Wage Garnishment

IRS Wage Garnishment

IRS wage garnishment occurs when you owe taxes and the IRS has already contacted you and you have either not responded or continuously defaulted on an IRS payment plan.

If you fail to pay taxes in the United States, the IRS has the power to collect taxes directly from your wages by issuing a wage garnishment without court approval. The IRS is one of the few organizations in the U.S. that is able to garnish wages without any review by a judge.

For salaried employees, almost all of their paycheck will be garnished. The IRS will leave the delinquent taxpayer with a very small amount of money left over.

If you owe taxes, the IRS has the right to seize any real property or personal property you own. Real property includes things such as homes. However, the IRS rarely takes a taxpayer's primary residence. Personal property includes categories such as money held in bank accounts, savings or your paycheck. IRS wage garnishments are considered personal property seizures.

In pursuing an IRS wage garnishment, the IRS is going to let the taxpayer know it is coming. The taxpayer will receive a series of letters prior to a garnishment. Thirty (30) days prior to garnishment, the taxpayer will receive a "Final Notice of Intent to Levy." Thirty (30) days after that notice, the IRS will begin to issue wage garnishments and bank levies.

The amount of the IRS wage garnishment is determined by a formula calculating the tax owed, the number of dependents you claim and other issues beyond the scope of this article.

While you can negotiate with the IRS on your own, it isn't recommended. Everything you say can be used against you and the IRS agents are very good at interrogating taxpayers. A much better way to go is to hire a licensed tax attorney to handle the matter for you. A good tax attorney should be able to get the IRS to completely terminate the wage garnishment in exchange for a payment plan. In certain situations, the tax attorney may recommend pursuing an offer in compromise wherein the IRS will agree to eliminate or dramatically lower your tax debt. Obviously, any of these situations represents a major improvement over having your wages garnished.

It doesn't really matter what steps you take, so long as you take action. A tax professional may be able to get rid of the IRS wage garnishment the same day of hire. Also, by hiring an experienced tax attorney, you can avoid garnishment from occurring.

Call Tax Resolution Professionals for a free consultation with a tax attorney at (888) 515-4TAX. Our phone lines are open 24/7, 365.

State Wage Garnishment

When you receive a garnishment from the state, your options vary depending on the state you live in. In some states, such as California, the garnishment can be removed quickly by a qualified tax attorney with the correct documentation.

Most states allow for wage garnishments to eventually be taken off. However, some states, such as Colorado, do not lift a wage garnishment if they had previously garnished and now are issuing a second garnishment after a default. The garnishment can be usually reduced, but not removed.

Kansas, Missouri, Virginia, and New York are all known to aggressively garnish for past due state income tax. Most states also garnish for past due sales tax debt. Even if you have closed the business, it is possible that you can later be assessed and garnished for state sales tax debt.

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