IRS Wage Garnishment

What is a wage garnishment?
An IRS wage garnishment is a type of levy or “seizure” of assets. In this case it is a levy of wages earned. The wage garnishment is different from other types of levies in that, it will continue until the debt is paid off, or until it is released.

As you can imagine, a wage garnishment would have a seriously damaging effect on your financial ability to pay for everyday necessities like your house payment, car payment, food, etc.

Why is the IRS garnishing my wages?
The IRS usually only resorts to a wage garnishment once they have tried to collect unpaid or back taxes by other means and were unsuccessful. In most cases, it is a final effort by the IRS to get your attention and your cooperation in paying off your tax debt.

How does a wage garnishment work?
An IRS wage garnishment is actually a form of an administrative levy. Because of this fact, the IRS not legally required to obtain a court order before processing. However there are still a few requirements that they must meet before they can.

Requirements for the IRS to file a wage garnishment

You must owe a tax debt (tax assessment)

The IRS has tried to contact you at the last known address on file

They have mailed you written notice that you owe a tax debt (demand for payment)

You have either 1) neglected to pay, or 2) refused to pay the tax debt in question within the allotted time period (notated on the demand for payment)

The IRS has sent you a final notice of intent to levy, and a notice of your right to a hearing at least 30 days prior to the levy being imposed.

Also, just a quick note about the Statute of Limitations as it applies to IRS audits. Unless the IRS suspects tax fraud, they can only go back 3 years to audit any return you file (from the date you file). However, if the IRS does suspect tax fraud, or a gross understatement of your income, then they can go back up to 6 years.

My wages are being garnished by the IRS, what do I do?
If your wages are being garnished by the IRS, you already know first hand how devastating this can be. But don’t give up – there is hope, and we can help!

Getting an IRS wage garnishment released is difficult, but not impossible. Remember, the IRS does not want to ruin your life, just get paid what they are owed. This is where a tax resolution specialist can help you. A qualified tax professional can speak to the IRS on your behalf, get to the root cause of the problem, and begin to get the matter resolved

If you have recently received a Demand for Payment, or an Intent to Levy, you need to act quickly. Please consider speaking with a tax professional to at least discuss your options. To speak directly with a tax advisor at our firm, call us at (888) 918-8121. The call is free, the consultation is free, and you are under no obligation to hire us.