subject: Methods Of Ending Wage Garnishment [print this page] Taxes are a crucial part of our governmental system. Due to this fact, enforcing tax payment is important to the government and the IRS.
If your taxes are not paid by the specified date, whether you were unwilling or unable to pay them, some aggressive methods may be used to collect the money you owe to the government.
These methods are not personal attacks they are just business. For example, if you were working for someone and they did not pay you when they said they would most likely you would take drastic measures to get the money you feel should be yours. This is the same as with the government.
It is important to understand that the goal of the IRS is not to make you suffer. Instead, the IRS is trying to enforce the U.S. tax system and get you back to contributing to the system.
The tools they use include property levies, bank account levies, and wage garnishment. One or possibly all of these methods can be used to collect unpaid tax money.
Wage garnishment, also known as a wage levy, is one of the most severe collection mechanisms used by the IRS. In this method, the IRS takes a cut of your paycheck each month, until they receive the full amount owed to them.
Generally, you can expect the IRS to come up with a figure between 30 and 70 percent of each of your paychecks.
This means that 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 the specified amount out of every paycheck. They will stop garnishing your payments as soon as the full debt is paid off.
Your employer is responsible for making the payment to the government from your wages. This means that they will get a cut of each and every pay check.
The wage garnishment will continue until the IRS has collected enough money to either pay off your entire tax liability or you have reached another form of arrangement with them.
Under the Consumer Credit Protection Act, only particular types of income can be garnished by the government legally. When it comes to general wages, salary, bonuses, commission, or other personal income they can be garnished by the government. Income such as tips and bonuses are not considered income that can be taken for wage garnishment purposes.
There are five basic things that you should consider to help you deal with wage garnishment.
First, is to pay the amount that is owed on your taxes. This is the simplest and fastest way to stop wage garnishment. Once taxes are paid in full the IRS will immediately halt collection actions and remove the levy.
The second method is to get help from a wage garnishment professional. They will help you learn about your other options while giving you expert advice.
Third, is making installment agreement with the government. When you make this contract with the government you are promising to pay a specified amount to the government every month.
Once you have you installment agreement accepted you will be considered to be in good standing with the IRS as long as you continue paying them each month.
Fourth, 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.
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.
Fifth, prove financial hardship. This method will not solve your tax problem or make it fully go away.
Proving financial hardship will only postpone money collection until a later date. By proving financial hardship, you will temporarily halt collection actions.
The IRS will then look at your financial situation again after a certain amount of time. If your financial situation has improved enough to begin collection actions when they reassess then they will require you to pay in full or at least continue paying at that time.
The best way to avoid these situations is to pay your taxes on time and in full. If this is not a possibility be sure to take a look at all of your options before making the final decision.
by: Terry Daniels
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