How Does the Federal Wage Garnishment Process Work?

Through wage garnishment the IRS is able to indirectlyscares employers into doing what the IRS tells them.
collect the money that is owed to them. This is aAfter all, they do not want to be liable for taxes that
process that only takes place after you have ayou owe.
chance to pay in a more traditional manner. The IRSThe IRS has the ability to garnish salaries, wages,
will not begin to garnish your wages until you have hadcommission, and bonuses. Once a garnishment is
the chance to comply.implemented, the IRS usually takes up to 25 percent of
Before the actual process begins, the IRS will follow ayour pay. The amount that is garnished depends on
few steps. First, the IRS will assess a tax liability forhow much you owe, and of course, the amount of
you and send you a notice demanding payment to theyour paycheck.
last address they had on file for you. Second, if youThe IRS does not care if wage garnishment will put
neglect to respond to these letter the IRS will typicallyyou in a bad financial position as far as paying your
send you another notice. If you fail to respond afterother bills. They gave you enough time to find another
the 2nd notice, they will send you a final notice ofpayment option, and by now they are fed up and
"Intent to Levy" and give you 30 days to respond ordoing whatever it takes to get the money that is owed
comply before issuing a wage levy (wageto them.
garnishment).The levy will remain until the IRS has garnished enough
If you fail to respond after 30 days, your employer willmoney to satisfy your total debt or you obtain a
be contacted. The IRS tells them how much money torelease by setting up a payment plan or some other
take from each paycheck and send to them. They dosettlement mechanism. Without any action, the duration
not even include you in the process. This is somethingof the wage levy depends on your debt, as well as
that the IRS agrees to with your employer - there ishow much is being taken from each paycheck. Of
no way you can stop this from happening without firstcourse, you have the ability to pay the IRS during the
working some sort of agreement with the IRS. Somewage levy process as to pay off your liability faster.
people believe that they can have their employer turnThe IRS wage garnishment process is quite simple.
down the IRS; this is not the truth. If your employerThey decide how much money to take, and continue
neglects to comply, they will be responsible for theto do so out of each paycheck until your debt is
money that is to be collected. As you can imagine, thissatisfied.