IRS Wage Garnishment
What is an IRS Wage Garnishment?
Wage garnishment is an extreme tactic used to collect taxes. It permits the IRS to seize money and property. The IRS can take your wages, money from your bank or financial accounts, attach your Social Security or Pension, and in some cases seize vehicles, real estate or personal property.
The IRS doesn’t need to go to court to garnish your wages. They issue a levy and contact your employer requiring them to send all but a portion of your wages to the IRS. A wage garnishment stays in place until it’s paid off, or until it is released using the appropriate remedies. Your employer is required to wait one pay period before implementing a garnishment.
Stopping Wage Garnishment from the IRS can be difficult, but we’re here to help. The following is directly from the IRS website:
If the IRS levies (seizes) your wages, that money is sent to the IRS each pay period until:
You make other arrangements to pay your overdue taxes.
The amount of overdue taxes you owe has been paid.
The levy is released.
Unless the IRS agrees to some resolution, there are only a few options that can force the IRS to stop your garnishment:
Pay your tax in full.
The statute of limitations expires.
You file for bankruptcy protection (this may not erase what you owe in taxes).
You submit for an Offer in Compromise, or a payment plan.
You show a “hardship” via financial documentation.
The IRS has ten years to collect your delinquent taxes starting when the tax is assessed. Once the statute of limitations expires, for the most part, this is the end to your tax problems. It is important to note filing an offer in compromise, bankruptcy, innocent spouse request, or appeals will stop the running of the statute of limitations.
If you are thinking of waiting out the IRS, you might want to reconsider. The IRS becomes increasingly more aggressive the closer your delinquency gets to its expiration date. You should consider a professional resolution group to contact the IRS and monitor the “status” of your debt.