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Can the IRS Garnish Your Wages If You’re Self-Employed?

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Independent contractors and self-employed taxpayers may not have to worry about wage garnishments, but that doesn’t mean they entirely free from IRS collection actions. The IRS has many other collection powers at its disposal, so you’re better off resolving your tax problems through negotiation or a settlement.

How Wage Garnishments Work

Employers handle the following tax matters for their employees:

It’s fairly simple for the IRS to ask your employer to send a larger portion of your pay directly to the IRS. This is how an IRS wage garnishment works, and your employer is obligated to obey the order.

Things aren’t so simple for self-employed taxpayers. You pay both halves of your payroll taxes (known as self-employment taxes) and you withhold your own taxes by making quarterly estimated tax payments.

You may have a few major clients or a few hundred smaller clients. Therefore, it’s impractical for the IRS to attempt to garnish your wages.

Enforced Collection Actions

During the process, penalties and interest will continue to accrue on your back taxes, increasing the amount you owe. If you want to avoid having your bank account drained or a lien placed on your home, contact a tax debt attorney to discuss your options.

Contact an Attorney

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