Wage garnishments, an order that requires an employer to withhold part of a person’s earning so the individual can pay off their tax debt, happen to many tax debtors.
You may be facing wage garnishment if you:
- You may be facing wage garnishment if you:
- Forgot to pay taxes one year
- Avoided paying taxes for financial reasons
- Significantly underpaid your tax liability
- Defy taxation all together and don’t pay for years
In addition to the IRS, wage garnishment can also be issued by courts and federal agencies. Types of income that can be garnished include salaries, wages, bonuses, commissions, and retirement or pension earnings.
If you want to avoid wage garnishment, you’ll need to contact the IRS as soon as an “Intent to Levy” or Notice of Levy letter is received. Next, you’ll need to set aside some time to meet with the IRS. You don’t want to deal with the embarrassment of having your employer receive an “Order to Withhold Taxes” letter from your wages. Finally, get a tax expert like Florida Tax Solvers on your side. We can contact the IRS to negotiate stopping a wage garnishment.
The Wage Garnishment Process
- IRS sends a Notice and Demand for Payment.
- If you don’t pay the tax, the IRS will send a “Final Notice” 30 days before the wage garnishment begins.
- The Final Notice may be served by the IRS in person, at the taxpayer’s home or usual place of business. The taxpayer doesn’t need to actually receive the notice for it to be valid (they may not have a current address for you). As a result, some taxpayers get wages garnished without ever receiving a notice.
Federal law limits the maximum amount that can be garnished to the lesser of 25% of your disposable income or 25% of your weekly wages that are over 30 times the minimum hourly wage. If it’s child or spousal support, up to 50 percent of your disposable income can be garnished. Your income typically can’t be garnished if it comes from Social Security, retirement plan or public assistance benefits. In addition, your income usually can’t be garnished if it comes from workers’ compensation awards, unemployment benefits or disability benefits.
One thing to know is your employer can’t fire you because of the inconvenience of dealing with a garnishment for a tax debt. You can, however, be fired for having more than one wage garnishment.
Tax attorney Steven N. Klitzner and his associates have the knowledge and the experience necessary to assist you withwage garnishment problems. Dealing with tax problems can be one of the most stressful times of anyone’s life; don’t handle it alone – you need a tax attorney who specializes in tax law and in helping people get rid of their IRS tax problems.
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