IRS Tax Question: How Can I Avoid an IRS Wage Garnishment?

IRS Wage Garnishment: Wage Garnishment is a tool the IRS uses to collect when you won't pay. The IRS uses Wage Garnishment to take funds owed directly from your paycheck. The IRS can garnish your salary, bonus, commissions, and even retirement earnings.

Don't Pay: When you refuse to pay the IRS, the have official authority to move on to your wages to collect on your back taxes. The Wage Garnishment can continue until the Tax Debt is satisfied in full, or another agreement has been made to pay the IRS. Either way, it's difficult to handle.

When Wage Garnishment Strikes: The following has to take place before the IRS will Garnish your wages.

1. The IRS has assessed the taxes owed and sends a notice and "demand for payment."
2. The taxpayer ignored the notice or refused to accept liability for the tax debt.
3. the IRS informs the taxpayer with "Final Notice of intent to Garnish" at least 30 days before the Wage Garnishment takes place.

How much? The IRS doesn't have a set amount or percentage it takes out. It has a certain amount it leaves you with, which is rarely enough to survive on. What you are left with depends on your filing status and number of allowable exemptions.

Employer Can't Save You: The IRS sends a notice to your employer's payroll department. They will be instructed to withhold a specific amount of your wages and send it directly to the IRS. The employer has no choice in the matter, if they refuse they will be personally liable for money the IRS does not receive.

How to avoid Wage Garnishment:

1. Contact the IRS immediately after receiving a notice of levy letter. Do not put this off, you only have 21 days to speak with the IRS before a Wage Garnishment could strike!

2. Contact the IRS directly or contact a tax professional. A Tax Professional can negotiate with the IRS to set up the best payment arrangement for you and supply supporting documentation, or you can call the IRS directly and request a payment arrangement.

3. You're at the IRS's mercy at this point. Try to avoid making dumb movies. For example, don't continue to contribute to retirement accounts while telling the IRS agents that you can't afford to pay. That won't fly, they will garnish those funds to satisfy the debt.

Avoid Wage Garnishments: If you recently recieved the IRS "Intent to Levy" notice, act fast! Avoid a Wage Garnishment before it starts, because the IRS won't want to let go of those funds. The IRS Wage Garnishments leaves you with so little on payday that it'll be hard to pay your monthly bills. Face the garnishment and resolve the situation quickly.