What is Wage Garnishment?
A wage garnishment is a form of levy that is levied on both your present and future income by the IRS. In a case where a levy is levied on your wages by the IRS, it’s expected and required of your employee to collect a substantial percentage of it and send it on your behalf to the IRS.
Wage garnishment happens for taxpayers who owe tax debt to the IRS, which is referred to as “continuous levy.” Before wage garnishment is implemented by the IRS, the taxpayer should have received tax debt notices directly from the Internal Revenue Services. If the notices are ignored, the IRS notifies your employer to withhold a major part of your paycheck automatically to pay the tax debt balance.
If this is something that you are experiencing, you have options at hand which we will discuss in this page.
You Have a Withholding Order for Taxes
Although there are relief options in place, you will still need to act fast. Once your employer gets the notice from the IRS, they will notify you. With this, you will be able to ask the IRS to conduct a review of your case, which also puts you in a good position to request a Collection Due Process hearing with the Office of Appeals. This request should be made as soon as possible, although you have a maximum of 30 days to file this request.
Schedule a Consultation
If you receive a Notice of Levy from the IRS, contact us and we will work with you on how to put an end to wage garnishment and work out an option that will favor you with the IRS. Our tax consultants will explain the process to you and also explore every available option to you. You must act fast. Contact Global Gate today to schedule a free consultation.
How Does Wage Garnishment Work?
Wage garnishment withholds a taxpayer wages through the employer to pay the amount owed. There are certain factors the IRS considers before withholding a taxpayer’s wages. The IRS can take up to 25% of the disposable income, considering the monthly income and the number of dependents.
It is important to speak with a tax expert to understand your options and help navigate this financial hardship.
What Can You Do About Wage Garnishment?
If you have received notices from the IRS to pay the tax debt, it is recommended to contact a tax professional and let them know your situation. Do not ignore the notices. If your wages are already being held by the IRS through your employer, contact us as soon as possible to provide you with a solution.
How Much of Your Wages Can Be Garnished?
About 25% of your disposable income will be garnished, considering your monthly income and the number of dependents.
What if wage garnishment is a financial burden?
If wage garnishment is a financial burden to you and your family, your number one option is to speak with a tax professional to help you navigate through this financial hardship.
Can Wage Garnishment be Negotiated?
Yes, wage garnishment can be negotiated depending on the situation. As a taxpayer you have the following options: installment agreement, offer in compromise, and currently not collectible. Through these relief options, you or the tax professional you hire has the opportunity to negotiate the terms and amount owed.
What Happens After Wage Garnishment is Paid in Full?
Once wage garnishment is paid in full, the IRS will notify your current employer that the debt has been fully paid.
Frequently Asked Questions?
What is the most wages that can be garnished?
For taxes the amount garnished by the IRS is highly dependent on your current filing status and the number of dependents.
Will wage garnishment hurt my credit?
Wage garnishment doesn’t directly affect your credit score. However, since the court judgment has garnished your wages makes this public record which will show up on your credit report.
Which states do you offer wage garnishment services in?
We help taxpayers nationwide to fix their current financial hardship. Here’s the most common states we work with: California, Florida, Texas, Ohio, Maryland, Arizona, Georgia, PA, New Jersey, Georgia, Wisconsin, North Carolina, New York, Indiana, South Carolina, Tennessee, Kentucky, Missouri, Nevada, Oregon, Alabama, Oklahoma, and Arkansas.
What if the wage garnishment is sent to the wrong employer?
If the wage garnishment notice is sent to the previous employer. The previous employer must file a statutory response form indicating this mistake to avoid any consequences by the IRS for not withholding wages.
Can you go to jail for wage garnishment?
No, you won’t go to jail for wage garnishment.
Can wage garnishment take my bonus?
Yes, your bonus will fall under the wage garnishment rules which will be withheld by your employer. In other words, all salaries directly to the employee are subject to wage garnishment.