IRS Garnishment: What To Expect From the IRS
If you fail to pay on your back taxes, the IRS may commence a collection action where it seizes a percentage of your salary every pay period known as an IRS garnishment or wage levy. Having an IRS garnishment lifted is a difficult and complicated process. The IRS already has direct access to your pay,so IRS has little motivation to negotiate a payment arrangement. This is why it is very important to prevent an IRS garnishment before it starts.
IRS Garnishment Process
A Notice of Intent to Levy will be mailed to you 30 days before the IRS garnishment is to begin. In that time, you are allowed to make payment arrangements with the IRS or appeal the back tax amount. If neither of these steps is taken the IRS will send your employer a Form 668-W to have a portion of your wages withheld from your income, often beginning within the next paycheck. Your employer is required by law to comply. The IRS wage garnishment process is as follows:
- The IRS assesses the Tax Debt owed and sends IRS Notice and Demand for Payment.
- If you refuse to pay or ignore the notice the IRS will send Final Notice of Intent to Levy and Notice of Your Right to A Hearing at least 30 days before the IRS garnishment.
- If you ignore your IRS Notice and Demand for Payment, the IRS will commence with the IRS garnishment.
IRS Garnishment Formula
The IRS has a formula for calculating the amount it will seize from your paycheck. The factors include taxes owed, the number of dependents claimed, and filing status, among other considerations. Generally, you can expect an IRS garnishment will take 30-75 percent of your wages per paycheck.
However, the IRS cannot, by law, put you in financial hardship, or leave you without money to pay for your basic needs. Keep in mind the IRS qualifies "basic needs" differently than many of us. Common household expenses such as cable, private school tuition, multiple cars, or internet do not qualify as basic needs when calculating an IRS garnishment amount. Here are examples of "basic needs":
- Rent or Mortgage
- Utilities: electricity, gas, water only
- Medical Bills
- Basic clothing
- Expenses for commute: mass transportation or gas/payments for one car
IRS Garnishment Experts
If you are burdened by an existing IRS garnishment you should acquire the services of a tax debt resolution professional to help you lift your IRS garnishment immediately. A tax debt expert can save you time in money by stopping your IRS garnishment quicker than if you attempted to speak with the IRS yourself because of three basic qualities:
- Knowledge: Tax Resolution Specialists are composed of experienced Tax Attorneys, CPAs, and licensed Enrolled Agents. These professionals can have years of schooling and training with the U.S. tax code and can put that expertise to use to get you the best resolution to your IRS garnishment problems.
- Speed: Timing is crucial when a large percentage of your income is being surrendered to the IRS every paycheck with the IRS garnishment. A Tax debt professional knows how to quickly negotiate a fair payment plan so that the IRS releases your IRS garnishment.
- Experience: If you're trying to stop an IRS Garnishment, chances are high that you've never dealt with the IRS and their complex rules and regulations before. A tax debt expert is highly experienced in handling a taxpayer's IRS garnishment; knowing exactly what the process entails to get 100 percent of your paycheck back in your hands.
Call now or fill out the form below for a free consultation about your IRS garnishment. We'll only connect you with a tax debt relief company holding at least a B rating with the Better Business Bureau.