The IRS has been known to take aggressive action against anyone who owes the government money in overdue taxes. IRS wage garnishments, also known as an IRS wage levy, are one tactic that the agency employs to collect the money citizens owe the government. If you find yourself drowning in the debt you owe the government, you have a few options. Many citizens make offer in compromise, which means they offer the IRS less money than they owe.

Unfortunately, this government agency has the right to seize any of the real or personal property you own after you have received Letter 1058 – Final Notice of Intent to Levy, and you have not requested a collection due process hearing within 30 days of receiving said letter. The personal property the IRS can seize includes money in checking or savings accounts, or even that which you receive from your employer each week.

If the IRS opts to collect money from your regular paycheck, they must notify you via mail, and an Order of Withhold Notice will be sent to your employer. The money the IRS may garnish is not limited to a regular paycheck, either because the agency is allowed to collect money from any of your bonuses, commission or fees. If you employer has received this notice, then he or she is bound by law to withhold a specified percentage of your paycheck until the debt has been paid. Do not expect much help from your employer in this matter; if he or she refuses to withhold the money from your paycheck, the IRS will hold him/her personally liable for any money they should have received from you. The levy will continue to take effect on every paycheck you receive until taxes are no longer owed. The IRS must release the levy; no other agency has the power to do so.

The agency will not take all of your paycheck, but will allow you an amount it deems enough for you to live on, an amount which is based on the standard deduction, personal exemption amount based on individual filing status and any dependents you may have. Court-ordered payments, such as those for child support, are exempt but must be ordered before the date of the levy in order to be exempt.

To protect yourself against this kind of wage garnishment, you may make an offer in compromise to the IRS. If this is not an option, you may still be able to pay your taxes in installments over an allotted period. If you have successfully filed for bankruptcy, you are automatically protected from garnishments. Lastly, you may be protected if the taxes you owe have been barred by the statute of limitation. If your taxes are long overdue, it may be best to seek legal counsel before determining the best road to take in the fight against garnishments. All of the above options are merely possibilities and not everyone will qualify for every option. This government agency can be an intimidating entity to deal with, and tax law can be quite complicated, but you will want to have a clear understanding of your rights and options before this becomes a problem for you.

Author Bio: Stewart Wrighter recently searched the term Offer in compromise to find an advocate to help with an IRS tax lien. He searched the term IRS wage garnishments to find a legal expert for advice.

Category: Finances
Keywords: offer in compromise,IRS wage garnishments