Wage garnishment by the IRS: 3 things to know
If the IRS is going after your wages, it’s obviously a serious situation. If you’re like most people, you need your paycheck to live on.
In this post, we will discuss three useful things to know in helping you respond to an IRS wage levy.
The terms “levy” and “garnishment” essentially mean the same thing.
Garnishment is a process by which property in the possession of a third person is taken by a creditor to pay a debt. It includes such debts as unpaid child or spousal support, student loans and taxes.
Generally this requires a court order. In the case of tax debt, however, the IRS doesn’t have to get a court order.
It is possible to seek relief from a wage levy if it is causing undue hardship.
Federal tax law allows for the possibility that the IRS will release the garnishment on your wages if it is causing too much immediate financial difficulty for you.
To be sure, this doesn’t mean you get a free pass on the tax debt you owe. But the IRS should be willing to work with you to get a payment plan set up or take other action to resolve the remaining balance.
A tax attorney can help you take action to get the levy on your wages released.
The action to be taken depends of course on your personal situation. You may, for example, be eligible for an offer in compromise (OIC). Or your circumstances may point toward an installment agreement or some other solution.
In short, you don’t need to stand passively by while the IRS grabs a big chunk of your paycheck. A knowledgeable attorney can help you address your particular situation.