The Internal Revenue Service (IRS) has a number of tools for collecting outstanding debts. One of the most effective is the recurring wage garnishment. The IRS can notify your employer that you have back tax debt, and your employer will be required by law to send a significant portion of each of your paychecks directly to the IRS to pay down that debt. If you are facing a wage garnishment, turn to Regal Tax & Law Group, PC.
Our esteemed tax attorneys have the skills and experience to stop your IRS wage garnishment. For over 10 years, we have helped individuals in San Francisco and throughout California resolve tax controversies with the IRS. We are keenly aware that a wage garnishment can have serious repercussions. Not only will the forfeited income make it even more difficult to manage your finances, but your privacy will also be lost as your employer learns about your tax and financial problems.
When you become our client, we will take the time to understand your circumstances and explore all your tax debt relief options. If the IRS is threatening to seize your wages, don’t delay. Please contact Regal Tax and Law Group, PC today.
What is an IRS wage garnishment?
The IRS has the power to seize your income, including wages, salary, commission and bonuses, to recover federal tax debt that you owe. In fact, the IRS — unlike other creditors — can garnish your wages without obtaining a court judgment; the IRS can also seize far more of your income than most other creditors.
When the IRS garnishes your wages, your employers will withhold part of your wages each pay period to send to the IRS until:
- The back taxes are paid
- You make other arrangements with the IRS to pay the tax debt
- The levy is released
Although the IRS does not need to go to court to get a judgment to garnish your wages, the agency must first send you a written notice indicating the amount you owe and the date by which the tax debt, plus interest and penalties, must be paid. If you fail to comply within the demand for payment after the agency sends a final notice, the IRS may begin garnishing your wages.
How Much Will the IRS Garnish from My Wages?
While state and federal law limit the amount that most creditors can seize from your wages (typically up to 25 percent), the IRS can seize as much as it needs to collect the debt. The tax code only requires the agency to leave you with a minimal amount to pay for basic living necessities, perhaps as low as 30 percent of your income. The actual amount sent to the IRS for your wage garnishment depends on your filing status, the number of exemptions you claim, and how often you get paid.
As an example, if you are single, get paid weekly, and claim 5 exemptions, the IRS can force your employer to send all but about $480 out of each paycheck, and this type of garnishment can drastically impact your finances. Even worse, if you are self-employed, the IRS may leave you with nothing.
The specific formula for deciding the amount to send the IRS is explained on levy Form 668-W. If you do not make arrangements with the IRS to pay the back taxes, the agency will continue to require your employer to send money out of your paycheck until the debt is satisfied in full.
How Regal Tax & Law Group, PC Can Stop Your IRS Wage Garnishment
Knowing that an IRS wage garnishment can lead to the financial collapse of your household, our experienced tax lawyers will explore your options for stopping the IRS from garnishing your wages, such as:
- Appeal — You have the right to appeal an IRS wage garnishment within 30 days of receiving the IRS “Final Notice of Intent to Levy.”
- IRS installment plan — We can help to negotiate a payment plan with the IRS that allows you to make monthly payments until the tax debt is paid in full, but you must be able to demonstrate that you are incapable of repaying the entire debt at once.
- Offer in Compromise — The IRS may accept an Offer in Compromise to settle the tax debt for less than you owe as long as you can demonstrate that paying the full amount would cause you extreme financial hardship.
- Bankruptcy — One last resort is to file for bankruptcy which will stop the wage garnishment. However, much of your tax debt will need to be repaid once the bankruptcy is discharged.
When your income and your financial future are in jeopardy, our experienced tax attorneys know how to stop your IRS wage garnishment.
Contact Our Experienced IRS Wage Garnishment Attorneys
An IRS wage garnishment is a serious matter. The best way to protect your interests is to work with an experienced tax lawyer. At Regal Tax & Law Group, PC, we have a well-earned reputation as dedicated advocates who design innovative solutions to tax controversies. The sooner you contact our office for a complimentary consultation, the sooner we can get started on stopping your IRS wage garnishment.