IRS Garnishments

A Notice of Wage Garnishment is troubling news. What does this mean for you? How can you protect yourself from a huge pay cut? Let’s examine what a wage garnishment is, why it happened and what can be done to take care of it.

WHAT IS AN IRS WAGE GARNISHMENT?

IRS wage garnishments are another way that the IRS will go after individual taxpayers for their back taxes. After the IRS determines that you owe for tax debt, it will send a letter to your employer demanding a portion of every paycheck you receive (IRS Notice 668-W). The IRS will leave you with the bare minimum to cover basic living expenses, but this amount might not be sufficient. Your employer must adhere to the IRS’ demand or they can get in trouble themselves – including major fines.

WHY DID THIS HAPPEN?

If you have tax debt, the IRS might issue your employer a 668-W Notice. This is its way of collecting the unpaid back taxes you owe. Unfortunately, this is one of the most common enforcement tools that the IRS utilizes to collect back taxes. It is an extremely aggressive tactic. Furthermore, it can prove to be very embarrassing to have an employer know about a personal tax debt situation.

THE WAGE GARNISHMENT NOTICE PROCESS

Don’t be alarmed by a garnishment notice. It’s important to know that the IRS must adhere to a formal process prior to the wage garnishment. The IRS is required to issue a series of increasingly aggressive notices to make you aware of your situation and what steps they may take to collect the outstanding taxes.

If you haven’t received warnings from the IRS, it is wise to look into the process to see if a wage garnishment has been improperly issued. This may be grounds for getting the wage garnishment removed.

YOU RECEIVED THE WARNINGS.
WHAT CAN BE DONE ABOUT THIS PROBLEM?

It is important to know that once the wage garnishment is in place, it can be removed. However, whether you are facing the threat of an IRS wage garnishment or are trying to have a garnishment removed, the most important thing to know is how the IRS collection process works, so that you can be assured that all of your rights are being protected.

Everyone’s financial situation is different, but the best thing to do if facing the threat of a wage garnishment is to be proactive and address the problem head on. First and foremost, get informed. You should arm yourself with as much information as possible before you decide on a resolution plan. One option is an Installment Agreement, which sets up affordable monthly payments to the IRS. If you want to learn how to set up an Installment Agreement, download our free guide.

Also keep in mind, that you can always talk to one of our tax professionals at any step in your resolution process.

The reality is that the IRS would rather resolve your tax issues than issue an IRS garnishment. Still, individuals receive copies of wage garnishment notices in the mail everyday.

20/20 Tax Resolution can be your resource for moving forward and freeing yourself from the burden of tax debt problems. Start your resolution today.