Once the IRS has levied your wages to collect on back tax debt it’s easy to loose hope and resign yourself to months or years of financial difficulty, however the wage garnishment can be stopped. Even if the IRS has already begun to levy your paycheck there are actions you can take to stop the collections and negotiate a more manageable settlement agreement.
Of all of the draconian methods the IRS has to collect on a back tax debt including, seizure of property, financial assets and financial accounts wage garnishment or wage levy is the worst, the percentage of your paycheck they are allowed to take will vary depending on the number of dependents and any state laws that may act to reduce the allowable amount but never the less a wage levy is usually a very significant amount.
To get the IRS to stop the wage garnishment do not go it alone. Dealing with the IRS can be a scary and making the wrong moves can be disastrous. Locate an experienced tax attorney who specializes in taxation law and tax debt resolution. By working with an experienced tax lawyer you will have a guide throughout the processes and an advocate who will fight to protect your interests.
However before even a tax lawyer can be of benefit you will need to file any back tax returns that have not yet been filed. Under the law the IRS cannot stop a wage levy if there are any years of missing tax returns yet to file. Gather all of your tax documents together before you meet with your attorney to be sure they have all of the available facts.
The next step will be an unpleasant one but you will need to determine what you actually owe. Again this should be done with your tax attorney as tax laws, interest and penalties may complicate matters, in addition it may be possible that you actually do not owe the IRS the amount they assessed and that will be ammunition your attorney can use.
After determining the amount you owe the IRS the next step will be either to pay the amount owed, file for “not collectable status” or negotiate a settlement of some kind. There are a few programs a taxpayer may be able to use to come to a tax settlement agreement including entering an installment agreement, or filing for an offer in compromise.
Once an agreement has been set up with the IRS the taxpayer must keep current on the payments or the IRS could resume collection actions once again.
If you have not yet been levied but have received a notice of intent to levy, act immediately. You will have only a short time to hire an attorney and begin to negotiate before the IRS will impose the wage garnishment. The details of any negotiations with the IRS can be complicated so be sure to only work with an experienced tax levy attorney and they will be able to get you back on your feet and put the IRS behind you.