Each year, thousands of taxpayers face wage garnishment because of unpaid tax debt. If you owe taxes and receive a Notice of Intent to Levy, do not ignore it. Wage garnishment can make it difficult to maintain a standard of living or get approved for loans, such as a mortgage. If your employer receives a wage levy notice from the IRS, they must comply. This means your paychecks, including commissions and bonuses, are at risk.
What Is Wage Garnishment?
Wage garnishment is a collection method used by the IRS to satisfy an outstanding tax debt. Unlike other creditors, the IRS does not need a court order to garnish your paycheck and it is not subject to the limitations under the Consumer Credit Protection Act (CCPA) Title III. It is not uncommon for the IRS to take as much as 70% of your paycheck. The exact amount levied, however, is calculated based on your filing status and number of dependents.
How to Stop Wage Garnishment
Once the IRS initiates the wage garnishment process, you have very little time to prevent it from happening. The easiest way to stop a wage garnishment is to pay your tax balance in full. If this is not an option, you’ll need to take steps to address your back taxes ASAP.
Tax Assistance Group can help you keep your hard-earned money and find an affordable solution for your tax problems. We can help you protect your paycheck by setting up an installment agreement with the IRS. You may also be eligible for an Offer in Compromise or Currently Not Collectible status.