IRS Wage Levy or Garnishment

 

Facing an IRS Wage Levy or Garnishment?

Wage LevyIn attempt to collect debts owed to them the IRS will garnish or levy your wages. This will happen after the IRS has sent you three notices followed by an Intent to Levy and multiple demands for payment in full. Payment in full includes all penalties and interest that accrued on your debt since your account was delinquent. If the IRS feels that you are ignoring your tax liabilities they will take collection action and enforce a wage levy.

To determine the amount of your wage levy, or garnishment, the IRS uses what is called the National Standard, which applies to food, clothing, transportation and healthcare expenses. The standard applies to all taxpayers regardless of local cost of living or any other fluctuating expense factors. The National Standard only varies depending on your family size and it is used to determine how much you absolutely need to live and take care of your dependents. This is a very generic estimate that will not take into account many factors that vary greatly from household to household. Regarding a wage levy, the IRS states on their website (www.irs.gov) that, “Taxpayers and their dependents are allowed the standard amount on a per person basis, without questioning the amount actually spent.”

If the IRS has already begun to garnish your wages it means that they have contacted your employer’s Human Resources department and issued a legal wage levy. They provide your employer with the calculated amount they believe you need to live and require the HR Department to withhold the rest to put toward your tax debt balance.

Wage GarnishmentWhile your wages are being garnished your tax debt is still accruing Interest and Penalties that the IRS will expect you to pay unless you are able to negotiate other terms of agreement to settle your debt.

If you contact OMG Tax after your wages are already being garnished we may be able to negotiate with a Revenue Officer to have the wage levy put on hold until a compromise has been met. However, depending on your situation this may not be possible. You will greatly increase your chances of halting a wage garnishment if you contact us as soon as you receive an Intent to Levy notice.

Contact us immediately if you have received an Intent to Levy notice from the IRS so we can discuss your situation and options.

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