IRS Wage Garnishment – What You Need to Know
When the IRS collects your tax liabilities without you having to directly pay them, in an officially authorized way, it is referred to as IRS wage garnishment. The IRS wage garnishment procedure is simple- what the IRS does, is that it gets in contact with your existing employer and simply lets them know that your income is to be garnished.
There might arise a possibility that your employer does not acquire a certain fraction of your wage to transfer to the IRS on your behalf. In this case the employer shall be held legally responsible for the sum that wasn’t garnished. The IRS are capable of garnishing wages, commissions, salaries, bonuses and perhaps even pension earnings and retirement money.
To start with if the IRS wage garnishment is realized, the IRS classically garnishes equal to 25%+ a taxpayer’s income. So if you currently earn $1,000, then it will become $750. The IRS characteristically takes hold of as much money as they possibly can and leave you with a lot lesser than you usually spend. This charge shall stay put till the time the IRS has detained sufficient income from you to gratify your tax liabilities plus the interest and penalty or perhaps till the time you come to some sort of a settlement with them.
If you are a taxpayer holding a salaried job, the most common and applicable IRS levy for you shall be the wage levy. Do not take this lightly as the wage levy is among the harshest collection mechanism that is used by IRS. If you decide to cooperate and settle an arrangement of some sort with IRS, it is bound to cost you less than if they garnish your wages with an IRS wage garnishment. If you receive a wage levy, it is recommended that you immediately talk to and consult a tax professional who will be capable of giving you all the options and perhaps recommend you the most appropriate tax settlement.
You must be speculating that when the IRS inflicts the IRS wage garnishment. Well, a tax duty is the subsequent collection step after a tax lien. There are times when the IRS skip tax liens and straight away jump to some other method of collection, depending on how they have evaluated your situation. The apt form of levy will be decided by the IRS depending upon your financial situation and the work situation. Personal property, be that in any form whatsoever, can be seized by the IRS as and when they fancy. This includes your bank accounts, your wage, your commissions, travel advances, SSA benefits, right to property and property itself.
The IRS must meet basic three requirements before it begins to levy tax:
- The IRS must assess tax accountability and send you a note demanding the payment.
- You, instead of paying the tax, neglect or refuse to pay.
- The IRS then sends you the final note of intent to charge and also a note of your rights to an investigation no less than 30 days previous to the levy.
These notices will be sent by the IRS to your last identified address or be delivered in person or by mail to your office or your house. The IRS will wait 30 days and hope that you’ll come up with a settlement for your outstanding tax responsibility before applying the IRS wage garnishment.
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!
