Call us at (844) STOP-IRS or (844) 786-7477

What Is IRS Wage Garnishment?

Feb 9, 2024

Dealing with the IRS can often feel like going through a maze, especially when understanding wage garnishment. At JD Tax Law, we’re here to illuminate this process and offer a helping hand. IRS wage garnishment is a tool the IRS uses to collect unpaid taxes directly from your wages. But don’t worry, you’re not alone in this. Let’s dive into what this means and how you can address it.

Understanding IRS Wage Garnishment

IRS wage garnishment is a legal process used by the Internal Revenue Service (IRS) to collect unpaid taxes directly from an individual’s wages or salary. Here’s a detailed explanation of how it works:

  1. Initiation of Wage Garnishment: The process starts when you have unpaid taxes and have yet to make arrangements to settle them. The IRS first attempts to communicate with you by sending notices demanding payment. These notices are not just friendly reminders; they are official and urgent requests for you to address your tax debt.
  2. Notice of Intent to Levy: If you do not respond to these initial notices or fail to pay the owed amount, the IRS escalates the situation by sending a final notice, typically called a “Notice of Intent to Levy and Notice of Your Right to A Hearing.” This notice is sent at least 30 days before the garnishment begins, allowing you to take action to prevent it.
  3. Employer’s Involvement: If the tax debt remains unresolved after the notice period, the IRS contacts your employer directly. The IRS instructs your employer to withhold a certain portion of your earnings and send this amount to the IRS. This withholding continues until the tax debt is fully paid, or another arrangement is agreed upon.
  4. Amount of Wage Garnishment: The amount garnished from your wages is not arbitrary; it is calculated based on your filing status, pay frequency, number of dependents, and standard deductions. The IRS follows a set table to determine the exact amount to be deducted. This can result in a significant portion of your paycheck being withheld, depending on your specific situation.
  5. Ongoing Garnishment: Wage garnishment is a continuous process. It isn’t just a one-time deduction from your paycheck; it will continue each pay period until the entire tax debt is paid off or you make alternate arrangements with the IRS.

How Does Wage Garnishment Impact You?

Wage garnishment can significantly impact your financial situation. The amount the IRS takes depends on several factors, including your filing status, pay frequency, and the number of dependents you have. It’s not just a tiny cut – in some cases, the IRS can take a large portion of your paycheck, leaving you with just enough to cover basic living expenses as defined by the IRS.

Can You Stop IRS Wage Garnishment?

Yes, there are ways to stop wage garnishment. The most straightforward method is to pay the tax debt fully, but we understand that’s only sometimes possible. Alternatively, you can set up a payment plan with the IRS, prove that the garnishment causes significant financial hardship, or dispute the amount owed if you believe it’s incorrect. Each situation is unique, so assessing your specific circumstances is crucial.

Going Through the Process

Dealing with IRS wage garnishment can be complex, and the steps to resolve it can be challenging to face it alone. This is where professional assistance can make a significant difference. At JD Tax Law, we have extensive experience dealing with the IRS and can help you understand your options, negotiate with the IRS, and find a solution that works for you.

Contact JD Tax Law for Guidance and Support

At JD Tax Law, we understand the stress and worry of IRS wage garnishment. We’re committed to supporting and guiding you to resolve your tax issues. If you’re facing IRS wage garnishment in Texas, please contact us. Call us at (844) 786-7477 or online to schedule a consultation. Together, we can work towards regaining your financial stability.