Can the IRS Garnish Your Wages? How to Stop an IRS Wage Levy
Many taxpayers worry about the possibility of wage garnishment when they owe the IRS money. Wage garnishment can significantly impact your ability to pay bills and support your family.
Understanding when and how the IRS can garnish wages may help you take action before the situation becomes more serious.
If you are facing IRS collection actions, schedule a consultation here:
TAX CONSULTATION BOOKING CALENDAR
Or call (212) 644-8231.
What Is an IRS Wage Garnishment?
An IRS wage garnishment, also called a wage levy, allows the IRS to legally take a portion of your paycheck to satisfy unpaid taxes.
Unlike many private creditors, the IRS does not need a court judgment to garnish wages.
Once the levy is in place, your employer must send a portion of your paycheck directly to the IRS.
When Can the IRS Garnish Wages?
Before garnishing wages, the IRS generally follows a collection process.
This usually includes:
Sending multiple tax balance notices
Issuing a Final Notice of Intent to Levy
Giving taxpayers time to respond or appeal
If the taxpayer does not respond, the IRS may begin wage garnishment.
How Much of Your Wages Can the IRS Take?
The IRS leaves taxpayers with a small exempt amount based on filing status and number of dependents.
The remaining wages may be sent directly to the IRS until the tax debt is paid or another resolution is reached.
How to Stop an IRS Wage Garnishment
There are several ways to stop or prevent wage garnishment.
Possible options include:
Setting Up a Payment Plan
An installment agreement can often stop wage levies and allow you to make manageable monthly payments.
Offer in Compromise
If you qualify, you may settle your tax debt for less than the full amount owed.
Currently Not Collectible Status
Taxpayers experiencing financial hardship may qualify for temporary relief from collection efforts.
Speak With a Tax Professional
If the IRS is threatening or actively garnishing your wages, getting professional help quickly may help protect your income.
A licensed Enrolled Agent can represent you before the IRS and help negotiate the best resolution for your situation.
Schedule a Consultation
If you owe taxes and are concerned about wage garnishment, it may be time to explore your options.
Schedule a free consultation here:
TAX CONSULTATION BOOKING CALENDAR
Or call (212) 644-8231.
