Wage Garnishment

What is Wage Garnishment?

A wage garnishment is one of the most common and financially drowning tax levies. If the IRS places a wage garnishment, your employer must collect a percentage of your paycheck and send it to the IRS collections on your behalf. Wage garnishment can leave a person with little money to meet ends and if you are already living paycheck to paycheck this can create financial stress for you. Thankfully, the IRS has programs available to remove your IRS tax garnishment and possibly reduce your tax debt.

How Much Money Will The IRS Take?

The IRS can use aggressive tactics and it is not uncommon for the IRS to take more than 70% of your wages. The IRS has no limit to how much they will garnish from your wages. 

Before the IRS places a levy on your salary and garnishes your wages they check your previous filing deductions and your filing status (e.g. Married filing separately) to get an estimate of how much you can live off after your wages have been garnished. Once that amount is calculated they will take the remaining of your paycheck and apply it to your tax debt. 

Can You Stop an IRS Wage Garnishment or levy?

Keep in mind, that it is easier to prevent an IRS wage garnishment than it is to stop one once active. If you have been receiving notices from the IRS about a wage garnishment it is important that you are proactive and contact the IRS and set up a payment arrangement. 

If it’s too late and the IRS has already placed a levy on your wage, you will need an IRS Wage Garnishment Release to stop it. 

Three Main release options are listed below:

1. Complete an Offer In Compromise
2. Pay your back taxes in full
3. Set up an IRS Installment Agreement

Hands down an Offer in Compromise is the most requested and popular option because of the ability to settle your tax debt for an amount significantly lower than the original balance. This program is great and works wonders if you get accepted. In order to get accepted for an Offer in Compromise, you must prove to the IRS that you are in an economic hardship via job loss, medical bills, or some other catastrophic expense. 

How Can Fresh Tax Help Remove a Wage Garnishment?

Fresh Tax Solutions has the expertise and knowledge to handle tax audits and remove wage garnishments. We have the blueprints that must be taken to apply for an IRS tax garnishment removal correctly.