Managing Wage Levies and Garnishments: Tips and Strategies

If you're facing wage levies or garnishments, you're not alone. According to the Federal Trade Commission, wage garnishments are one of the most common ways that creditors collect on debts. And while wage levies and garnishments can be stressful, they don't have to be. So, if you're ready to learn more about wage levies and garnishments, let's get started.

What is a Wage Levy or Garnishment?

A wage levy, also known as a wage garnishment, is a legal way for the IRS to collect taxes. The IRS will take your wages directly from your paycheck and send the money to pay your tax debt.

The wage levy will continue until your tax debt is paid off or the IRS releases the wage levy. The IRS will release the wage levy if you agree to another payment arrangement, such as an installment agreement or offer in compromise.

The wage levy could have a devastating effect on your finances. You will have less money to pay your other bills, and you may even have trouble paying your basic living expenses.

The IRS can garnish up to 70% of your disposable income, which is the amount of your paycheck that is left after taxes, FICA, and other mandatory deductions. This could leave you with very little money to pay your other bills.

The IRS can garnish your wages even if you don’t have enough money to pay your other bills. This can cause you to fall behind on your mortgage, car payments, and other bills. The IRS can garnish your wages even if you don’t have enough money to pay your other bills. This can cause you to fall behind on your mortgage, car payments, and other bills.

When Can the IRS Levy Your Wages?

The IRS can levy your wages if you owe back taxes, and you have been given ample opportunity to pay your taxes or work out a payment plan. The IRS will send you a Notice and Demand for Payment that will give you 10 days to pay your taxes in full. If you don’t pay your taxes, the IRS will send you a Final Notice of Intent to Levy and Notice of Your Right to a Hearing. This notice will give you 30 days to request a hearing with the IRS Office of Appeals. If you don’t request a hearing, the IRS can begin garnishing your wages.

What are Your Rights When it Comes to Wage Levies or Garnishments?

The first thing you should understand is that the government has the right to take action against you if you owe taxes. The IRS has a number of methods they can use to collect on the money you owe them, but one of the most common is called a wage levy or garnishment. With a wage levy or garnishment, the IRS can take money directly from your paycheck. But, the IRS is not allowed to take more money from your paycheck than what you owe.

If the IRS does take more money from your paycheck than what you owe, you can file a complaint with the Treasury Inspector General for Tax Administration (TIGTA). TIGTA is responsible for investigating complaints about the IRS and the methods they use to collect on money owed. If you file a complaint with TIGTA, the investigation will be independent of the IRS and will be conducted by TIGTA. If TIGTA finds that the IRS violated the law, they will report the violation to the IRS Commissioner.

The IRS Commissioner is required to take corrective action to prevent the IRS from violating the law in the future.

Options for Dealing with Wage Levies and Garnishments

If you are facing wage levies or garnishments, it is important to understand your rights and options. You may be able to negotiate with the IRS or your creditors to reach a payment plan or settlement. In some cases, you may be able to have the levy or garnishment released. If you are unable to reach a resolution, you may need to file for bankruptcy. Whatever route you decide to take, it is important to seek professional help to ensure that you are taking the best possible course of action for your unique situation.

Need tax consulting services? Call Hawk Tax Solutions! Our firm aims to provide results-driven solutions that eliminate all the hassles of computing what you owe the U.S. government. We’ll help you deal with the hassles of wage levies or garnishments, set up an appointment with a Hawk Tax Solutions expert today!