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May 10, 2019
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Tax Levy | IRS Garnishment | Los Angeles |Flat Fee Tax Service
Updated: Sep 18, 2019
Stop an IRS Garnishment - Tax Levy in One Day
You may have heard of a wage garnishment in child support and civil lawsuits, but did you know that the Internal Revenue Service (IRS) and state departments of revenue (Franchise Tax Board) can garnish your wages—in some cases taking your entire paycheck—if you owe back taxes?
Unfortunately for taxpayers, both the State of California and the IRS have the authority to take extreme measures such as wage garnishment (#IRSgarnishment) in cases where taxes are overdue. Unlike wage garnishments resulting from a civil judgment, an IRS garnishment on your wages or bank account(s) can be put into effect without a court order. Also, unlike other types of debt that have a 5-year statute of limitation on collections, the California Franchise Tax Board (FTB) has up to 20 years to collect back taxes.
If your family is living paycheck-to-paycheck, or you have significant expenses such as extensive medical needs, the possibility of two decades of wage garnishment can devastate your family’s current and future financial stability.
What exactly is an IRS Garnishment?
An administrative wage garnishment, or IRS garnishment, is when the state taxing authority or IRS enforces collection action on a taxpayer who owes back taxes. A tax levy or garnishments are continuous and aggressive. A tax levy can be devastating to the taxpayer whose wages are being seized. There are very few restrictions once one has been ordered. The FTB or IRS will continue to garnish your wages until the full amount of your debt is cleared, often leaving you with very little of your paycheck for other expenses.
More About State and Federal Wage Garnishments.
Did you know that the IRS can levy your Social Security check? They can and they will. The IRS has what is called the Federal Payment Levy Program (FPLP). With this type of tax levy, the IRS can automatically seize an automatic 15% of your Social Security, Disability or Veteran's Pension.If your benefits are subject to garnishment because of an outstanding tax debt, it is critical to establish a resolution before a garnishment is in place, especially when the tax debt is owed to the state. As everyone knows, the State of California is broke. They want your money very badly. The FTB plays "hard ball".
Depending upon the state, up to 40 percent of your gross income can be garnished.
Under federal law, the IRS is allowed to take the following percentages from your wages until your debt is fully paid:
If you have a W-2, it can take all of your wages except for $197 a week. If you have 1099 income, the IRS can take 100% of your earnings, without leaving you anything.
THE IRS HAS WHAT IS CALLED A "MANUAL LEVY". ALL IT TAKES IS A SIGNATURE FROM A REVENUE OFFICER AND 100% OF YOUR CHECK WILL BE CONFISCATED.
Bottom Line: Do you want to keep your money or not? If you do, call Flat Fee Tax Service immediately.