How To Stop An IRS Wage Garnishment

An IRS wage garnishment occurs when the IRS withholds a portion of your wages directly to pay your unpaid taxes, and the only way to prevent it is to take some official action to resolve your tax debt. This can be stressful, particularly when you have a part of your earnings removed very quickly without lots of warning. The great thing is that there are a number of avenues you can go by to seek IRS wage garnishment relief from the IRS, contingent upon your situation. This information is presented in an easy-to-understand way, without legal jargon, and covers the reasons why garnishment occurs, how it might be avoided, and the typical procedure that follows.

What Can You Do to Stop an IRS Wage Garnishment Once It Has Started?

The best way to stop an IRS wage garnishment is to pay the tax debt in a way that is approved by the IRS, after which the wage garnishments will cease. Depending on the situation and eligibility a plan to pay, to show financial hardship or full payment of balance due can be set up. When a garnishment is issued, it is often a critical matter of time because the process will proceed for a longer period than it should if not acted upon quickly.

How to stop an IRS Wage Garnishment

• Talk to the IRS right away about the debt
• Make an approved payment arrangement
• Provide documentation for hardship consideration
• Consult with a tax professional for advice
• Answer any IRS letters promptly

Why is the IRS Garnishing your wages and what can you do about the tax debt?

After a period of failure to address unpaid tax debt for a long time, usually after a series of notices from the IRS, wages are typically garnished. Typically, the best approach to the underlying debt is a response to IRS communication, an examination of resolution alternatives, and understanding if the IRS has formally issued an income tax or IRS tax levy.

Reasons for IRS Wage Garnishment

• Federal tax unpaid balances
• The IRS sends you notices, but you don’t pay them .You ignore the IRS notices over time.
• The time in which a payment was missed. 
• Audits or tax disputes that have not been resolved.
• Not paying a debt after the letters of collection are sent out.

Does IRS Payment Plan stop a wage garnishment?

Yes, an IRS installment agreement may often be one way to prevent wage garnishment because it means the IRS knows that they are making an effort to pay off the debt over time instead of ignoring it altogether.

Payment Plans and Wage Garnishment

If the IRS approves a wage garnishment on an approved installment agreement, they can issue an active wage garnishment that’s tied to this debt. Consistency is key in this process, as it is likely to ask you to keep up with the new payment schedule so it doesn’t begin again in the future.

If an IRS Wage Garnishment Stands In the Way of Your Basic Living Expenses, Can You Qualify for Hardship Relief?

Genuine financial hardship due to a wage garnishment can be a factor for taxpayers to be eligible for some tax debt relief, depending on their financial circumstances and specific documentation submitted.

Financial Hardship and IRS Relief.

If a taxpayer can establish that garnishment is preventing them from paying basic living expenses such as housing or food, then the IRS may temporarily stop the collection process. Normally, you will need to provide the IRS with detailed financial information and it will take careful review and evaluation before deciding whether to grant the approval or not; there is no guarantee of approval and it is not automatic.

Obtaining Professional Assistance in a tough spot

This may seem like a lot to handle on top of all of the other questions you have to deal with each tax season, such as when does the IRS open for tax returns or what is included in an IRS tax refund and what isn’t. This can be overwhelming, especially when you have to deal with all of the other questions you have to answer throughout the tax season such as an IRS tax refund and everything you need to know or when does the IRS open for tax returns. Since each situation is unique, it’s important to consult a knowledgeable tax professional to help determine what options might be available to you in your situation and your financial goals. H&M Tax Group can help individuals and business owners in the area with the challenges listed above by providing professional income tax filing, bookkeeping, and QuickBooks services so they don’t end up handling complex tax matters on their own, but are organized and informed throughout the process of resolution, tax season, and beyond.

Conclusion

While an IRS wage garnishment may appear frightening, knowing what to do is the first step to a resolution. Depending on your financial circumstances, there are a number of avenues you can take to help deal with the root of your debt, from payment plans to hardship relief. H&M Tax Group provides bookkeeping, QuickBooks and income tax filing services to local clients to keep them organized and informed during the tax season and beyond. This is information, it is not a promise, and so always it is best to consult a professional tax counselor about your specific situation before deciding.