How can I release an IRS wage garnishment? Can you release an IRS wage garnishment? As a tax attorney, these are common questions I am asked and therefore, I have prepared the article and video below to provide information regarding IRS wage garnishments, and how such garnishments may be able to be released.
In my opinion, a wage garnishment from the IRS can be much worse than a bank levy from the IRS assuming there were not significant amounts of money in your account when the IRS levied. Reason number one is that typically when the IRS levies a bank account, there is only so much money in the account and thus only so much damage that can be done to an individual. Often, I see many individuals that owe taxes to the IRS, keep little to no money in a bank account to begin with and thus their overall damage to exposure from a bank levy is limited. However, when the IRS garnishes your wages, the IRS will take the majority of these wages and if you are working, the IRS is guaranteed to get some money. Reason number two is, a wage garnishment is continuous and typically an IRS bank levy is only a single levy. Thus, when the IRS garnishes your wages, a portion of each of your pay checks is forwarded to the IRS.
The above being said, how can this wage garnishment be released? First, if the garnishment pays off the period or periods that the levy was issued on, the garnishment will be released. Second, if you can pay off the tax debt(s) for the period or periods the garnishment was issued on, the wage garnishment will be released. Option number two may not be very practical, because if you had the money, you may have paid the IRS to begin with and thus there never would have been a wage garnishment. Option number three would to formalize an installment agreement or partial payment installment agreement. Generally, if you formalize an installment agreement with the IRS, they will forward a release of levy or garnishment notice to your employer. Option number four would be to verify with a financial statement and/or other financial information that the wage garnishment is creating an economic hardship. If you can prove that the garnishment is creating an economic hardship, it is likely the IRS will partially release or fully release the garnishment.
If your wages have been garnished or you owes taxes to the IRS speak with a Denver tax attorney at The McGuire Law Firm. A tax attorney can represent you before the IRS and help resolve your tax matters.