I have decided to take a break the next two weeks from the tax plan blogs, because of an email I recently received. Unfortunately, I get many emails similar to this. In the email, the fellow stated that he felt all hope was lost. His tax professional had told him there was nothing that could be done about his situation. He felt that the only option left open to him was to take his own life. The IRS really can ruin your life, but only if you let it! Do not give up! Do not let the IRS win!If you owe more than $10,000 to the IRS and you haven’t made an agreement with them to pay it off, you are vulnerable to a wage garnishment. If you have been fortunate enough to avoid it so far, take heed now before it’s too late! The most efficient collection method and pressure tactic the IRS pulls out of its bag of tricks is the wage garnishment. It is incredibly easy for them to figure out where a taxpayer works, since your employer is reporting money paid to you on a quarterly basis. It's not as easy for the IRS to levy contractors, but a 1099 wage garnishment is much harsher.
Here is what you can expect if a wage garnishment hits you!
• Your employer or the people you contract for will be notified before you.
• What you are left with is based on an IRS table of what you will need for basic survival.
• You could be left with as little as $791 a month.
• If you work on a 1099 basis, your entire check will be taken.
• If you have more than one job, all of your jobs can be levied simultaneously.
• Working overtime will give you absolutely no extra income.
• Many employers choose to fire an employee with a wage garnishment.
• Your spouse may go through a wage garnishment at the same time.
There are many ways to temporarily end a wage garnishment. You can prove extreme hardship and have it lowered. You can file for an Offer in Compromise or appeal your tax debt. However, these are temporary solutions at best. At worst, they could potentially cause even more tax problems.
Your best bet to stop a wage garnishment is to enter into an Installment Agreement. This will show the IRS that you are willing to work with them to pay your tax debt, and will fully protect you from aggressive action as long as you abide by the terms of your Installment Agreement.
Not all Installment Agreements are created equal.
There are different kinds of Installment Agreements for different situations. You need to make sure that you are in the one that benefits you the most! If you cannot pay the amount you agreed to in full and on time every month, you could be looking at another wage garnishment. It is really best for anyone who owes more than $10,000 to talk to a tax debt professional before agreeing to anything with the IRS.
The holiday season is beginning. Will you have the money for a turkey dinner and holiday presents? My team is here to make sure that you can live a happy life, free from the worries of a possible wage garnishment or bank levy. Don’t give up! Don’t let the IRS win! Let us help you!