IRS Levy: Wage Garnishment

Last updated on July 17, 2021

Taxpayers who ignore or avoid paying their tax debt may face aggressive collection action by the IRS such as IRS levy. Under a levy, the IRS may seize property of a taxpayer or any rights to property. It includes wages or salary of a taxpayer under tax debt.

Under wage garnishment, the IRS slices off certain funds from the wages of taxpayers to fulfil tax debt. The IRS does not consult the taxpayer concerned about the amount they will deduct from the wages of the taxpayer every month. Instead, the employer of the taxpayer is informed about the tax debt and the amount s/he will need to send to the IRS from the wages of the taxpayer to fulfil the tax debt every month.

To avoid the financial crisis that wage garnishment can bring into the lives of taxpayers, they need to resolve their tax debt by choosing a tax debt payment program such as Offer in Compromise, Installment Agreement, Currently Not Collectible, Innocent Spouse Relief and Partial Payment Installment Agreement. Once an IRS levy has been placed on the wages of a taxpayer, it is difficult to get it released.

An IRS levy can be avoided by replying to IRS notices regarding the tax debt and making efforts to resolve it. Taxpayers can take the help of tax resolution companies or tax professionals to pay their tax debt or reduce their tax debt amount.

After receiving the final notice of IRS levy, taxpayers must immediately act to resolve their tax debt to avoid wage garnishment or seizure of their property or right to property. After all, early resolution is the best resolution.