How To Prevent IRS Wage Garnishments

2019/02/25

The IRS or, the Internal revenue Service, is a bureau of the Department of the Treasury and is the Unites State Federal Government’s revenue service. The primary responsibility of the IRS is to collect taxes from citizens and to enforce and interpret the country’s Internal Revenue Code.How To Prevent IRS Wage Garnishments

While the purpose of establishing the IRS is primarily to ensure that the country’s revenue is recovered, there have been instances wherein people have alleged extremes by the IRS. However, it needs to be borne in mind that, in general, the IRS does allow for flexibilities in circumstances where people are in a situation where they absolutely cannot clear their back taxes.

There are several conditions under which the IRS has been empowered to act against a tax defaulter, and these can range from liens to levies to garnishments. There are different articles for different types of tax defaults. Of all of these, one of the worst collection mechanism is the IRS wage garnishment. In most cases, the taxpayer is already distraught due to the failing economy and might be struggling to make ends meet. In the midst of this, an IRS wage garnishment can be devastating.

The primary reason why it really hits a person hard is due to the fact that the tax bills from the IRS get attached to the pay checks of the taxpayer automatically. Therefore, when payday arrives, a person will be shocked to see that there has been a big cut in their wages towards the dues to the IRS. There will then be a notice for the deduction that is sent to the person for each deduction, and the deduction will continue until the IRS has recovered all back taxes, and is completely satisfied that there are no dues. This causes many desperate taxpayers struggling to find out how to handle and stop wage garnishment.

Before The Wage Garnishment Is Enforced

Usually the IRS gives three warnings to a person before slapping a wage garnishment for recovery of taxes. Therefore, if you have already got those warnings, these intermediate stages can be perfect opportunities for you to take the needed steps and to prevent a wage garnishment. The first notice is one with a demand for pending taxes to be cleared.

Along with this notice, you would have also received a warning that failure to clear back taxes could result in a wage garnishment. Second, you would be given a particular time period within which to pay your pending taxes. The final notice is called a “Notice of Intent to Levy”. This notice gives a person 30 days in which to resolve tax debt by means of a collection-due process hearing. This is one chance to prevent wage garnishment temporarily.

Many people wait until after the final notice is received and until the actual wage garnishment is imposed, before approaching a tax attorney for help. Keep in mind that the IRS has the power to take whatever property you possess in order to clear pending taxes. This includes but is not limited to artwork, houses, automobiles, jewellery, savings and pay checks.

A wage garnishment is one of the most common ways in which they do recover taxes. When you find yourself the victim of a wage garnishment by the IRS, you need to take immediate steps in order to deal with the problem. While it is, understandably, quite disturbing, you need to act at once in order to deal with it.

After The Wage Garnishment Is Enforced

If you find yourself in a situation where you have a wage garnishment against you by the IRS, it is best to approach a good tax attorney to help you through the process. There are a number of tax attorney firms that you can approach. These firms work with professionals who have had experience dealing with the IRS.

Therefore, you can rest assured that you will receive all the help you need to stop the wage garnishment, or even remove it all together. They will need to find loopholes within the garnishment so that they can handle the case and get you out of financial turmoil. You can, of course, approach the IRS directly to get things sorted out. However, this is not the ideal course of action, since, anything you say or do could be used against you.

Your tax attorney will be able to suggest different courses of action to you, based upon your case. Be sure to inform your tax attorney of all details pertaining to your financial status. It will not do to hide anything from the attorney, since, if you are found to be untruthful, even a tax attorney will not be able to help you.

After going through your financial status as well as assets, your tax attorney could suggest a flat-fee tax which puts an immediate end to wage garnishments by the IRS. It takes just two business days for the garnishment to stop. There are some conditions that you need to meet in order to be eligible for the flat-fee tax. This, however, will be negotiated between the IRS and your tax attorney.

Another option that your tax attorney could consider is an Offer in Compromise. This is a settlement between you and the IRS that will allow you to settle your taxes at a percentage of the original amount, if they are convinced that there is absolutely no way in which you can pay them the entire outstanding tax amount. Your tax attorney can also negotiate with the IRS and buy time for clearance of outstanding taxes if you have a valid reason for the default of taxes.

In extreme cases, you might feel that filing for bankruptcy will get you out of trouble with the IRS. This, however, does not work. Even if you file for bankruptcy and get a temporary stalling of the wage garnishment, the IRS will follow up on your case and will be sure to try to recover the pending taxes at a future date when your finances are in order. Therefore, the best solution is to close the issue with the help of a good tax attorney, preferably before the wage garnishment is actually put into force.

Photo Credit: Egaccountingandtaxes.com

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