What is an IRS Wage Garnishment, also known as IRS Wage Levy?
A type of forced collection that is commonly utilized by the IRS is a wage levy. This type of forced collection enables the IRS to get in contact with your current employer and require that they must withhold a certain percentage of your paycheck in order to satisfy the present tax liability. Employers will abide by the IRS’ requests, because if they do not follow the demands, the employee will be held responsible for the amount in taxes they were required to withhold from the paycheck. Until the IRS collected enough to satisfy the amount owed, which includes penalties and interests, or the statute of limitations expires, they will proceed to garnish your wages.
Wage Levy Process, Laws, and Rules
The IRS has a set collection process that must meet certain requirements before the IRS is able to implement a levy on your wages. If the IRS is not able to follow this process to the letter, then through the use of a tax appeal, the levy will be released very easily. When the levy begins, your employer will have no choice but to listen to the commands made by the IRS. If they ignore the IRS’ demands, the company you work for will be held liable for the amount in taxes that the employer should have been collecting from your paycheck.
How to stop the IRS wage garnishment
Implementing a wage garnishment on anyone’s paycheck is not something the IRS likes to do. If possible, they would rather resolve any owed taxes in a different manner. There are numerous methods the IRS provides to taxpayers that can be utilized in resolving tax problems. A majority of these methods do not even require you to pay back taxes in one lump sum, and other methods will actually take a portion off of what you owe in back taxes. Everyone has a different financial situation, and despite how bad your current financial situation might be, there is always the ability to stop the IRS from garnishing your wages. Even if it takes time to resolve your current tax dilemma, there are ways to impede wage garnishments, so you can keep your full paycheck.
Help with IRS wage garnishment
A tax professional can be highly advantageous in situations where your wages are being garnished by the IRS. Wage levies are problematic situations that can be very difficult for you and other average taxpayers to efficiently resolve and stop the wage garnishment by themselves. You need to keep in mind that a wage levy occurs months and months into the IRS process of collection. If you are suffering from garnishment of wages, it means the IRS has already tried to contact you about other alternatives possible in collecting taxes and resolving all tax issues. A wage levy is instituted because the IRS in no longer in belief that you want to fix your current tax problem with them. If you want to provide the IRS with a positive signal that you are looking to start a process to resolve paying back taxes, hire a tax specialist. It demonstrates that you are making a commitment to paying off any owed money in taxes. Keep in mind that the IRS is more likely to provide you with a more favorable decision if they are informed that you have hired a professional tax specialist for help.