One question I get a lot is... How do I Stop the IRS from Garnishing my Wages?
There's more than one answer to that question, and the solution is never simple. Most taxpayers foolishly ignore the initial Notices of Intent to Levy that the IRS is required to send out.
Usually, a Wage Levy will only end when:
• You pay your Tax Debt, or
• The time expires for legally collecting the tax.
This means you must find a solution for paying on your Tax Debt in order to stop the Wage levy.
But, there is another option that is rarely discussed.
Three Strikes, You're Out: The IRS actually gives you a couple of warnings before they swoop in and seize your pay.
1. First, you receive "Notice and Demand for Payment" Remember that one? I'd say it's pretty cut and dry.
2. If you ignore the first notice, Next you receive "Final Notice of Intent to Levy and Notice of Your Right to A Hearing" at least 30 days before the Wage Garnishment.
If you read carefully, the second notice states "Notice of Your right to a Hearing." That's right, you can actually try a Collection Due Process Hearing to resolve your Tax Debt!
What is a Collection Due Process Hearing?
You have the right to a Collection Due Process hearing with the Office of Appeals. This means you must file your request within 30 days of the date listed on your IRS Notice (Final Notice of Intent to Levy and Notice of Your Right to A Hearing). You should consider a Collection Due Process Hearing or ask the IRS manager to review your case for any of the following reasons:
• You paid all taxes owed before the Wage Levy notice was sent
• You want to discuss options for paying your Tax Debt
• You want to dispute the amount owed
• The IRS made an error when assessing the amount owed
• The Statute of Limitations expired before the Wage Levy notice was sent
• You want to make a spousal defense
Remember, you must file your request within 30 days of the date on your notice. Fail to do so, and you've lost your golden ticket!