IRS Wage Garnishment

Has the IRS placed a wage garnishment or imposed a levy upon you?

Both of these terms mean the same thing. The IRS is targeting your wages and bank accounts for seizure of back taxes you owe. If you have received notice of this, you should take it very seriously.

Usually you will not receive this notice until you have received repeated notices to settle your debt and pay the back taxes. Know that the IRS would rather you just pay the back taxes they’ve repeatedly sent letters to you about. They just want the back taxes owed before this action is taken.

The IRS does not need a court order to do this. If you have received this notice, this levy will remain effective against you until you pay the back taxes owed in full. This garnishment will be taken out of your paycheck as part of the payroll process of your employer.

Your employer will receive a notice telling them they must withhold a certain amount of your wages for the payment. The employer cannot refuse to garnish these wages. There are also different laws that apply to certain states and how your wages can be garnished. A knowledgeable professional may need to be consulted for legal advice pertaining to the state in which you reside.

The IRS is not allowed to take more than 25% of your weekly income if you are paid by the week. Remember though, there are exceptions to every rule. According to some experts, the IRS can take any amount you earn above $3.83 per hour. Certainly if you are single, you will be paying more. There are some laws to protect you if this has happened.

Because the IRS has taken this action against you, then your employer cannot fire you. There are some fairly serious penalties that would be served on your employer if this should happen. This could be to your advantage since obviously if you are fired the IRS would have an interest in why your employer fired you. Firing you means they cannot garnish the tax money.

What else could this mean to you? You may not have enough money after this weekly garnishment of tax money to pay your bills. This could lead to the possibility of no choice left to you but to file for bankruptcy. This can be particularly detrimental to those who may already have child support payments, student loan payments and other payments already being withheld from their paychecks.

The IRS is required to send you the Final Notice to your last known address. You do not actually have to receive this notice for the notice to suddenly become effective. There are large numbers of taxpayers who have never received the final notice before their wages were garnished.

Not understanding the laws and what is happening to you could lead to your quick financial ruin. You may want to talk to a professional regarding wage garnishment if garnishment has already been levied against you.

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