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Wage Garnishment

If an employee fails to pay his or her taxes, then the IRS has several tactics that they are authorized to use in order to recover this unpaid debt. One of their strategies is wage levies or wage garnishments, where they require an employer to withhold an extremely large portion of your paycheck for the IRS to apply to your outstanding balance. If this happens, your employer is forced to comply with the IRS’s demands as it is against the law for them not to do so.

Wage garnishments or wage levies can be incredibly stressful and can happen to anyone at any time. If this happens to you, it’s important to call an experienced tax lawyer to help inform you of your rights and find the best solution that saves you time, money, and stress.

To schedule a free case evaluation, call (844) STOP-IRS now.

What is a Wage Garnishment?

A wage garnishment occurs when the IRS takes a portion of your paycheck from your employer to apply towards your delinquent taxes. Through the process of “withholding,” the IRS will send a notice to your employer stating that they must withhold a certain amount of your salary each week until all of your back taxes have been paid off. Either way, if you fail to make payment on time, you’ll owe more than just interest and penalties, and additional fines and fees will be tacked on and add up quickly.

How Does the IRS Give Notice of Wage Garnishment?

The IRS sends notices of wage garnishment through the mail to your employer. The form letter states that the IRS has determined that there is a valid reason to collect wages by withholding money from your paycheck. It also explains how much money the government expects to receive from your employer, which is usually the majority of your paycheck.

If you review the wage garnishment letter received by your employer, it is important that you read this letter carefully and consult with an experienced tax professional before signing any IRS documents. The process of IRS wage garnishment is a very serious matter that could affect your personal finances and assets as well as future employment opportunities.

How Much of Your Wages Can the IRS Take?

As an example, per IRS publication 1494, for a single person, the IRS would only allow you to keep $1,045.83 in compensation per month. ALL of the money above that amount must be sent to the IRS!

However, if you work as a 1099 contractor, then the IRS can levy 100% of your compensation from your employer.

How to Stop Wage Garnishment

There are a few steps that you can take to prevent the IRS from withholding money from your paycheck to satisfy your tax debts. After receiving a notice of wage garnishment, you should contact an experienced tax attorney who specializes in this particular issue. They will understand which laws govern wage garnishment and other collection tactics that the IRS is authorized to use.

How an Experienced Tax Lawyer Can Help

with Wage Garnishments

Taxes can be confusing, but they don’t have to be. The best way to navigate your taxes is to hire a tax lawyer who has experience in dealing with IRS issues and can help you understand how it all works.

At JD Tax Law, we are a full-service tax law firm with a proven track record of success. We represent individual and business taxpayers in all aspects of tax resolution, including wage levies or wage garnishments. Our team has over 15 years of experience dealing with the IRS, and we have successfully resolved countless tax issues and provided relief for hundreds of clients.

To get a tax resolution plan that is tailored to your specific tax situation, please contact us for a free, no-obligation consultation.
Schedule a time that works best for you, or just give us a call now!