IRS Wage Garnishment In Minneapolis, MN
The deduction of money from the financial compensation of an employee due to unpaid IRS taxes is known as IRS wage garnishing. This should not come as a surprise as this only happens after the IRS has sent quite a few letters and notices regarding the taxes that are still due.
IRS Wage Garnishment is the IRS’s most forceful tax collecting mechanism and by no means should be taken lightly. Though there are quite a few options available to the IRS, when they feel they have exhausted or already used the other options, they will definitely opt to levy. By learning how tax garnishment works, you can stop or avoid the IRS from deducting your wages.
Just Exactly What Is IRS Wage Garnishment
IRS Wage Garnishment refers to the legal action taken by the IRS to deduct your wages to cover your back taxes or due taxes. This mostly happens whey you don’t pay the taxes yourself. Thus to cover the taxes, the IRS contacts your supervisor or boss and tells them to deduct a specific amount of out of your wages and personally send them to the IRS.
If the supervision fails to do so, then you are held accountable. After your employer or supervisor receives the notice from the IRS, they must comply. The IRS can also deduct your taxes from other available or pending assets such as salaries, wages, bonuses, commissions and possibly even retirement or pension earnings.
The IRS will take 25%, or in some cases even more, of a taxpayers income once a garnishment is implemented. The IRS will send the notices to your last known address before starting the garnishment after meeting the following three requirements:
- The IRS assessed a tax liability and sent you a notice to demand payment.
- If you neglect or refuse to pay the tax amount that was assessed.
- After the IRS has sent you the final notice 30 days prior to when they actually start the levy process.
Stopping IRS Wage Garnishment
Alight, you will be given the notice 30 days before the IRS starts the levy process. This gives you 30 days to either stop or avoid the levy. After assessing your financial situation, the IRS will decide what’s the most logical and do-able method of getting taxes paid from you with or without your consent.
You will be given a notice but will have no say in the matter if you fail to take the appropriate steps. Unless another form of settlement is made, the IRS will continue to garnish taxes from your wages. The best way to stop the IRS is to pay the IRS the full amount owed. Since this is the method the IRS prefers the most, they will be more than willing to terminate the levy.
In the 30 day period you can also try and file for a payment plan or an offer in compromise. The IRS will hold off the levy after seeing you actually trying to pay off the taxes. You can also try and prove that wage garnishment is causing you and your family (especially children) financial hardships. Quitting your job or reducing your income enough to be Declared “Uncollectible” or Filing for Bankruptcy may also hold of or reduce the levy.
Still Need Help?
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