subject: Facing Irs Wage Garnishment? [print this page] Have you found yourself faced with a wage garnishment or a levy from the IRS? These are actually the same thing and it means that the IRS is currently targeting both your wages and bank accounts. This is of course for the seizure of back taxes that you owe, and if you have received notice, it's time to take action and start taking the situation very seriously!
You will generally have repeated notices to settle your debt and finally pay back taxes, and you need to understand that the IRS would much rather simply receive their money. They will take action, but it is only a last resort.
Note that the IRS does not need a court order to garnish your wages. If the notice has been received, then the levy will be good until such time as you pay all of your back taxes. The garnishment will be taken directly from your paycheck as part of the payroll.
Your employer will be given notice that they need to withhold a specific amount from your check so that you can pay your back taxes. Keep in mind that the employer cannot refuse such an action as they would face legal repercussion themselves. If you want to resolve the situation, then you need to seek the legal advice of a professional in your state.
If you are paid by the week then the IRS cannot take more than 25% of your weekly income but there are exceptions. Some experts state that the IRS has the ability to take anything you owe over $3.83 per hour, and if you are single you can expect to pay more. There are laws however that will prevent this from happening.
There is a silver lining to every bad situation of course, the one here being that your employer can no longer fire you. If your employer were to terminate you, the IRS would level penalties at them and they would want to know why you were terminated. This firing will mean they can no longer garnish your wages which would most certainly be of interest to them.
How else can this affect you? In a number of ways believe it or not. For one you might not have enough money to pay your bills. You may even need to file for bankruptcy which can be problematic for those who have child support payments or even student loan payments.
The Final Notice must be sent to your last known address, but you do not actually have to see it. There are many taxpayers that never saw the final notice before the wage garnishment, much to their dismay.
If you do not understand the laws or what is happening, you could fall into financial ruin very quickly. Talk to your legal professional and learn more about wage garnishment today.
