subject: Approaches To Help End Wage Garnishment [print this page] Taxes are a crucial part of the United States government system. This means that they must be enforced to keep citizens in-check with paying the amounts they owe to keep our government running effectively.
If taxes are not paid in full by the specified date, the government has some aggressive methods to collect the money you owe to the government. If you miss out on paying your taxes, it is important to understand that the goal of the IRS is not to make you suffer.
Rather, the IRS wants to get the money you owe to the government. When you pay this they will stop garnishing your wages, enforcing property levies, or bank account levies.
One of the most common methods of getting tax money by the IRS is wage garnishment. Wage garnishment, also known as a wage levy, is one of the most severe collection mechanisms used.
With wage garnishment, the IRS takes a cut of your paycheck each month. They will continue this until they receive the full amount owed to them.
The IRS will generally take between 30 and 70 percent of each of your paychecks when garnishing your wages. Payments will stop as soon as the full debt is paid off.
Under the Consumer Credit Protection Act, only particular types of income can legally be garnished by the government. General wages, salary, bonuses, commission, or other personal income can be garnished by the government.
Additional income such as tips and bonuses cannot be garnished by the government. There are five basic things that you should consider to help you deal with wage garnishment.
First, is to pay the amount of taxes owed in full. This is the simplest and fastest way to stop wage garnishment. Once they are paid in full the wage garnishment will be stopped immediately.
Second, is to get help from a wage garnishment professional. Their expertise will help guide you through this stressful time.
Third, installment agreements can be made to help you pay off your taxes. Installment agreements enter you into a contract with the government based on monthly payments. Once you enter into an installment agreement you need to be sure to make the monthly payments in full and on-time.
Fourth, you can file for an offer in compromise. An offer in compromise allows a taxpayer to settle their taxes owed for far less than the total amount that they originally owed.
The only way to qualify for an offer in compromise is to meet a strict set of requirements. If you are considering this method, you should contemplate hiring a tax professional.
Fifth, prove financial hardship. This method will not solve your tax problem or make it fully go away. Proving financial hardship will only postpone money collection actions until a later date.
The IRS will wait for a period of time. Then the IRS will look at your financial situation again later. If your financial situation has improved enough you will be required to pay at that time.
If you have to deal with wage garnishment, use this article to help you determine the best method for you.
