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Stop IRS Garnishment | Flat Fee Tax Relief | San Diego
Updated: Jul 22
IRS TAX DEBT HELP - WHAT IF YOU OWE THE IRS
Most taxpayers who file their taxes get money back in refund form as a result. Getting a tax refund isn't always possible. If you have been collecting unemployment along with the $600.00 federal "kicker" and you haven't had taxes taken out will result in a tax debt.
If your earnings increased a lot but you never adjusted your withholding, you could have an underpayment on your hands, which means you owe the IRS money, and soon. You're required to pay your tax bill by the filing deadline, which, this year, was yesterday, July 15.
But what if you don't have the funds available to pay that sum? You can't ignore an outstanding tax bill, because if you do, you may be in for an unpleasant surprise: garnished wages (#IRSwagegarnishment).
There are very serious consequences involved when you're stuck with a tax debt you are unable pay. When you have an IRS tax debt, you will be charged a late payment penalty equal to 0.5% of your unpaid taxes for each month or partial month you don't pay, up to a total of 25%. Interest will also be added to the unpaid sum.
The additional egregious penalties and interest isn't the end of your IRS problems. If you don't make any effort to pay the IRS what you owe, the agency has the right to come after your wages and/or bank accounts. Furthermore, whereas most creditors need a judgment to be entered against you in court to move forward with a garnishment, the IRS does not. Therefore, if you owe money on your taxes, you can't just neglect tax problem and hope it will go away. The IRS has ten (10) years from the date of assessment to collect a tax debt. That's a long time.
The IRS can't start seizing and garnishing your wages out of the blue. The agency will first send you a notice and give you an opportunity to pay your debt. But if you don't, the IRS will start taking money out of your incoming paychecks to get itself paid.
Here's the catc (there's always a catch), the IRS can send the Notice to Levy (IRS Final Notice) to any address they may have on file for you. The IRS only has to send a Final Notice once. In other words, you may never actually receive the Notice to Levy.
Now that's all pretty scary, but here's some good news: One simple move on your part could help you avoid losing money to wage garnishment. You can reach out to the IRS on your own and get on a payment plan (known as an installment agreement). You'll pay a fee in exchange, and you'll continue to accrue interest and penalties on the sum you owe, if you have an installment plan in place, and you stay current on the payments it calls for, the IRS won't come after your wages at all.
Just because the you can get into an Installment Agreement with the IRS doesn't mean that the payment plan you agree to is the best deal you can get. The IRS would prefer that you represent yourself.
Here are your tax debt options:
Call the tax professionals at Flat Fee Tax Service to find out how you can best handle your IRS tax debt. The consultation is free so there is no obligation on your part.
The tax professionals at Flat Fee Tax Service provide valuable IRS tax debt help at a very affordable fee. Our teams are located in San Diego, California, and Clearwater, Florida. It is entirely unnecessary to visit our offices due to COVID-19. All of our IRS work has been accomplished via phone, email, and fax for more than a decade.