IRS Wage Garnishment

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In order to collect what you owe, the IRS can lay claim to “any type of real or personal property that you own or have interest in.” That includes wage garnishment. To pay off your debt, the IRS can legally claim a portion of your paycheck before it even lands in your hands! Additionally, unpaid taxes can accumulate large amounts of interest which will increase your debt and prolong the garnishment of your wages.

At Franskoviak Tax Solutions, we are dedicated to helping taxpayers contest wage garnishment and negotiate with the IRS and state government to put an easier payment solution in place. In fact, we’ve had IRS wage garnishments released in as little as 24 hours!

If you are looking for a CPA with a wealth of tax knowledge and the ability to provide you with the comfort and personal care you need, we’re here for you. Contact us today to schedule your free consultation.

Frequently Asked Questions About IRS Wage Garnishment (FAQ)

What is an IRS Wage Garnishment?

Wage garnishment occurs if you owe back taxes to the IRS, and you ignore the notices or phone calls and don’t make arrangements to resolve the debt such as an installment agreement or Offer in Compromise.

If this occurs and the tax remains unpaid then the IRS will search for levy sources including your most recent employer.  Once found they will then send a notice of levy to your employer.  Once the IRS garnishes your paycheck, your employer will deduct from your net after tax pay an amount determined by IRS Publication 1494.  Until the levy is released your employer will be required to do this every payroll until the IRS sends a notice of release.

What is the maximum amount the IRS can garnish from your paycheck?

With an IRS wage garnishment the IRS publication 1494 instructs how much is exempt from levy for net after tax wages.  If you are single and earning $4,000 per month the IRS can garnish 35% of your gross wages, leaving you with only $ 1,367 to live on.

If the IRS garnishes my wages will it affect my credit score?

A wage levy or garnishment will not affect your credit score directly, however if the IRS also files a tax lien then that would impact it.

Can my employer fire me for wage garnishment?

If an employee’s wages are being garnished for a single debt, then federal law protects you from being fired. Although, if your wages are being garnished for two or more debts, your employer does have the right to fire you if they wanted to.

Can an Attorney or Tax Accountant help stop a garnishment?

I would agree that hiring a professional to work with the IRS is best, especially one that has experience working with a Revenue Officer and the Collection Division. I have seen many cases whereby the IRS Revenue Officer will threaten and bully into payment agreements that they cannot afford.

How can I stop wage garnishment once it starts?

Hiring an experienced tax professional is the best way to stop wage garnishment.  At this point you need immediately help, and an experienced Tax Pro will have the knowledge and expertise for dealing with IRS procedures and will represent your Legal Rights. Trying to handle it on your own will most likely result in bad consequences and make matters worse.  An experienced tax pro can get immediate relief by getting the levy removed and possibly getting an Offer in Compromise settlement .

Can I pay the wage garnishment in full? And what happens once it’s paid?

If you pay the wage garnishment in full, then the IRS will issue a release of wage levy to your employer once it is paid.

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