IRS Wage Garnishment
A wage garnishment is an order from a court or government agency that is sent to your employer requiring them to withhold a certain amount of money from your paycheck. In an attempt to collect back taxes, the federal or state government can take part or even all of your paycheck. This typically happens as a final attempt to collect a debt and once your employer is ordered to garnish your wages, they must do so or be held liable for payment. In this scenario, you need an experienced tax specialist on your side to help protect your paycheck and assets. At Allied Tax Advisory Group we have the knowledge necessary to settle your wage garnishment issue.
The IRS’s First Steps
Once your taxes are assessed, you will receive a notice and a Demand for Payment of the amount owed. This notice should also provide you with a due date by which you must pay the balances in full. If this invoice is not paid, you will receive a Final Notice of Intent to Levy and a Notice of Your Right to a Hearing. Before this point is reached, you should attempt to resolve the issue with the IRS and submit a request to get on a payment plan. If you have received this letter within the last 30 days this is your window to act, Allied Tax Advisory can assist on the right procedures before Garnishment of Wages begins.
The Amount that the IRS Can Garnish From Your Wages
Typically, the IRS will take 25% or more of your income, and your employer will have to comply with the IRS before they will be responsible for your debt. The IRS uses a tax code table that corresponds with the number of exceptions that you claim for tax purposes. This sets forth the amount that is necessary for basic living necessities. Unfortunately, a garnishment of wages can amount to nearly 70% of your income.
Stopping IRS Wage Garnishment
Fortunately, the professionals at Allied Tax Advisory can seek out the number of different ways you can stop wage garnishment and resolve your problems with the IRS. In order to get back in good standing, you can either pay your balance in full or enter into a payment plan for resolution.
- Enter Into an Installment Agreement- Wage Garnishment will stop if you enter into an approved Installment Agreement to pay the tax debt in full as long as monthly payments are made before the debt becomes not collectible by the IRS.
- Make an Offer in Compromise– An Offer in Compromise allows you to pay your debt with the IRS for less than the total amount due specifically based on your financial situation.
- Currently Not Collectible Status– If wage garnishment or another collection status would prevent you from meeting your basic needs for you and your family, you can petition Currently Not Collectible Status. The IRS can temporarily stop collections for up to years until you are able to make the payments.
- File a Tax Levy Appeal– If you disagree with the tax levy, you can file an appeal even for cases that are ongoing for more than 30 days.
Call Allied Tax Advisory Group to find out what your next move is to prevent the effects of wage garnishment on your income.