IRS Wage Garnishment

Nothing motivates a taxpayer to seek help quicker than an IRS Levy. An IRS levy permits the legal seizure of your property to satisfy a tax debt. It can garnish wages, take money in your bank or other financial account, seize and sell your vehicle(s), real estate and other personal property. An IRS Levy does not come without several warnings, the last one titled Final Notice of Intent to Levy and Notice of Your Right to A Hearing. If you fail to reply to the final notice, the IRS will serve a levy and seize your bank account and your rights to wages, salary, commissions, or similar payments until the debt is paid or the levy is released. It’s typical for the IRS to garnish 70% or more of an employee’s wages, largely in an effort to convince the employee to contact them to resolve the debt. Visit the Administrative Wage Garnishment (AWG) Garnishment Calculator  to calculate the Wage Garnishment Amount that can be deducted from your pay.

Resolving Wage Garnishment

Once the IRS initiates enforced collection action through Levy your employer will have to comply with the IRS wage garnishment. Presuming the levy process was followed and the levy was issued properly, you’ll need to obtain an IRS Wage Garnishment Release to stop the garnishment.

Obtaining a release can be time consuming and extremely frustrating. Once your employer is served with a Form 668-W, the Notice of Levy on Wages, Salary and other Income, the employer has one full pay period before it is required to withhold the employee’s wages. The employee taxpayer has three options at the IRS level. You must get back into good standing with the IRS, either by paying your balance in full or entering into a tax payment plan or some other type of resolution, you may request an IRS manager to review the case, or you may request a so-called “Collection Due Process Hearing with the Office of Appeals.”

Without a doubt, contacting an Enrolled Agent is the best advice for dealing with IRS Levies effectively, as he or she will know best how to navigate the minefield of the IRS collection process.