Call Today: 877-825-1179

La Porte Chamber of Commerce
VERIFIED Seal Success Tax Relief, LLC BBB Business Review    

wage garnishment

What Are the IRS or State Tax Levies?

What Are the IRS or State Tax Levies?

By on Jul 11, 2019 in wage garnishment | 0 comments

Tax debts are among the most difficult debts to eliminate, not even avoidable by filing bankruptcy. This is because the IRS has more power than other types of creditors to seize your assets. In this way, the IRS can use a tax levy to seize property without even having to take you to court for a winning judgment which is not the case with a bank or credit card company. The good news is that it’s possible to prevent a levy from happening or one that’s in progress. Let Success Tax Relief explain this system to you. What is a Tax Levy? Tax liens and tax levies are ways the Internal Revenue Service’s tax debt collection enforcement happens. It is the common method the IRS uses to get money owed by a taxpayer who doesn’t pay the levy on time. Tax levies can be collected in several different ways. Here are some of the most common: Bank levies: The IRS can require your bank to prevent withdrawals from your account for 21 days and then withdraw funds from your bank accounts. The bank must then forward the money you owe to the IRS.Wage garnishment: Your employer will be forced to hold back a portion of your pay to send to the IRS until your debt is paid.Property seizure: The IRS can take the property you own (such as a house or automobile), sell it, and apply the sales proceeds to your tax debt.Reduced tax refunds: The IRS may hold money that would otherwise come to you via a refund by completely redirecting refunds from the state to the IRS instead of to you.Miscellaneous: Surprising ways such as tax liability, social security, or federal taxes are another way the IRS will make sure your tax bill is paid. When Will the IRS Levy Your Assets? The IRS will start to levy your assets after a final notice of intent to do so when they have made attempts to offer a payment plan, booking services, or offer in compromise. In particular, the IRS will only begin to collect taxes owed if the following things have already happened. The IRS sent you a notice demanding payment.You ignored the notice or failed to...

Read More
IRS Wage Garnishment Laws: Know Your Rights

IRS Wage Garnishment Laws: Know Your Rights

By on Jan 8, 2018 in employers, IRS, wage garnishment | 0 comments

If you find yourself owing money to the Internal Revenue Service (IRS) then you may be familiar with wage garnishment. As a way to satisfy taxpayer’s debt, the IRS seizes employment wages earned. Employers are usually contacted when employees are being penalized with wage garnishment. This is a very serious consequence, especially if you’re not making a lot of money to begin with. It’s important to know how to take preventive measures to make certain that your wages are protected.   Wage Garnishment and What to Expect Wage garnishment is usually one of the last resorts the IRS takes after many attempts of sending out notices that are unanswered by the debtor. The employer is informed and is obligated by law to send a portion of the employee’s paycheck to the IRS. According to the IRS website, the debtor may either pay the amount owed, arrange a payment plan, or in some cases may have a levy released.   Procedures and Rules for Employers Before wage garnishment is enforced, the IRS sends out a Notice and Demand for Payment to the employee where the employee is given a period to reply back. If there is no response, a second attempt is followed with a Final Notice of Intent to Levy and Notice of Your Right to a Hearing. The employee must respond within 30 days before wage garnishing ensues. If there is no follow-up after these attempts, the employer must get involved. A form called the Form 668-W, the Notice of Levy on Wages, Salary and other Income, states that the employer is given one full pay period after receiving the letter before they’re required to deduct an employee’s salary. The first and most important action employers must take after receiving this notice is to advise the employee to contact the IRS immediately to discuss a repayment plan.   Fight Against Wage Garnishment There are a few ways to fight against wage garnishment. Request for a Collection Due Process Hearing (CDP) with the Office of Appeals. At the hearing, the officer reviews the case and the employee is given multiple options to determine how levy may be reduced or even lifted. If employee disagrees with officer’s decision, they may...

Read More