If you are struggling with a wage levy, it can be difficult and frustrating getting it resolved on your own. The good news is that help is available.
Whether you decide to try and navigate the IRS on your own or hire a tax specialist to help you out, either method can yield positive results.
That being said we do recommend hiring a professional as they are familiar with navigating the IRS and have a higher success rate than someone doing it for the first time.
Read on to learn more about tax wage levies and how to get them resolved.
The IRS levy process
- Notice of Demand for Payment (30 days)
- Final Notice of Intent to Levy
- Paycheck Garnishment
IRS Notice of Demand for Payment
The first letter the IRS will send is a Notice of Demand for Payment. The notice indicates that the Internal Revenue Service (IRS) expects you to pay a certain amount of money by a specific date.
Failure to pay the requested amount on time could result in additional penalties and interest charges being added to the balance due. If you are able to make payment in full, it is important to do so as soon as possible.
If unable to pay in full, other options such as an installment agreement or offer-in-compromise may be available.
It is also important to contact the IRS if you believe that any information on the notice is incorrect. The IRS will work with taxpayers who contact them promptly and attempt to resolve their account issues quickly and effectively.
IRS Wage Levy Notice
The IRS wage levy notice is a document issued by the Internal Revenue Service (IRS) that orders a person or business to pay back taxes. The IRS will provide information about the amount of taxes owed and when they must be paid.
It may also include details about any penalties, fees, or other assessments associated with the unpaid taxes. The notice will also explain the consequences of not paying the tax owed in full and on time, such as wage garnishment, property seizures, or liens against assets.
If you receive an IRS Levy Notice, it is important to take action quickly to avoid further legal repercussions.
Not responding to the IRS will result in asset seizure or wage garnishment, where your employer’s responsibility will be to withhold a portion of your payroll earnings until the balance is paid in full.
What Is a Wage Levy In Regards to Taxes?
An IRS wage levy to collect tax debt is a legal action taken by the IRS department of revenue or state tax authorities to collect back taxes.
This process allows them to take a portion of an employee’s wages directly from their employer in order to pay off any outstanding taxes owed. The levy will continue to be withheld from your paycheck until the tax is paid in full.
Generally, this type of levy can occur if an individual has failed to pay their taxes in full and has not responded to other attempts at collecting the debt. In some cases, it’s possible for individuals to work out payment plans with the IRS or state tax authorities in order to avoid having a levy on wages applied.
It’s important for taxpayers to understand the implications that come when the IRS issues a levy, as it can have long-term financial impacts and will remain in place until all payments are made or other arrangements have been made.
How Much of Your Wages Can the IRS Take?
The amount of money that the IRS can take depends on how much salary the taxpayer earns and other factors such as deductions, number of dependents, exemptions and filing status.
Generally, the IRS will take up to 25% of your disposable income or the amount by which your disposable income exceeds $268 per week, whichever is less.
Additionally, if you owe money to the IRS from previous years, they may take more than your usual tax amount to cover the debt. In extreme cases, such as not filing or not paying taxes, they may garnish up to 100% of your wages until the balance is paid off.
Ultimately, it’s important to stay up-to-date with current tax regulations and make sure you file and pay any outstanding taxes in a timely manner to avoid any unnecessary complications with the IRS.
What Kind of Wages & Assets Can the IRS Take or Levy?
The Internal Revenue Service (IRS) is able to levy wages and tangible assets in order to collect an unpaid tax debt.
Here are the most common assets the IRS comes after.
- Wages from employment
- Bank accounts
- Social Security benefits
- Retirement income
- Stocks / Bonds
The IRS can also seize your property such as your car, boat, or any real estate you own and sell the property to pay off the tax debt.
In addition, any future federal tax refunds or state income tax refunds that you’re due, may be seized and applied to the balance of your federal tax debt.
It is important to note that the IRS will only levy wages after all other collection options have been exhausted and if it can be done without causing financial hardship for you and your family.
What Are the Laws on IRS Wage Garnishment? What Are My Rights?
The laws on IRS wage garnishments are quite clear; the IRS can legally take a portion of your wages in order to pay off any unpaid taxes. The total amount taken will depend on how much you owe and is generally up to 25% of your disposable income or the amount of money remaining after taxes and other deductions. However, this number can be adjusted depending on your individual circumstances.
As for your rights, you are allowed to contest the action if you believe that the IRS is taking too much or if it is causing undue financial hardship.
Furthermore, certain types of income such as veterans benefits are exempt from being garnished by the IRS.
If you are subject to wage garnishment, it is important to seek professional advice from an experienced tax specialist or certified public accountant who can help you negotiate with the IRS and explore other options that may be available to you.
How Can a Tax Professional Help With IRS or State Wage Garnishment?
A tax professional can be very helpful when it comes to dealing with IRS or state wage garnishment. They can provide expert advice on how to handle the situation, such as negotiating a payment plan or appealing the garnishment.
They can help you make sure the garnishment is in accordance with the law and that you are not being taken advantage of.
The tax professional can also review your financial information and submit the proper forms to help reduce your taxable income and possibly reduce or eliminate the amount of money owed.
Additionally, they can help you determine if there are any exemptions available that could help you avoid or reduce a garnishment. A tax professional is your best bet for getting through an IRS or state wage garnishment in an efficient and effective manner.
Give us a Call to get Immediate Help With your Wage Levy
If you are facing wage levy issues, don’t hesitate to give us a call at 877-860-3731.
Our knowledgeable and experienced staff will provide you with expert help and advice on how to handle your Levy.
We understand the stress and frustration that comes with having your wages garnished, so we aim to provide you with quick and effective solutions.
Our team of financial experts can help you negotiate with the IRS, review payment options, and even file appeals if necessary.
Whether you are in need of immediate relief or long-term strategies for managing your debt, our team is here to assist you every step of the way.
Don’t wait any longer – Contact us today and let us help get your finances back on track!