Can the IRS really garnish my paycheck?
Yes, they can. Many creditors have the power to garnish your check. But, dealing with the IRS is a whole different ball game. The IRS doesn’t have to go through a court to garnish your paycheck and are also usually able to garnish more than what regular creditors can take.
Prior to garnishment, the IRS will send you a notice in the mail and a Demand for Payment of the amount due. This is important to know because the IRS will never call you first. Scammers try to impersonate the IRS over the phone to scare taxpayers into giving private information. Know that the IRS will always contact you through the mail first.
If you receive a Demand for Payment and fail to pay the invoice, you will receive a Final Notice of Intent to Levy and a Notice of Your Right to a Hearing. Those two documents must be sent you AT LEAST 30 days before the IRS begins garnishing your wages. Before receiving your Final Notice, you should contact the IRS and make an attempt to resolve the issue.
When the IRS begins garnishment, your employer has to comply with them because they are liable. They remit a portion of your wages to the IRS to pay your tax bill. Because the IRS has more power to garnish than “regular” creditors, they can leave you with very little money to live on.
How do you stop wage garnishment?
The IRS will stop wage garnishment if:
-The IRS did not give you the full 30 days to respond to their notice
-You declare bankruptcy
-The IRS learns that the time period to collect the amount due expired before it served the Notice
-The IRS is considering your offer for an installment plan or Offer In Compromise
Community Tax helps many clients facing Wage Garnishment every day and helps them get into the right resolution plan for them. If you are facing wage garnishment, call today for a free consultation!
About the Author: Nick Charveron is a licensed tax practitioner, Co-Founder & Partner of Community Tax, LLC. His Enrolled Agent designation is the highest tax credential offer by the U.S Department of Treasury, providing unrestricted practice rights before the IRS. Follow him on Twitter @VelocityTax