an effort to convince the employee to contact them to resolve the tax debt.
The exact amount of earnings that are exempt from garnishment depends on the garnishee’s tax filing status (single, married, filing jointly, etc.) and number of dependents listed on their tax return. The IRS uses a chart, found at http://www.irs.gov/pub/irs-pdf/p1494.pdf) to determine this amount, based on those factors as well as the employee’s pay periods.
The IRS can seize 100% of your paycheck should a Revenue Officer sign off on a "Manual Levy". Also, the IRS will take 100% of your pay should you be a 1099 independent contractor.
As the most aggressive collection agency in the country, the IRS means business. It collects by levying your property and garnishing your wages. The first reaches your house, car, boat, furniture, stocks, bonds, jewelry, bank accounts and the like. The second, which we analyze in this article, reaches your paycheck through the wage garnishment process.
In general, it’s much easier to prevent rather than stop an IRS wage garnishment. Thus, if you receive a notice from the IRS advising you of tax liability, you can either call the IRS yourself and try to come out on top, or have an experienced IRS Tax Attorney handle your tax debt problems.
Once a wage garnishment is in place, you’ll need to obtain an IRS Wage Garnishment Release to stop the garnishment. One way to obtain this levy release is to simply pay your back taxes that are owed. If you are here reading this information, paying your IRS tax debt is probably not an option.
If you’re unable to pay your tax debt all at once, the IRS will arrange a payment plan with you, and once that’s in place, the garnishment should stop. Depending on the size of your debt, the IRS may require financial statements when arranging your payment plan. Our IRS Tax Attorneys may agree to an IRS Installment Agreement to stop a wage garnishment knowing that our client will never adhere to the Installment Agreement. Our tax relief team may use the IRS rules against them.
A superior tax relief option is to complete an Offer of Compromise. The ultimate IRS settlement agreement is the Offer in Compromise. This is most useful tax relief option. when you’re simply unable to pay the amount owed, whereby you agree to pay the IRS a smaller amount than what’s due for full release from the liability. Our client needs to be qualified and eligible for an Offer in Compromise.
FLAT FEE TAX SERVICE, INC. CLIENTS HAVE A 96% IRS SETTLEMENT SUCCESS RATE.
PER 2016 IRS STATISTICS, THE IRS APPROVED APPROXIMATELY 42% OF THE 80,000 OFFER IN COMPROMISE SUBMISSIONS.
Here is another article that explains the basic outline of resisting IRS wage garnishment orders, and a summary of the different steps that you can accomplish either alone or with the help of tax attorneys:
a. Hire an experienced tax relief professional to contact the IRS to release the tax garnishment as things are worked out (yes, you could try to do it yourself);
b. Address issues that may eliminate the tax owed: file an amended return that includes valid deductions previously overlooked, file your own return if the IRS filed for you (Substitute for Return), or show that the tax due (or part of it) is time-barred or discharged in bankruptcy; and
c. Pursue official methods of resolution known as an Offer in Compromise or an IRS Installment Agreement.
THE IRS TAX ATTORNEYS AT FLAT FEE TAX SERVICE, INC CAN STOP AN IRS GARNISHMENT IN ONE DAY.
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Role of IRS Tax Attorneys in Stopping and Releasing
IRS Wage Garnishments
Wage garnishments can result from many things. These include: the failure to file one or more tax returns, with a resulting IRS tax assessment; a tax audit, with a resulting IRS tax assessment; and the failure to pay past-due taxes, interest and penalties.
Engaging an IRS Tax Lawyer can be very useful in all of these situations. The IRS Tax Attorneys at Flat Fee Tax Service, Inc specialize in releasing IRS garnishments (tax levies), unfiled tax returns (#unfiledtaxreturns), placing taxpayers in Currently not Collectible status, reducing tax debt and IRS settlement agreements through the Offer in Compromise program.
Everyone knows the old adage, “an ounce of prevention is worth a pound of cure." It applies with great gravity in the area of IRS wage garnishments, and an experienced Tax Lawyer can be your “ounce of prevention."
If you’ve failed to file federal tax returns for prior years, our IRS tax relief team can properly prepare and file those missing tax returns for you now, before any tax assessment or garnishment takes place. In doing so, we can optimize your tax saving strategies. We have had many individuals who had failed to file tax returns for many years. Many times our clients had tax credits which resulted in a substantial tax refund.
Sometimes, of course, it is too late for the above prevention options. The IRS may already have issued you a Notice of Intent to Levy your Wages, sent a Garnishment Order to your employer, or started garnishing your wages.
Our IRS Tax Attorneys definitely come into play here. The Tax Lawyers at our tax relief firm can have your your IRS garnishment stopped and released in one day. Flat Fee Tax Service, Inc. work in this area every day and we have good relationships with IRS.
Our IRS Tax Lawyers know the rules, procedures, time deadlines and forms like the back of our hands; and know exactly what to do to stop your tax garnishment. In other words, our IRS tax relief team "knows the in's and out's".
During our free and confidential consultation we will explore all of your tax relief options with you. These tax relief programs may be as simple as filing missing unfiled tax returns, recalculating the past taxes allegedly due, and of course contacting the IRS. The latter is the key. Once our tax relief team contacts the IRS, tax resolution options can be addressed and settlement agreements can be reached, thus resulting in the cessation of the IRS garnishment (and, if wages have already been garnished, sometimes their return).
In short, working with Flat Fee Tax Service, Inc can result in many happy returns.
Good to know
The IRS initiates tax levies / wage garnishments to bring taxpayers to settle their tax debt. In "IRS speak" that means entering into an Installment Agreement, being declared Currently not Collectible or settling your tax debt through the Offer in Compromise program. The IRS will not tell you how to do any of these options. If you need assistance in handling an IRS garnishment, it’s extremely important that you have an experienced IRS Tax Attorney by your side.
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