If you owe money in back taxes, the IRS can legally take any income you make to pay off your federal tax debt. This can cause both financial hardship and embarrassment, as the IRS will contact your employer and require them to send a portion of your income directly to the federal agency.
To avoid this situation, learn how a tax attorney can help you get wage garnishments removed.
Key Insights We Will Discuss
- What does wage garnishment mean?
- How to remove wage garnishments
- Benefits of hiring a tax attorney
How a Wage Garnishment Can Affect You
When you owe the IRS unpaid taxes, one action the federal agency can take to get the money owed is to garnish your wages. This can include seizing your hourly wages, salary, commissions, and bonuses. If the IRS does this, it will contact your employer to inform them that a portion of your earnings must be sent directly to the federal government. When this happens, your employer legally must comply with the agency’s request.
The IRS is not subject to state and federal garnishment limitations, meaning it can take a larger portion of your paycheck than other creditors can. This can leave you with very little money to live on until your debt is paid in full.
If the wage garnishment is causing you financial hardship, the IRS states that you can contact the federal agency to explain your case and try to make other arrangements – like setting up a payment plan – to cover the debt.
Ways to Have Wage Garnishments Removed
While the most effective way to have a wage garnishment removed is to pay off your debt to the IRS in full, there are also other options you and your tax attorney can explore. These can include:
- Set up a payment plan: If you are unable to pay off your tax debt in full, you can work with a tax attorney to request a payment installment agreement with the IRS. This will allow you to make monthly payments- based on your income – to pay off your debt.
- Request an Offer in Compromise: With your tax attorney, you can request an Offer in Compromise from the IRS to settle your tax debt for less than what you owe. An attorney can help you determine which forms to fill out and which information to provide to the IRS to get the best chance of having the federal agency accept your offer.
- Show financial hardship: You may be able to have wage garnishments removed if you can prove to the IRS that paying off your debt will cause you extreme financial hardship. You will need to prove to the federal agency that you cannot afford to pay the debt, which will require you to submit evidence that may include bank statements and paycheck information. The federal agency may not completely remove the wage garnishment, but it may grant you more time to make financial arrangements.
- Appeal the wage garnishment: You have the right to appeal the wage garnishment assessed by the IRS. With the help of an attorney, you can request a hearing to appeal the total amount of your debt.
- File bankruptcy: Another option to have a wage garnishment removed is to file bankruptcy. The IRS is not allowed to collect payments from you until after the bankruptcy case is discharged. While this does not absolve you from the tax debt you owe, it can give you more time to make financial arrangements to pay back the tax debt. You should always consult your tax attorney before filing for bankruptcy to determine if this is the best course of action for you.
How a Tax Attorney Can Help
It’s important to hire a tax attorney to help you get a wage garnishment removed. An attorney can help you file an appeal, assess your tax situation, or present evidence to the IRS as to why the garnishment should be released.
Contact an Attorney
If the IRS is garnishing your wages, call Ayar Law at 800.571.7175 to receive free, no-obligation tax advice from a tax attorney.
- The IRS may garnish your wages to resolve any back taxes you may owe to the federal government.
- While paying off the debt is the easiest way to have a wage garnishment removed, there are other options you can explore with the help of a tax attorney.
- Contact Ayar Law to get free, no-obligation legal advice at 800.571.7175