What are Wage Garnishments?
A wage garnishment is a process where a state court mandates an order requiring your employers to withhold a certain amount of your paycheck and direct the finances to the creditor with whom you owe money until your amount is resolved. However, the IRS can garnish your wages without having to go through the state court requirements that most other creditors are required to do. Usually, an IRS wage garnishment will continue until your owed tax is paid off. However, there are legal limits on the total amount of your paycheck that can be garnished. Understanding the IRS wage garnishment process can allow you to challenge, mitigate, and even halt IRS wage garnishments.
Some common reasons for wage garnishments include:
The IRS will give you several notices before they begin garnishing your wages. These notices provide taxpayers all the information about the owed tax, including interest, penalties, and taxes that have accrued. On this notice, there will be a date set to which you must pay the amount owed. However, if you fail to pay by the due date, you will receive a notice known as “Final Notice of Intent to Levy” After receiving this final notice, you have 30 days to pay the amount or file a request for a Collection Due Process Hearing before the IRS begins the garnishment process.