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IRS Garnishment – IRS Tax Relief

The IRS has the power to garnish, levy or legally seize any income you make to satisfy federal tax debt or taxes owed. IRS Garnishments can apply to your hourly wages, salary, commissions, and bonuses. The IRS will contact your employer directly, serve the IRS garnishment and require your employer to directly send the IRS a portion of your income. Your employer is required by law to comply with the IRS garnishment, typically within one full pay period of receiving the notice from the IRS. The difference between the IRS and most creditors, however, is that the IRS does not need to take you to court to get a judgment in order to garnish your wages, and the IRS can garnish more of your wages than a regular creditor can garnish.

The IRS Garnishment Process

When the IRS seeks an IRS garnishment on your wages for a tax debt that you owe, or use any other legal means to enforce payment of the tax debt that you owe, it will first send you a written notice that sets out the amounts that you owe, including the tax, penalties, and interest. This IRS garnishment notice should also provide you with a due date by which you must pay the balances in full. Assuming that you do not pay the balance in full, you later will receive another notice, entitled “Final Notice of Intent to Levy,” Once thirty days have passed from the time you have received the final notice, and you still have failed to pay the balance due, the IRS can proceed with the IRS garnishment of your income.

The Amount that an IRS Garnishment Can Garnish From Your Wages

The law places limits on the amount that a regular creditor can garnish from your wages. However, these normal limits do not apply to the IRS. Rather, the tax code requires the IRS to leave you with a certain amount of income after the IRS garnishment is enforced on your wages to pay your tax debt. The tax code contains a table that corresponds to the number of exemptions that you claim for tax purposes and sets forth the amount that is necessary for you and your family to pay for basic living necessities. Unfortunately, a garnishment by the IRS can amount to 70% or more of your income.

Stopping an IRS Garnishment

There are a number of different ways in which you can resolve your problem with the IRS. In order to avoid or stop a wage garnishment, 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 Could Enter Into an IRS Installment Agreement

The IRS will stop an IRS garnishment if you enter into an approved installment agreement to pay your tax debt in full over a series of monthly payment installments. As long as you can make the monthly payments and pay off the debt before the debt becomes uncollectible by the IRS, your installment agreement is likely to be accepted by the IRS.

Do An Offer in Compromise

If you qualify and are eligible for an Offer in Compromise, you can settle your debt with the IRS for less than the total amount that you actually owe, based on your financial situation. However, if you are facing an IRS garnishment, you may qualify for this type of IRS tax relief, and your IRS garnishment will stop while your case is being reviewed.

Stop an IRS Garnishment

Stop an IRS Garnishment and Get Happy.

The IRS has the power to enforce an IRS garnishment, levy or legally seize any income you make to satisfy federal tax debt or taxes owed. IRS Garnishments can apply to your hourly wages, salary, commissions, and bonuses. The IRS will contact your employer directly, serve the IRS garnishment and require your employer to directly send the IRS a portion of your income. Your employer is required by law to comply with the IRS garnishment, typically within one full pay period of receiving the notice from the IRS. The difference between the IRS and most creditors, however, is that the IRS does not need to take you to court to get a judgment in order to garnish your wages, and the IRS can garnish more of your wages than a regular creditor can garnish.

The IRS Garnishment Process

When the IRS seeks an IRS garnishment on your wages for a tax debt that you owe, or use any other legal means to enforce payment of the tax debt that you owe, it will first send you a written notice that sets out the amounts that you owe, including the tax, penalties, and interest. This IRS garnishment notice should also provide you with a due date by which you must pay the balances in full. Assuming that you do not pay the balance in full, you later will receive another notice, entitled “Final Notice of Intent to Levy,” Once thirty days have passed from the time you have received the final notice, and you still have failed to pay the balance due, the IRS can proceed with the IRS garnishment of your income.

Be Placed Into Currently not Collectible Status Due to Financial Hardship

If you can prove to the IRS that the IRS garnishment or other collection action would prevent you from meeting the basic needs of you and your family, then the IRS may temporarily cease its collections efforts for months and even years. In this case, you must show that collection of the debt would be unfair because your financial circumstances are so bad. The IRS will require financials.

You Could Change Employers

If you change employers, your IRS garnishment will not proceed, and it will only be a matter of time before the IRS once again tracks your new employer down and reissue a new wage garnishment. This is only a temporary solution, but it can give you a few months of relief. THIS IS REALLY NO SOLUTION.

Temporarily Quit Your Job

Once again this is not a real solution to an IRS garnishment. If your employer will allow you to temporarily quit your job for a period of time, and later return to work, then this tactic will slow down the IRS as well. It will take some time for the IRS  to discover that you have returned to work at the same employer and reissue a new IRS garnishment to that employer.

File a Tax Levy (IRS Garnishment) Appeal

If you disagree with the tax levy in any way, you can file an appeal, even if it has been more than 30 days since you received the notice of intent to levy.

If you can prove to the IRS that the IRS garnishment or other collection action would prevent you from meeting the basic needs of you and your family, then the IRS may temporarily cease its collections efforts for months and even years. In this case, you must show that collection of the debt would be unfair because your financial circumstances are so bad. The IRS will require financials.

 

 

IRS Wage Levy – IRS Bank levy – IRS Seizure – IRS Tax Attorney

An IRS Levy is among the most destructive tools the Internal Revenue Service (IRS) uses to collect what you owe them. An IRS bank levy effectively freezes your available funds in your bank account. The IRS freezes the funds in your bank account often leaving you with no money. Your seized assets are then applied by the IRS to your income tax debt. Any resulting unpaid checks or bank fees only add to your financial problems. Any account with your name on it may be at risk of a bank levy – even if the money isn’t yours. Financial institutions must comply with IRS requests or they will be subject to severe IRS penalties. Even if your paycheck is directly deposited into your account(s), you may not be able to access the funds.

You have 21 days (includes weekends and holidays) to get your money back.

FLAT FEE TAX SERVICE, INC. CAN STOP AN IRS LEVY

IN ONE (1) DAY

An IRS wage levy also known as a wage garnishment presents similar challenges. In these situations, the Internal Revenue Service (IRS) sends your employer a written notice requesting a major portion of your pay as payment for your outstanding income tax bill. Just like banks, your employer must obey the IRS’s request or face severe legal punishment.

The IRS can exercise complete control of your existing and future assets. You need to know that if you are self-employed, your clients or customers will receive a demand for collection in what’s known as a “payor” levy. The payments they owe you are then sent to Internal Revenue Service (IRS). Bank and wage levies may allow the IRS to control every decision and financial move you make.

The IRS may also seize your Social Security, your Social Security Disability (SSDI) or your Veteran’s Pension. The IRS may seize a minimum of 15% (or more) under the Federal Payment Levy Program (FPLP).

An IRS wage levy (wage garnishment remains in place until you pay your tax liability or until a levy release is negotiated.

Receiving a notice from the IRS of Intent to levy requires immediate attention. Don’t lose your paycheck, your bank account or your Social Security.

Call us for your FREE and confidential consultation. 

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