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.

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. 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.

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 mater as soon as possible to avoid it having destructive effects on your financial life.

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