IRS Wage Garnishment
IRS wage garnishment is employed by the IRS when it feels that you owe back taxes. The IRS has the power to go directly to your employer and take out a certain percentage of your salary for a number of weeks or months until it feels it has been paid in full.
IRS wage garnishment is only one tool they have against delinquent tax payers They also have the authorization to seize practically any of your assets that they desire - homes, boats, cars, vehicles, your bank account, etc.
When you are in arrears with your federal taxes, the current IRS wage garnishment laws allow even your social security checks and your social security disability checks to be subject to IRS garnishment of wages.
How IRS Wage Garnishment Works
Before the IRS can begin to take money from your paycheck they will have to first send you a legal notice of intent. This notice is called the "intent to levy".
When you get this you should contact them immediately to determine if you can work out a payment plan with them instead of having them take garnish your salary.
The IRS will also send a notification to your employer who will be legally obligated to withhold the designated funds from your paycheck and send it to them. Fortunately, by law, your employer is not allowed to fired you because of the IRS wage garnishment.
What to Do When You Receive the IRS Notice of Intent
When you receive the legal notice from the IRS, the best thing to do is to contact a good tax attorney who has experience in dealing with the IRS. He will probably be able to work out an IRS debt settlement with the agency in lieu of wage garnishment. Most will also give you a free consultation to allow you to determine if they can actually be of help to you.
Even if your employer has already begun to take money from your paycheck, your attorney can often negotiate with the IRS to release its wage garnishments by arranging a payment plan. And, usually, the payment plan negotiated by a good lawyer will be more favorable than that negotiated by you.
If you decide to have an attorney process your case, be sure to find out exactly what the fees are and that you are able to afford the rates. The last thing that you want to happen is for lawyers fees to put you deeper in debt.
An IRS wage garnishment can be especially hard on you if the company you work deposits money directly into your bank account. The IRS can seize money directly from your account, regardless of the source of the money. As long as its in your account, it is fair game.
It can also be devastating to you financially by possibly inadvertently causing you to bounce checks from having insufficient funds in your account because of the IRS unexpectedly withdrawing funds from it.
How IRS Wage Garnishment Can Be Stopped
If you can satisfactory prove to the IRS that its bank or wage garnishment is placing a financial hardship on you and making it hard on your to live, they will possibly halt the wage garnishment and try to come up with some other means of enabling you to satisfy your income tax obligations. Tacking the IRS on your own can be daunting. But if you find a good tax specialist, he will probably be able to help you in your dealings with the IRS.
Once the IRS wage garnishment begins, it will stay into effect until the amount owed is paid off. If you can get enough funds from other sources and pay off the tax debt, the wage garnishment can end immediately.
Fortunately, the IRS cannot take ALL of your wages. They are limited to taking a certain percentage of your weekly income which varies depending on how much money you make. The amount they can take out is also limited if you have spousal support and/or dependent children.
The important thing is to be as proactive as you can when receiving a wage garnishment notice and to get the matter resolved as soon as possible to avoid it having destructive effects on your financial life.
Benefits Of Using An IRS Tax Attorney To Stop An IRS Wage Levy
The IRS is so powerful when compared to an ordinary citizen. So, it's not exactly a fair fight when you try to negotiate an IRS wage levy yourself. But, many people take up the challenge anyway, and a fair number do succeed. What often happens in these cases, however, is that the IRS will try to pressure you into agreeing to a payment plan in which you pay more than you can comfortably pay and more than you should pay. Remember, the goal of these IRS agents is to collect as much money as they can, not to help you to financially survive enough to pay off your other bills.
However, many take the easier route of hiring an IRS tax attorney, even though it will cost them some money.; The benefit of using a tax firm to do your negotiations for you is that many of them have retire IRS agents, certified public accountant, and experts who have extensive experience in negotiating with the IRS. In other words, the good ones are more than a match to go up against the IRS. Because of this, they can often get you a better deal.
If the IRS has already begun to take money from your paycheck, some of the more aggressive IRS tax attorneys can stop an IRS wage garnishment in as few as one or two days. If your situation is one such as you are severely cash strapped, this can be critical in, at least, give you a bit of breathing room and allow you to continue to receive your sorely needed cash to pay your bills.
Because of their expertise, using tax attorneys to stop IRS wage garnishment may allow you the best chance of coming up with a reasonable solution to your debt problem.
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