The IRS can legally garnish or seize any income an individual makes to satisfy federal tax debt or back taxes owed. This applies to salary, commissions, hourly wages, and bonuses. The IRS will contact your employer directly and the employer is required by law to comply, within one pay period.
The IRS will contact the employer directly, mailing them the Notice of Levy Form 668-W(c)(D), Form 668-W(ACS) or Form 668-W(ICS) and Publication 1494 (pdf). It explains to the employer how to determine the amount to be sent to IRS on an ongoing basis. The employer will provide the employee a Statement of Dependents and Filing Status that will need to be completed. It will need to be returned within three days to determine the what part of your wages may be exempt from the levy. Once this has been set into motion, the IRS starts to levy (seize) your wages each pay period. This will continue until:
- You make other arrangements to pay your overdue taxes,
- The amount of overdue taxes you owe is paid, or
- The levy is released.
If you are receiving Social Security income, the IRS can garnish that too!
FACT: If you are single with no dependents and getting paid weekly, the IRS can seize the bulk of your paycheck leaving you with as little as $231 per weekly pay period to survive!
Coast One Tax Group has years of experience navigating IRS wage garnishments. Regardless of where you are in the process, be sure you know your rights and have executed them fully in your best interest. Call Coast One Tax Group for a free consultation to explore your options to resolve your IRS wage garnishment today.