Stop Wage Garnishment

Wage Garnishment
 

The IRS can garnish (or seize) your wages if you owe them back taxes. This can be nerve-racking if it happens to you. The big question is, can the garnishment be stopped? The answer is most likely “yes,” but it really depends on your specific situation. One of our experienced tax professionals can guide you through the process required to remove the garnishment.

What is a wage garnishment? A wage garnishment is a form of levy. The IRS and some state taxing agencies have the authority to garnish (or seize) part or all of your paycheck in order to pay your overdue or back taxes.

They are not likely to garnish your entire paycheck, but they can in certain circumstances. Most people are allowed an exempt amount, which is a certain amount of money exempt from garnishment every pay period. This amount is determined in part by a calculation based on your filing status and number of dependents.

Your exempt amount takes into consideration all sources of income. If you have more than one source of income, the IRS could garnish your entire paycheck if the other source covers your exempt amount.

If you receive a bonus check from your employer, it is subject to full garnishment. Since your exempt amount is calculated based upon your normal pay periods, bonus checks, commissions, and similar items are all subject to full garnishment until the tax debt is paid in full.

Will your employer be informed of the garnishment? Before the garnishment starts, the IRS will send your employer a letter informing them of the garnishment along with Publication 1494, which provides the tables indicating how much take home pay is exempt from garnishment. Your employer will give you a Statement of Dependents and Filing Status to fill out. You must return this form to your employer within three days or your exempt status will be considered married filing separately with zero dependents.

How can you stop wage garnishment? The IRS will take a certain amount of money from your paycheck every pay period until one of the following conditions is met:
 

  • You make arrangements with the IRS to pay your overdue taxes another way.
  • Your overdue taxes are paid in full.
  • The IRS releases the levy.

Our experienced tax professionals know how to work with the IRS to stop your wage garnishment. We will take a look at your financial situation and arrange another way for you to pay your overdue taxes. In some situations, we may even be able to dissolve some of your debt.

Get started resolving your tax debt with a free consultation from a tax professional.

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