So your employer received a notice from the IRS to garnish your wages. That being said, what is an IRS wage garnishment? The article and video below have been prepared by a tax attorney at The McGuire Law Firm to provide additional information regarding an IRS wage garnishment.
If you owe individual income taxes, or are responsible for the trust fund recovery penalty from a business, you as an individual owe taxes to the IRS and the IRS can collect from your personal assets. Generally speaking a levy is a taking of property, and a wage garnishment is a form of levy, basically a levying of your wages. So how were your wages levied? Initially, you accrued a tax debt, would have received notices from the IRS and you have yet to establish a formal agreement with the IRS. After the IRS provided you with due process (a series of notices and appeal rights) the IRS can levy bank accounts and wages. The IRS will issue the wage garnishment to your employer and your employer is required by law to withhold monies that are not exempt from the wage garnishment and pay them over to the IRS until your employer receives a release of wage garnishment from the IRS. Further, it is important to note that your employer is subject to liability of they do not properly abide by the wage garnishment that the IRS has issued.
How much if my income will be garnished? The IRS provides a chart whereby a specific amount of wages are exempt from the wage levy. The exempt amount is determined by your number of dependents. After the exemption amount, all other income (wages) are to be paid to the IRS.
Will the IRS release my wage garnishment?
Yes, the IRS will release your wage garnishment under certain circumstances. If a formal agreement is established, the IRS will release the wage garnishment. If the wage garnishment is creating an economic hardship, the IRS will release the wage garnishment. Of course, if the liability is satisfied, the IRS will release the wage garnishment.
How long does the IRS wage garnishment last?
The bad news in regards to a wage garnishment is that unlike a bank levy, which is generally a one-time levy, a wage garnishment is typically continuous meaning that your wages will continue to be subject to the garnishment. A wage garnishment is not a one-time levy- your wages are levied each and every pay period until the garnishment is released!
If your wages have been garnished by the Internal Revenue Service, you need to deal with and resolve your tax debt. You can speak with a tax attorney at The McGuire Law Firm regarding your tax matters and a tax attorney can outline a resolution plan and your resolution options based upon your circumstances. Do not wait until your wages are garnished or your bank account is levied!