Three Facts You Need to Know About IRS Wage Garnishment

Wage garnishment is the Internal Revenue Service’s last resort for collecting back taxes from taxpayers who have not responded to other means of collection. Here are some facts you need to know if you receive a Notice of Intent to Garnish Wages from the IRS.

1. The IRS is Not in the Business of Surprise Attacks. You will not walk into work one day and find your paycheck reduced by 75% without having a fair warning from the IRS. You can expect to receive approximately five letters notifying you that your taxes are due and giving you the chance to work it out with the IRS. These are not letters you should ignore.

2. Consumer Protections Relating to Wage Garnishment Do Not Apply to Tax Garnishments. That means that the IRS does not have to adhere to any limits on the percent of your wages that they garnish. Typically, an IRS garnishment takes over three-quarters of your normal pay, making it nearly impossible to survive if you have an IRS wage garnishment to deal with.

3. The IRS Will Work With You. Despite the reputation of the IRS, they will work with a taxpayer to satisfy their debt obligation without resorting to a wage garnishment. If you are able to cut through the red tape the IRS will most likely be willing to enter into an installment plan or accept an offer in compromise to settle your tax obligation.

An experienced IRS tax attorney can help you through the bureaucracy of the IRS and get you the help you need with your potential wage garnishment.