IRS Wage Garnishment

IRS Wage Garnishment

IRS Wage Garnishment

When a taxpayer falls behind on their tax bill, they may face harsh penalties from the IRS. When tax bills go unpaid, fees and interest can be added. Plus, the IRS has the authority to take collection actions against taxpayers. Collection attempts can include liens, levies and wage garnishment. With an IRS wage garnishment, money is deducted from a taxpayer’s pay. This money is sent directly to the IRS by the taxpayer’s employer.

The IRS has full authority to legally seize a person’s wages in order to satisfy the back-tax debt. By law, the IRS can only take so much from a person’s pay. However, that amount can still be significant and is determined by various factors. The taxpayer facing an IRS wage garnishment will receive a notice prior to the IRS garnishing wages.

When this occurs, it is important not to get angry with the employer. Your employer or the payroll processing department has no control over the IRS garnishment notice and must comply with the requirements set forth in the garnishment order. When ordered to do so, an employer is legally required to withhold a certain amount of money from each paycheck. Those with questions, should speak directly to the IRS or contact a tax professional for assistance.

It may seem scary facing IRS wage garnishment action. However, before the IRS can start taking money from paychecks, there are guidelines they must follow. Understanding these guidelines may help taxpayers to possibly challenge and avoid garnishment. Therefore, it is important to seek help from a tax professional.

First a person’s tax bill must be calculated. The final tax bill amount is determined by filing a tax return or when the IRS files substitute for a tax return for a taxpayer.  In the event that amount goes unpaid, the IRS will send a notice and demand payment for the money owed. If this invoice is not paid and goes ignored, the IRS will send out other urgent notices. If the taxpayer takes no action, thereafter the case will be forwarded to IRS Automatic Collection System, ACS.  The ACS will issue Final Demand for payment. This notice is a Final Notice of Intent to Levy and a Notice of Your Right to a Hearing. This Final Notice must be sent at least 30 days prior to the IRS garnishing wages.

Ignoring all communication and notices from the IRS is the worst thing a taxpayer can do. Avoiding IRS notices or communication makes it look like a person is trying to avoid paying their annual taxes. It is in the best interest of the taxpayer to reach out to the IRS or a tax professional before the Final notices are sent out, so you may be able delay or avoid the government garnishing on your wages.

Talking to the IRS and explaining the situation may help delay the garnishment. During this talk, discuss the different options available. It may be possible to set up a payment plan or if qualified apply for an Offer in Compromise to settle the entire tax bill for less than what is owed. Once the 30-day notices have been received, an appeal (Collation Due Process Hearing, CDP) must be filed to stop the proposed garnishment or collection action. The appeal is just to dispute the IRS collection or Garnishment action and to request Collection Alternative to the action proposed by the IRS Collection unit.

Those struggling with back tax debt and facing IRS wage garnishment may need to seek help from a tax professional. He or she can discuss options on how to stop the garnishment. Plus, the tax professional knows how to negotiate with the IRS and exercise the taxpayer’s appeal rights. It is important to come to an agreement or take necessary actions which is beneficial and in the best interest of the taxpayer.


Share on facebook
Share on google
Share on twitter
Share on linkedin
Share on pinterest

4.8 out of 5 star

10 reviews

Jess T.
2019, July 30, 5:31 pm

Coast one Financial saw my family through

Coast one Financial saw my family through our entire settlement to the end! They did everything they promised, and got us a major settlement savings! My husband and I can\'t thank them enough!

2019, June 20, 1:42 pm

Coast one helped me out when I was up against the IRS

Coast one financial group helped me out when I was up against the IRS with a debt of close to $15,000. My ex husband left me in a bad place financially having lied on our last joint tax return. I also had some health issues that kept me from paying my taxes and instead paying for health insurance. Coast one handled all correspondence to and from the IRS as well as kept in touch with me throughout the whole experience. I settled for pennies on the dollar and can now resume my life tax debt free. I\'m so grateful for their help.

Donna S
2019, June 20, 1:31 pm

Coast one save me $34,000 in *** tax debt

Coast one save me $34,000 in *** tax debt the entire team worked me to get all info need for my settlement. I saw advertisement on tv for Coast One and had no I dead they could help me. We settled $440 great job guys!!!

Julie Churchill
2019, May 15, 1:43 pm

I was very happy

I was very happy with all people and quick responses. I would highly recommend this company

Cindy L
2019, May 3, 1:32 pm

My husband and I had about $40,000 in tax debt

My husband and I had about $40,000 in tax debt from some difficulties we had experienced a few years ago. The *** refused to make payment arrangements with us after we’d broken our past agreement following a job and personal losses. We’d seen these tax relief advertisements but wondered if it would work for us. I got an offer to help us by Coast One Financial Group.. I called them and left a message. An attorney called me back and asked if he told me for a few thousand (about $3000 I think) I he could help eliminate $10’s of thousands of dollars of *** debt. I said i’d Love to but didn’t have enough to pay them. He offered us a payment arrangement that we could afford and we did it. We ended up paying the *** $259.00 in exchange for eliminating $40900 of tax debt. We got the letter this week that our tax lien will be lifted within 30 days. This year we filed our taxes and paid them in full! What a relief and burden was lifted thanks to Coast One Financial and their attorneys. I would recommend them to everyone. They are amazing!

Reply from Coast1Tax :

2019, May 3, 1:32 pm

Thank you!

stephen k
2019, May 2, 1:59 pm

will tell many people to call

was very happy with the outcome will tell many people to call coast one for help and thank you.

Reply from Coast1Tax :

2019, May 3, 1:59 pm

Thank you!

Reginald G
2019, April 3, 2:00 pm

Coast One is the best hands down

Coast One is the best hands down, I would recommend Coast One to anyone who has any *** trouble. Everyone have had the up most respect for me situation and took time to walk me through it every step of the way until things was resolved properly. My hat goes off to the whole team. You guys rock

Reply from Coast1Tax :

2019, April 3, 2:00 pm

Thank you!

Cynthia K
2019, March 25, 2:01 pm



Reply from Coast1Tax :

2019, March 25, 2:01 pm

Thank you!

Ranting with Reg Hollywood
2019, January 15, 1:46 pm

step by step guidance

Thank you so much for your patience and step by step guidance, You guys are great and would recommend anyone who have a IRS problem to you guy. Thanks a million you guys rock. I appreciate everything you\'ve done

S. Atika
2018, August 30, 1:47 pm

I owed $44,000 and walked away paying $123 NO JOKE!

Coast One allowed me to have peace again. I was in debt over my ears and saw no way out. With a little time and patience they took me out of debt and gave me my life back. I owed $44,000 and walked away paying $123 NO JOKE! Thank you to the amazing team at Coast One!

Reply from Coast1Tax :

2018, September 1, 1:47 pm

On Behalf of Coast One, we thank you!

Call For A Free Consultation

If you owe $10,000 or more in back taxes, let our team of Tax Professionals help you today.

A 10 Minute Call Could Save you 92% Or More!