wage garnishment

Stopping An IRS Wage Garnishment- A Guide

Do you want to know about “how to stop IRS wage garnishment” here is what you should know.

You may not have paid taxes in years, you may have just forgotten one year because you were too busy, or you may have chosen not to pay taxes for emotional or monetary reasons. Whatever the cause, the Internal Revenue Service (IRS) is now threatening to garnish your wages. With a wage garnishment, an employer must deduct money from a worker’s paycheck so that they can use it to settle a debt. Wage garnishment may also be ordered by courts and federal organisations in addition to the IRS. Salaries, wages, bonuses, commissions, and earnings from pensions or retirement plans can all be garnished.

The Process of Wage Garnishment

  • An initial Notice and Demand for Payment will be sent by the IRS.
  • The IRS will send a Final Notice at least 30 days before the wage garnishment if the taxpayer refuses to pay the tax or disregards the notice.
  • The IRS has three options for serving the Final Notice personally, at the taxpayer’s residence or normal place of business, or by certified or registered mail to the taxpayer’s last-known address. The notification need not be received by the taxpayer for it to be effective; the IRS is only required to send the notice to the last address it has on file for the recipient. Many taxpayers have their wages garnished without being notified since the IRS may not have their current addresses for some people (such as those who have not paid their taxes in a while). The intent to garnish pay and the recipient’s right to a hearing will be disclosed in the notice.
  • If an employee’s disposable income exceeds 30 times the federal minimum wage, federal law limits wage garnishments to 25% of that employee’s disposable income. However, other states have a maximum level of garnishment that is lower than 25%.

Why Employers Need To Understand Wage Garnishment

  • The employer of the taxpayer is notified to withhold a specific sum from the taxpayer’s salary and pay it straight to the IRS.
  • The garnishment of wages cannot be refused by the employer. The employer might be held personally accountable for any money the IRS didn’t obtain if they refused to garnish an employee’s wages.
  • Garnishments are deducted from the payroll. Garnishments are removed in a specific order: federal taxes are taken out first, followed by local taxes, and then other garnishments, such as those from credit cards.
  • Until the entire tax bill is paid off or another agreement is established to pay off the tax burden, an IRS wage garnishment will continue.

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