Managing Wage Garnishment And Other Tax Relief Methods
Paying your taxes is an important part of being a U.S
. citizen. If you can't pay them, are unwilling to pay them, or for some reason cannot set up a payment plan you should be aware that the government is still going to try to collect taxes.
The United States IRS has some very aggressive tools to use to get the amount they are owed paid in full. If you fail to pay your taxes, don't be surprised if you are contacted about it.
The goal of the IRS isn't to torment you, they are just trying to get you to pay your taxes in full. Without taxes the government would not be able to fully operate.
The IRS works hard to ensure that they get all the tax money they are owed. In order to do this they use tools such as property levies, bank account levies, and wage garnishment.
These methods, either one or all, can be used to quickly get tax money that has already been delayed. A wage levy is one of the harshest collection mechanisms used by the IRS to collect delayed taxes.
When using this method, the IRS takes a percentage cut of your paycheck each month. They will do this until they receive the full amount that you owe.
Generally, you can expect the IRS to take an amount between 30 and 70 percent of each of your paychecks. The amount they take varies on each individual case.
The IRS will continue to take the chosen percentage out of every paycheck you receive until the tax debt is paid off and the employer is responsible for making the payment, which means you can't try to hide your paycheck.
The wage levy will likely remain in place until the IRS has collected enough money to either pay off your full tax amount, until you have reached an alternate form of arrangement, or some other factor comes into play and they stop the garnishment. There are four basic ways that 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.
Once taxes are paid in full the IRS will immediately halt collection actions and remove the levy. This is because the only reason the levy was imposed was to collect this money.
Although this would be a nice solution, for many people it is not a reality. Many do not have the money available to pay right away. If they did, they would have already paid their taxes in full and would not have this added stress.
If you don't have the money you can consider borrowing from friends, selling some assets on eBay, taking out a loan, paying on credit card, or even refinancing your home. If these options are not viable then there are other options that you should be aware of.
The second method is entering into an installment agreement. This agreement allows you to pay the taxes you owe over a period of time in monthly increments. Each month you will know how much you need to pay and that you need to pay it by a certain date, just like a bill.
Once you have your installment agreement accepted you will remain in good standing 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 and you will just need to make your payments on time.
Third, you have the option of filing for an offer in compromise. An offer in compromise allows a taxpayer to settle their taxes owed for far less than the total amount.
The only way to qualify is if you meet a strict set of requirements and go through a tax filing. If you are considering this method, you should consider hiring a tax professional. They can easily analyze your situation to see if you are a likely candidate and then let them handle the filing on your behalf.
Fourth, prove financial hardship. This method will not solve your tax problem but will just postpone it. Proving financial hardship will postpone money collection until a later date. By proving financial hardship, you will temporarily halt collection actions.
As soon as possible, the IRS will reassess your situation. When your situation has been reassessed, if your financial situation has improved enough to begin collection actions then you will be required to pay in full or at least continue paying at that time.
No matter what your situation, it is highly suggested that you hire a tax professional. They can help to professionally analyze your tax situation and help provide tax relief.
They can provide tax relief by advising you on the best tax method for your situation. A tax professional can prepare and handle all tax negotiations on your behalf.
A tax professional's skills, expertise, and professionalism will help guide you through the process of paying your taxes.
by: Jack Landry
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