What You Should Know About Wage Garnishments
When you have a tax liability to the IRS, they can seek to resolve it in a number of ways. As with any IRS action, you will be notified of their intentions beforehand and be given a window in which to take preventative actions, but financial circumstances vary from person to person, so the actual collections process may vary similarly. One collection action the IRS may take to resolve your liability is that of garnishing your wages. This entails a portion of your paycheck being withheld by your employer at a creditor’s order, and paid towards your outstanding liability, until it is fully paid off.
You can be subjected to wage garnishment for reasons beyond tax liability. Consumer and student loan liabilities make for equally viable circumstances, as does child support. In some cases, wage garnishment can be mandated by a court order, but it often is not. Whatever the case may be, it is almost always required that you receive legal notification about any intent to garnish your wages, which gives you the opportunity to dispute it if you believe you do not owe the corresponding liability. Furthermore, there is a cap on how much of your pay can be garnished in a given timeframe, and it varies by circumstance. And while you cannot be fired on account of a singular garnishment status, that protection does not extend to those being garnished for multiple liabilities.
As with other collection actions, wage garnishment does not stop until the corresponding liability is fully paid, along with any extra costs such as penalties and interest. If a tax-related wage garnishment is causing you trouble, or you believe that you cannot pay your liability in full, a professional tax service can help you decide the best move to make next.
About Larson Tax Relief
Larson Tax Relief is a family-owned and operated tax resolution company that’s been helping individuals and businesses around the US since 2004. With an A+ rating from the Better Business Bureau, Larson is comprised of 65 employees, including 17 federally licensed IRS Enrolled Agents.
One of those agents is Larson co-founder and company president Jack Larson, who is a member of both the National Association of Enrolled Agents and the National Association of Tax Professionals.
To learn more, or to get a free evaluation of your situation call us today at 888-589-0955 or fill out our online form below.