What To Do When The Irs Garnishes Your Wages

A wage levy is the most common form of forced collections (IRS Tax Levy) used by the IRS. Under this form of forced collection, the IRS will contact the taxpayer's current employer and demand that they withhold a percentage of the paycheck to satisfy the tax liability. Employers listen to the demands of the IRS because if they don't, the employer will be responsible for the tax amounts that they should have withheld from the paycheck. The IRS will continue to garnish wages until they have collected the tax amount owed plus interest in penalties, the statute of limitations has expired or the tax amount is paid or settled.

The IRS typically sticks to a set process in their collection and has to meet certain requirements prior to implementing a levy. If the IRS does not stick to this process then the levy can be easily released through a tax levy appeal. Once the levy has begun you can be sure that your employer will listen to the demands of the IRS because if they don't, the IRS will hold your company liable for the tax amounts that they should have collected.

It is important to know that the IRS would actually resolve taxes owed in another manner other than wage garnishment. There are many different methods that the IRS offers to taxpayers to resolve their tax problems. Most methods don't even involve paying back the taxes in full or all at once. Every persons financial and tax situation is different and no matter how bad your situation is there is a way for you to stop wage garnishment. Even if you can't get your tax problem resolved right away there are many other ways to negate the effects of the garnishment and keep the money that you actually need.

When you are dealing with IRS wage garnishment it is highly suggested that you use a tax professional to help. A wage levy is a serious situation and it may be difficult for the average taxpayer to successfully resolve their tax problem and stop the garnishment on their own. One thing to realize about a wage levy is that it occurs very late in the IRS collection process and the IRS has already tried all other alternatives to collect taxes owed from you with no luck. At this point the IRS has little faith that you will actually want to resolve your tax problem and work with them. However, when you hire a tax professional it gives a positive signal to the IRS that you do indeed want to resolve your tax problem and you have made the commitment to hire a tax professional to help you do so. With that being said, the IRS is much more likely to give a favorable decision to an individual using a tax relief professional to help with their wage levy.

By: Douglas Hanson

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