| Have you recently received information to the effect | | | | investments, etc. This is an honest attempt to show |
| that you could be subject to an IRS wage garnishment | | | | that you do not possess enough cash available to pay |
| or a court order to withhold your pay? Here is some | | | | the IRS. Details of all checking accounts, savings |
| information | | | | accounts, money market accounts or brokerage |
| This usually comes in the form of a court order after | | | | accounts should be clearly disclosed. The IRS also |
| either the IRS or another person has sued you for | | | | checks to see whether the person is in a position to |
| money owed and won. When it comes to the IRS, | | | | borrow the amount owed to the IRS. Another area |
| their power to garnish your wages is limited up to 25% | | | | they check is the retirement accounts to see whether |
| of your disposable earning of a particular period. | | | | these can satisfy the amount owed. |
| From time to time, certain individuals find out that they | | | | Let us talk about the actual garnishment. In an actual |
| owe the IRS and due to one reason or another, may | | | | IRS garnishment, if the amount owed is less than |
| be unable to pay in a timely fashion. This forces the | | | | 25,000 the IRS officers do not handle the case. The |
| IRS to seek a court order to "force" the person to pay | | | | way the IRS computes the amount to be garnished is |
| up. | | | | by calculating the difference between the income and |
| One of the points we strongly recommend is that if | | | | the expenses. This is the amount that the IRS |
| someone owes the IRS, to try and initiate contact and | | | | department needs for the clearance of the tax dues. |
| work some sort of arrangement. The IRS has a lot of | | | | The IRS has already pre-determined how much the |
| tools and resources at its disposal to assist people | | | | monthly expenses are for most people given a |
| who owe back-taxes. They can either reschedule the | | | | hypothetical situation. This way, they know how much |
| payments or work out a payment plan to get you | | | | to deduct without necessarily causing a financial |
| caught up. | | | | hardship. |
| The IRS does wage garnishments as a last resort. | | | | The IRS makes use of a form that the individual signs. |
| Before they use this most feared tool, they will make | | | | This is a financial assessment form that tells them |
| several attempts to contact you mostly by mail. As | | | | what your overall monthly expenses are. If the person |
| we mentioned, the IRS does accept payment plans if | | | | runs a business, then a financial assessment for the |
| some basic information is provided. This information | | | | business needs to be completed as well. |
| includes the returns filed till date. This is filing that states | | | | After filling out this assessment form, the IRS then |
| that although you do owe back taxes, your exact | | | | begins the garnishment process and this may also |
| financial status has been stated to the government. | | | | include penalties and interest on the amount |
| While dealing with the IRS, you have to disclose all | | | | outstanding. This may eventually lead to a larger |
| your assets which include all cash, bank accounts, | | | | payout amount than previous anticipated. |