| Wage Garnishment is a common way for the IRS to | | | | payer does not pay off the entire amount owed in |
| collect unpaid taxes. This forced recovery mechanism | | | | taxes. Under this method the tax payer goes under |
| imposed by the state or federal tax collectors can be | | | | financial review every two years and this could |
| be a major nuisance for individuals. Wage garnishment | | | | increase the payment owed by the tax payer or the |
| doesn't take into consideration that some months you | | | | agreement could be terminated if the tax payers |
| will need more money than others, it just takes what in | | | | condition improves. |
| can until all taxes are recovered. Understanding how | | | | 3. Submitting an Offer in Compromise (OIC) |
| this works and understanding other options available | | | | This method is available for tax payers who have |
| can help you prevent or get a wage garnishment lifted. | | | | exhausted the previous two options and are not able |
| There are also companies available that specialize in | | | | to make the payment in full or the payments in |
| this type of situation and can work with you to get a | | | | installments. An OIC allows tax payers to settle their |
| more manageable outcome. | | | | tax debts for less than the full amount. This option will |
| How IRS Wage Garnishment Works | | | | only work if it is in the best interest of both the |
| Wage Garnishment is one way in which the IRS | | | | taxpayer and the government and promotes voluntary |
| (Internal Revenue Service) or State Tax Collection | | | | compliance with all future payments and filings. Tax |
| Agency attempts to recover back taxes or taxes you | | | | debt on an individual can be compromised if doubt |
| owe by garnishing your salary or wages. The IRS can | | | | exists that the tax is correct, there is doubt as to |
| garnish a significant part of your paycheck. The IRS or | | | | collectibility or collection of the tax would create a |
| State Collection Agency can garnish your wages | | | | financial hardship or would be unfair and inequitable |
| without a court order. Federal law states that a | | | | 4. Bankruptcy |
| consumer can exempt up to 75% of disposable | | | | Bankruptcy can seriously hurt a person's credit making |
| weekly earnings or 30 times the minimum wage which | | | | it very difficult for an individual to obtain any kind of |
| is currently $5.85 (whichever is greater). In other words, | | | | financing in the future and should only be used if all |
| the government cannot take more than 25% of your | | | | other options are exhausted. When Bankruptcy is filed |
| weekly after-tax income or 30 times the minimum | | | | tax debts may be eligible for discharge under Chapter |
| wage. State tax collectors can also garnish your | | | | 7 or Chapter 13. |
| wages. Each state has different laws with wage | | | | 5. Currently not Collectible |
| garnishment but typically wage garnishment can result | | | | When analysis of the IRS indicates that the tax payer |
| in 25% of your net income being garnished. Normally | | | | is unable and has no ability to pay their tax payments |
| the individual will receive an notice and demand for | | | | the tax payments maybe waved. After this all |
| payment for taxes. | | | | subsequent refunds are withheld and subsequent |
| If this notice is ignored a final notice is normally sent 30 | | | | actions may cause recurring collectibility determinations |
| days before the garnishment begins. Sometimes this is | | | | at later dates. When that tax payer is determined to |
| not the case, they can still garnish your wages even if | | | | be Currently not Collectible the IRS will not currently |
| you do not physically receive a notice, especially if you | | | | pursue collection. |
| have moved and the IRS doesn't have the the most | | | | How To Get a Wage Garnishment Released |
| current address. This garnishment will continue until the | | | | If you believe that the amount you are left with is |
| entire amount that is owed is paid back or their is | | | | insufficient for basic necessities like food & shelter you |
| another agreement that is made to pay these | | | | are very likely to be able to get a wage garnishment |
| amounts back. | | | | lifted. The best place to start is to call the IRS and try |
| How to Prevent A Wage Garnishment | | | | to set up an appointment and try to work out a |
| Obviously, the best way to prevent a wage | | | | different agreement with them. It may be difficult |
| garnishment is to stay current on your taxes, however | | | | dealing with the IRS directly, they will always push for |
| this is not always the case. If you receive a notice of | | | | you to pay the total amount owed no matter what |
| levy from the IRS, contact the IRS as soon as | | | | your circumstances, but there are ways around this. |
| possible. The best thing to do is to set up an | | | | There are many companies out there that specialize in |
| appointment with them to discuss other options. Most | | | | these situations and know what is required to get one |
| of the time a wage garnishment or wage levy can be | | | | lifted. |
| a much harsher financial burden than the other options | | | | These companies will give you a free consultation with |
| that are available. There are many options options out | | | | no obligation to find out more about your situation and |
| there than wage garnishment. A few of the most | | | | will give you what your possible outcomes could be |
| common options are the following: | | | | based on your situation. Using one of these companies |
| | | | can give you the quickest results with the best |
| 1. Setting up an installment agreement with the IRS | | | | outcome with their experience. Normally you can find |
| The IRS understands that some individuals cannot pay | | | | these companies on any search engine. They will |
| the entire amount owed and they are willing to work | | | | either have a phone number to call or have a from to |
| with individuals to set up payment plans to ensure that | | | | fill out to get your general contact information and |
| they will collect the money owed by the tax payer. | | | | general information about your situation. After the |
| These installment agreements allow for the tax payer | | | | company receives this information they will have a tax |
| to pay the entire amount of tax in smaller, more | | | | specialist who specializes in yours situation contact |
| manageable payments over a period of time. | | | | you. To get the best results you can call or contact |
| 2. Partial payment Installment Option | | | | multiple companies and see who can give you the |
| This method is similar to the prior option, but the tax | | | | best solution. |