What To Know About Wage Garnishment
Although it has a loftier image, the IRS is really not unlike any other creditor. If you owe back tax debt, the IRS will not simply walk away and forget about it. On the contrary, the IRS will pursue and attempt to collect your tax debt in a more aggressive manner than most other creditors. Wage garnishment is just one tool among others that the IRS has to collect back tax debt.
If you currently have tax debt, easily the worst thing you can do is ignore it. Pretending that the debt isn’t there will only exacerbate the situation, as the IRS can tack on additional penalties and interest. The sooner you confront this problem, the better off you will be from both a financial and personal perspective.
Unlike other creditors, the IRS does not need to obtain a court judgment before it begins to garnish your wages. Most people assume that it would, given that other creditors need a judgment to garnish wages. The IRS is different. If the IRS decides to pursue wage garnishment, it can begin to seize your wages immediately.
Though the IRS does not need a court order to garnish your wages, it will almost always need to notify you of its intent to collect before initiating the garnishment process. The IRS will send you a formal notice of its intent to seize your assets to satisfy your tax debt. This notice will provide a detailed explanation of your tax debt situation and instructions to follow if you wish to avoid forfeiting your assets. If you do not take the steps to resolve the situation, the IRS will move forward with its collection efforts. Typically, you will have 30 days to take action.
- The IRS uses wage garnishment to seize your wages to repay tax debt.
- The IRS does not need a court order to initiate the garnishment process.
- The IRS will provide notice before initiating the garnishment process.
How to Stop Wage Garnishment
Nobody likes having their wages garnished. The good news is that taxpayers have several options to remove a garnishment after it has started.
However, it’s important to understand that you will almost always need to pay a portion of your tax debt in order to stop wage garnishment.
The first and most straightforward way to immediately halt a wage garnishment is to pay your back tax debt in full. Not every taxpayer can manage this financially, though, so the IRS provides alternatives such as installment agreements or offers in compromise.
Here at Boxelder Consulting, we understand the importance of a tailored resolution plan that focuses on the results that you want to achieve. Armed with decades of combined experience negotiating with the IRS, our licensed tax professionals always consider which resolution plan will save you the most time and money in the long run.
- Wage garnishment can be stopped after it has started.
- You have multiple ways to remove a garnishment order.
- You will almost always need to pay at least some of your tax debt to stop the process.
Wage garnishment is no laughing matter. If you find that the IRS has started to seize your wages to pay back tax debt, get in touch with Boxelder Consulting today. Our licensed tax professionals will review your case, determine the best path forward, file the necessary paperwork, and negotiate directly with the IRS on your behalf.