IRS garnished my wages, and I'm Freaking out!

By
Education & Training with AMOS Tax Services, LLC

I represent taxpayers in Mercer County and the rest of New Jersey with tax problems that need to be resolved.

You've ignored the IRS's repeated notices that your paychecks will be garnished for past-due taxes, and now you're in a panic because you need those dollars.

There are, however, alternatives open to you. If you pay your outstanding tax debt or enter into a collection agreement or explanation to the IRS that the garnishment is placing you into financial hardship, the IRS may lift a wage garnishment.

Are all of your wages subject to the levy?

Nope, and there is positive news for taxpayers with wage garnishment. Based on your standard deduction and the number of dependents, some of your wages may be free from wage levies. Certain other income, such as some pension and annuity payments and the money required to satisfy child support orders, is also excluded from levies.

Another thing to keep in mind is that your employer will inform you that the IRS has garnished your wages. In the case of wage garnishments, the company won't provide the IRS access to every paycheck. Before delivering the money to the IRS, your company will agree on the amount that is exempt from the levy with you. Wage garnishments have the drawback of being ongoing until the whole amount owed has been paid.

When you receive IRS NOTICES, there are things to do!

Do not disregard them!

The IRS collection notices give you various opportunities over several months to pay your tax bill or reach an agreement with the IRS. Before garnishing your income, the IRS typically delivers a Final Notice of Intent to Levy and Notice of Your Right to a Collection Due Process Hearing (IRS Letter LT11). By asking for a Collection Due Process hearing within 30 days of the date of your Letter LT11, you can also contest a proposed levy.

Best tips for Wage Garnishments

  • Act quickly by contacting the IRS or a tax professional.
  • Tax professionals have experience dealing with the IRS and handling challenging tax issues. Working with a tax professional may assist you in stopping a wage garnishment if the IRS levies it.
  • To decide how to proceed, your tax expert will assess your financial condition and tax burden.
  • The expert will communicate with the IRS on your behalf, easing the stress associated with dealing with tax debt and wage garnishment. Remember that these services aren't accessible; you'll need to pay the tax expert for their help.

So act quickly to resolve the matter with the IRS so you can have peace of mind.

If you or someone you know has a wage garnishment, contact me at (609) 388-9010 or by email at arisay@amostaxservices.com.

Arisay M. Otero-Sanchez, EA

AMOS Tax Services, LLC

Ph. (609) 388-9010

arisay@amostaxservices.com

www.amostaxservices.com

Office Appointments Location:

300 Carnegie Center, Suite 150

Princeton, NJ 08540

Mailing Address:

Suite 11-326

West Windsor, NJ  08550-3123

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