Whenever a taxpayer owes back taxes to the IRS, the agency has the power to levy or seize properties, including the delinquent’s weekly wages. Unfortunately, wage garnishment can cause even more trouble for the taxpayer as it can financially cripple him even more.
The occurrence of wage garnishment is common, with a minimum of 25 and a maximum of 75 percent of the paycheck being seized by the IRS. Even if the amount taken is at a lower percentage, individuals and families can still be affected greatly. Aside from the monetary hardship it results to, employers are also notified, which can be detrimental to one’s profession and can even cost some people their job.
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It is important then to understand the IRS procedures before they are authorized to apply wage garnishment.
After assessment of tax liabilities, the IRS sends a notice and “Demand for Payment” letter to the taxpayer. If he is unable to pay the amount due, he will be issued the “Final Notice of Intent to Levy” and “Notice of your Right to a Hearing” documents. The taxpayer will then have 30 days to contact the IRS and resolve the problem.
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The implementation of wage garnishment can be appealed and suspended with the help of tax professionals. Aside from the temporary suspension of the levy of wages, workable solutions can also be created, including installment plans and settlement offers. These can help the individual get back on track to a sustainable income.
Kathy Hill founded Tax Tiger in 2002 to provide effective, aggressive, and fair relief to individuals and businesses who were debilitated by IRS tax issues. Guided by this vision and backed by a team of experts, the company has saved customers more than $120 million in back taxes and has an A+ rating with the Better Business Bureau. Find out more about Tax Tiger by visiting this website.
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