One of the more aggressive tax collection tactics the IRS employs is wage garnishment. This tactic is a continuous tax levy on wages, salaries, and other income from the accounts of delinquent taxpayers. While the IRS will not generally garnish all of your wages, levies can go anywhere up to 70 percent of wages and other income earned.
You will be informed if the IRS is planning to take this course of action. For wage garnishment, and use of any other legal means to enforce tax payments, the IRS will send you a notice that sets out the amount owed, including penalties and interest, as well as a due date by which you must pay the balance in full or enter into an official payment agreement with the government. If no action is taken, you will receive a “Final Notice of Intent to Levy.” You will then have 30 days from the final notice to remedy your tax debt. If no action is taken by that date, the IRS will proceed with garnishing your wages.
Wage garnishment can affect you even if you are unemployed. If you owe on your taxes and cannot pay due to lack of income, you are not exempt from wage garnishments. The IRS has the ability to levy your bank accounts either by freezing your accounts for periods of time or by removing funds from your account.
There are limitations to when the IRS can garnish wages. The IRS cannot levy if the your tax debt case is in Appeals, you have a pending Offer in Compromise or pending/active Installment Agreement status, your case has been placed into Currently Non-Collectible status, or the Collection Statute Expiration Date has passed. If you are at risk of or are already experiencing wage garnishments, do not wait to take action! With help, you can get the IRS to release your wage garnishments or tax levies through debt payment in-full, installed payments, or government tax relief programs. Let our experts at Tax Help Network determine the best course of action for you and your family.