An Introduction To Wage Garnishment
Taxes are an important part of our society and government structure
. If taxes are not paid our government cannot function properly.
Due to the need for funding, tax collection must be enforced. One of the ways delayed taxes are collected is by wage garnishment.
Wage garnishment is considered an aggressive way to collect taxes. The government will only use this procedure if you fail to pay your taxes on time.
Taxes are collected to keep our government and country running properly. The IRS uses various tools to enforce taxpaying.
Some of these methods include property levies, bank account levies, and wage garnishment. One or all of these methods are used to quickly get tax money when it has already been delayed.
Levies are put in place to collect taxes by authority or force. In property levies or bank levies the IRS goes in and takes the amount they are supposed to collect.
A wage levy, also known as wage garnishment, is one of the harshest collection mechanisms used by the IRS. In this method, the IRS takes a percentage of your paycheck each month, based on the amount that you owe.
The wage garnishment will continue until all of the taxes have been collected. The percentage of a paycheck that they can legally garnish is between 30 and 70 percent of each paycheck.
Depending on each individual situation it will vary.
If you receive a gross paycheck of $2,000 every two weeks, the IRS will take $1000 of the gross amount if the wage garnishment is for 50 percent of the check.
The IRS will continue to take this amount out of every paycheck until the tax debt is paid off. Keep in mind that the employer is responsible for making the payment to the IRS from your paycheck, which means they will get the money you owe them.
Wage garnishment will remain in place until either the IRS has collected enough money to pay off your entire tax liability, you have reached another form of arrangement with the IRS, or some other factor has come into play to force them to stop the levy.
There are four basic ways you can legally stop a wage levy.
First, is to pay the amount that is owed. Paying your taxes in full is the single most effective way to stop a tax levy or any other method of getting tax money. It is also one of the simplest.
Plan to pay your taxes on time, every year. If you do this, you will never have to worry about wage garnishment.
Once taxes are paid in full the IRS will immediately halt collection actions and remove the levy. This seems like a simple solution, but for many it is not. They do not have the money available to them to pay off their taxes.
If the money is not readily available you still have some options. Consider borrowing from friends, selling some assets on eBay, taking out a loan, paying on credit card, or possibly refinancing your home.
If none of these solutions seem feasible there may be other methods that will work better for you to pay back the taxes you owe.
The second method is entering into an installment agreement with the IRS. This contract between you and the IRS permits you to pay the amount owed over a period of time, generally in monthly increments.
Once the installment agreement is accepted, you are once again considered to be in good standing with the IRS. The good standing rank will remain with the IRS as long as you are on time and in full with your monthly payments.
If your installment agreement request is accepted your IRS wage garnishment will be stopped.
Third, you can file for an offer in compromise. An offer in compromise allows a taxpayer to settle their taxes owed for far less than the total amount.
An offer in compromise is only offered by the IRS in particular situations. The only way to qualify for an offer in compromise is if you meet a strict set of requirements and go through a tax filing.
Especially, with this method you should think about hiring a tax professional. Tax professionals will help make this process a lot simpler.
A tax professional can easily analyze your situation to see if you are a likely candidate. Then, you can let the tax professional handle the tax filing and paperwork on your behalf.
Fourth, prove that you have serious financial hardship. This method will not completely solve your tax problem. All that proving financial hardship does is put off money collection until a later date.
By proving financial hardship, you will temporarily halt all collection actions for a limited amount of time.
The IRS will then reassess your situation at a later date. If your financial situation has improved to a certain degree then they will begin collection.
When this occurs, depending on the situation they will require you to pay in full or set up a payment plan.
In any tax situation, it is highly suggested that you hire a tax professional. A tax professional will help to professionally analyze your situation and figure out what the best method would be for you to use.
A tax professional can prepare and help handle all negotiations on your behalf so you don't have as much to deal with.
When you are aware of tax garnishment and other tax relief methods you will be better able to handle the situation if the need arises.
by: Jack Landry
QUESTION HOUR IN PARLIAMENT: SO WHAT? What’s Immune System? And Natural Home Remedies Treatment Caring For Your Engagement And Wedding Rings Natural Home Remedies for Constipation and Beneficial Treatment Natural Home Remedies for Constipation and Beneficial Treatment What Are The Benefits Of Restaurant Franchise Investments You Need Wow Gold For Buying Equipment, Food and Materials Ways To Get Your Girlfriend Back Is Wrong Event Management Company Promotes Your Events in a Unique Way How To Get Over Ur Ex Girlfriend Is Impossible How To Have A Pet In A Small Apartment New York Knicks Tickets - Early Assessment Event Management Company: It's all to manage you Event Abdominal Equipment Online: Great Abs For Everyone!