The first thing that happens with Wage Garnishment is The IRS has to give you the appropriate notices and your right to a hearing, unless you don’t respond to them by the deadline.
If you don’t respond by the deadline, then the IRS will send a notice of levy of your wages to your employer.
This information below is in regards to an employee who receives a W-2 and not to somebody who’s self employed (that gets a 1099).
So, assuming you’re a W-2 employee, the IRS would send notice to your employer. This notice says that they are under an obligation to not pay you the check.
How much money can my employer take?
The IRS will provide instructions to your employer. There’s a chart that tells the employer how much they can still give you. For a single employee the amount is usually around $400 or a little bit more per month. That’s a very low amount set that way for a purpose.
This is designed to get you to contact the IRS right away and make arrangements to pay.
Your employer will obey this levy from the IRS because if they don’t they will be liable for the money instead. Your employer will withhold the wages from you except what’s allowed by law.
What you can do yourself and what the Tax Professionals at TaxNetworkUSA do is contact the IRS and prove hardship and fill out a collection information statement that demonstrates why you need all of your paycheck or most of it.
This can usually be negotiated pretty quickly with the IRS, but is only a temporary solution.
The taxpayer still has to make a long term resolution of their taxes.
If you would like assistance from the Qualified Tax Professionals at TaxNetworkUSA call us today!