Our tax pros are experts in wage garnishment laws and can help you get your paycheck back.
When you owe the IRS money and fail to pay it, they will initiate collection actions against you. IRS wage garnishment, also known as a wage levy, is one method they employ to satisfy your tax debt. Wage garnishment allows the IRS will seize part of your wages each pay period until your tax debt is paid in full. Unlike other creditors, however, the IRS does not need a court order to garnish your wages.
You will not receive notification of an IRS wage garnishment until it happens. This is because the IRS sends the wage garnishment notice to your employer. The IRS will mail the wage levy and the IRS wage garnishment table to your employer, letting them know exactly how much to take from your check. Your employer will give you a form (Statement of Dependents and Filing Status) to complete and return within three days. If you don’t return the form in time, your exempt amount is figured as if you are married filing separately with no dependents.
The IRS will generally take 25% or more of your income. If you are single (no dependents), the IRS is required to leave you a minimum of $1,033.33 a month. That increases to $2,066.67 for married individuals without dependents. If you have more than one employer, the IRS may allocate the exemptions to one income source and levy 100% of the income from the other employer. Regardless of how much is garnished from your paycheck, you will still be responsible for paying income taxes on the full amount earned.
An accounts receivable (AR) levy is generally used by the IRS to pay off back taxes owed by those who are self-employed. Unlike wage garnishment, where only a percentage of the paycheck is taken, an AR levy can take the entire check due (up to the amount of taxes owed). It is a one-time occurrence, but the IRS can manually request it over and over again until the debt is paid in full.
IRS wage garnishment is a serious matter. It can leave you with little income to live on, as well as potentially jeopardize your employment opportunities. There are, however, a few ways you can stop the IRS from taking your paycheck.
If you are at risk of losing your paycheck due to IRS wage garnishment, contact Tax Defense Network. Our tax professionals have decades of experience helping taxpayers, just like you, get out of tax debt. Schedule a free consultation today and take back your paycheck!