- dave rosa
Stop IRS Tax Levy | Affordable Tax Relief | Flat Fee Tax Service | San Diego
Updated: Jun 15
The IRS has the power to garnish or legally seize any income you make to satisfy federal tax debt or taxes owed. An IRS Garnishment (IRS tax levy) can apply to your:
1. Hourly Wages
2. Salary
3.Commissions
4. Bonuses 5. 100% for 1099
6. 15% of Social Security and Veteran Pensions
The IRS will order your employer directly and require them to directly send the IRS a portion, if not all, of your income. Your employer is required by law to comply with the IRS 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 Garnishment Process (Wage Garnishment)
When the IRS seeks to garnish your wages for a tax debt that is owed, 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. Your employer is compelled to comply with the tax levy. This notice to levy 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 owed, the IRS can proceed with garnishing your income.
The Amount that the IRS Can Garnish From Your Wages
State law has some limits on the amount that a regular creditor can garnish from your wages. However, these normal limits do not apply to the IRS. The IRS can actually garnish 100% of your paycheck. Normally, 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.
PLEASE NOTE: THE IRS WITH A MECHANISM CALLED A "MANUAL LEVY" CAN TAKE ANY AMOUNT THEY WISH. ALL A MANUAL LEVY REQUIRES IS A SIGNATURE FRO A REVENUE OFFICER.
Stopping an IRS Garnishment - Tax Levy - 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 uncollectible by the IRS, your installment agreement is likely to be accepted by the IRS.
Submitting 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. This is a fairly selective program and you have financially qualify. However, if you are facing a wage garnishment, you may qualify for this type of relief, and your wage garnishment will stop while your case is being reviewed.