A wage garnishment is the most common type of tax levy. A tax levy is a last resort measure taken by the IRS when a taxpayer has failed to pay their back taxes. Under a levy, the IRS can seize a taxpayer’s assets, meaning anything they have of financial value. The most common thing the IRS will seize when they place a levy is a taxpayer’s wages. They will take a specific percentage of the taxpayer’s salary and put it toward paying off their tax debt.
If you are experiencing a wage garnishment, it’s important not to ignore it. This is one of the most stressful things a person can experience financially. If you have a wage garnishment in place, remember that you can stop it and find a tax solution. There are many different tax relief options available and a tax relief expert like those at Vanguard Tax Relief can help you find one for your circumstances. You will need to make a formal agreement with the IRS and a tax expert can help you find the one that will help you most.
How does wage garnishment work?
- The IRS will send you a Notice and Demand for Payment before putting any levy in place; including a wage garnishment
- You will have to have either ignored or refused to pay the tax debt in your Notice and Demand for Payment before any levy, including a wage garnishment, will be put in place
- The IRS will send a Final Notice Of Intent To Levy to your last known address
- If you have not correctly responded to your Final Notice of Intent To Levy within 30 days, the IRS can now legally levy your assets, including your wages
- If you are employed, the IRS will likely choose to seize a portion of your wages
- The IRS will contact your employer and have them send a portion of your wages directly to the IRS
If you have a wage garnishment in place, you will want to stop it immediately. If you are under this type of levy, you are also vulnerable to other types of levies that may be even more stressful. You do not want to have the IRS place you under a bank levy (where they directly take money out of your bank account) or levy your personal property (such as your home). Don’t let a wage garnishment continue. Consult a tax relief professional who can help you begin an installment agreement, reach an offer in compromise, apply for penalty relief, or find whatever other type of tax solution you qualify for. There are options for you to end a levy, no matter what your financial situation is. Vanguard Tax Relief is here to help you find a tax solution and start getting out of debt.