How to Stop an IRS Garnishment
Each year, thousands of people face an IRS Garnishment (levy). As the old saying goes, in life, only two things are certain: death and taxes. Unfortunately, it seems that Benjamin Franklin was really on to something. As a citizen, legal resident, or non-immigrant tax resident of the United States, you have to pay your taxes.
If you owe the IRS money, there is no easy way out of it. You can’t just avoid filing your taxes and hope that the IRS won’t notice. While that may work for awhile, the IRS will discover the debt. Once they discover the debt, they will take action to retrieve what they are owed.
How to Stop Garnishment Before It Begins
When a person hasn’t paid their taxes, the IRS will send them a ‘Notice and Demand for Payment.” If this notice doesn’t get the taxpayer moving, the IRS will send a “Notice of Levy.” After the final notice has been sent, the taxpayer has 30 days to pay their debt or have their wages garnished. Taxpayers also have the right to ask for a hearing during this period.
Most states allow the IRS to garnish 25% of a person’s disposable income. This amount may be less if the individual makes under a certain amount or lives in a state with a lower garnishment allowance.
To stop garnishment of your wages, you will want to act as soon as you receive the first notice from the IRS. This is the best time to seek the help of a professional. An experienced professional will be able to intervene on your behalf and negotiate with the IRS. A tax lawyer, attorney or specialist (Registered Tax Agent) may be able to negotiate a more preferable payment plan or convince the IRS to drop the garnishment altogether.
Will the IRS Be Willing to Negotiate with Me?
After being contacted by the IRS, it’s important to remember that the government does not necessarily want to garnish your wages. Garnishing a person’s wages is a hassle. They do, however, want the money they are owed. If a debtor just ignores the IRS, the government will be forced to recover their money through the wage garnishment process.
Fortunately, if you make an effort to contact the IRS about your tax levy, or better yet, have a professional contact the organization on your behalf, they will normally be willing to negotiate. Tax specialists know how to communicate and work with the IRS. They understand the ins and outs of the laws concerning IRS levy procedure.
Can a Wage Garnishment Be Stopped Once It Starts?
A tax specialist may also be able to stop a garnishment after it has began. To do this, tax specialists will negotiate a different payment plan or settle the debt for less than what was owed. Once an agreement has been made, the IRS will send your employer a formal notification asking them to discontinue the levy.
If you are facing a garnishment, it’s important to contact a professional that can help. When dealing with a wage levy, ignoring the situation will not make it better. The only way to improve your situation is to face an IRS garnishment with an experienced professional at your side.
About Henry Byers
Henry Byers, ex-IRS Manager and CPA with a primary focus on the areas of IRS Tax Debt, IRS Levy & Wage Garnishment Release.
Specializing in resolving your IRS tax debt problems for individuals and small to medium sized businesses.
Whether its an IRS garnishment, Wage garnishment, IRS Lien, IRS Levy, IRS audit, IRS penalties or unfiled or delinquent tax returns that have you worried, we can help!
