IRS Wage Garnishment
IRS Wage Garnishment - State Tax Wage Garnishment
The Federal or State government can take part (and in some cases ALL) of your paycheck in an attempt to collect back taxes. A state tax garnishment or IRS wage garnishment typically happens as a last resort. Once your employer is ordered to garnish your wages they are bound to do so and are liable for payment.
If an IRS wage garnishment is in your future, then you need experienced IRS tax lawyers in your corner ready to fight for your rights and the protection of your assets and paycheck.
U.S. Federal Tax Rules
Under U.S. federal tax law, a garnishment by the Internal Revenue Service (IRS) is a form of administrative levy. The other option for the IRS is a bank levy, where bank account funds are frozen and seized. In the case of an administrative or an IRS bank levy, no court order is necessary. The IRS can also file a tax lien as an act of finality to collect past due taxes and debt.
The requirements that must be met before wage garnishment commences are:
- The Internal Revenue Service must have assessed the tax and must have sent a written Notice and Demand for Payment;
- The taxpayer must have neglected to pay in full or set-up payment for, or have outright refused to pay the tax within the time prescribed in the notice; and,
- The Internal Revenue Service must have sent a Final Notice of Intent to Levy and Notice of Your Right to A Hearing (levy notice) at least 30 days before the levy. (They may serve the Final Notice in person, may leave the notice at the taxpayer’s home or usual place of business, or may send it to the last known address by certified or registered mail.) The IRS is required to send the Final Notice to the last address known to the agency.
Note: The taxpayer does not need to actually receive the notice for the notice to be effective. Many taxpayers never actually receive the final notice. Those taxpayers may not realize they are in danger of receiving a levy until their wages are actually garnished.
There is a limited window when a wage garnishment can be stopped prior to going into effect. If you have received a final notice from the IRS, contact us today so that we can act on your behalf. We provide free consultations on what options are available to you and we’ll help determine the most appropriate way of resolving your debt, given your circumstances. We’ll also work with the IRS and revenue officers to stop wage garnishment, settle your delinquent account and ensure that inappropriate collection action are avoided.
Call now for a free confidential consultation with one of our experienced IRS Tax Attorneys
(800) NOW-IRS-LEVY or (800) 669-4775.
Strategic Lawyers LLP is a team of IRS lawyers led by Mouris Behboud, a former IRS Attorney who represented the IRS for over 8 years. Mouris knows what the IRS looks for and is a savvy negotiator who will fight hard to reach a swift resolution for your personal IRS tax issue.
Do a local Google search on your state and use the keyword "wage garnishment" to find out what the laws might be in your area. Need to find out what your state’s laws are about wage garnishments? The Department of Labor has a helpful guide on wage garnishment you might want to check out. Here’s a helpful 2011 IRS table for calculating the amount that’s exempt from wage levies.