If you are facing an IRS wage garnishment, it is important to act fast in order to limit the impact it has on your financial wellbeing. The IRS will continue to take money with little regard to your other financial needs. There are many methods that can be used to stop a wage levy. The method you use should be determined by your tax, financial, and work situation. The most ideal method is one that resolves your tax problem and stops the levy.
In the ideal situation, a wage garnishment will be stopped and taxes will be resolved at the same time or very soon afterwards. When the IRS sends their final notice of intent to levy, they mention that you need to pay in full or come to some other form of arrangement to prevent the levy from happening. You can typically do that even after the levy has taken effect. Below are some methods to pay in full or make some other arrangement.
Pay Taxes in Full
Once taxes have been paid in full, the wage garnishment will immediately stop.
Enter Into an Installment Agreement
An installment agreement is a plan between you and the IRS that says you will pay your tax debt in monthly increments until everything has been completely settled. Once you have an installment agreement accepted by the IRS, the wage garnishment will be stopped. You will remain in good standing with the IRS as long as you keep up on your monthly payments and do not default on your agreement. The IRS prefers this method to be used if taxes cannot be paid in full.
File for an Offer in Compromise
An Offer in Compromise is an IRS program that allows taxpayers to settle for less than the total amount that they owe. It is a very hard filing to obtain. Only a small portion is actually accepted by the IRS. If you are considering this type of filing, you should consult with a tax attorney to see if you are a likely candidate. When you file for an offer in compromise, your wage levy will typically be delayed until your offer has been reviewed. It will not stop it if the IRS thinks you are using the filing as a stalling tactic. If your offer is accepted, you will be considered in good standing with the IRS and no wage levy will exist.
Get Declared Uncollectible
The IRS does have some guidelines as to when it is unfair to collect from a taxpayer. The only problem is they will not stop collecting until it is proven to them that it is unfair to collect from the taxpayer. If you can prove to the IRS that the garnishing of your wages causes financial hardship, the garnishment will be stopped.
It is only a temporary solution and does not resolve the tax problem. It can buy some time to resolve the problem, because the IRS will reassess your situation at sometime in the future to determine if you are in a financial situation where it would not cause financial hardship to collect.
IRS garnishment can be very difficult. It is important that you act fast to limit the effectiveness of this collection method. It is highly suggested that you consult with a tax professional when dealing an IRS wage garnishment because they can quickly analyze your tax, financial, and work situation to create the best solution for you. Visit TaxDebtHelp.com to find more solutions to handling IRS wage garnishment and help.