What Is A Wage Garnishment?An IRS wage garnishment is a continuous levy on wages, salaries and other income. In most garnishment cases, the IRS sends a levy to a delinquent taxpayer's employer with instructions to send a portion, or all income to the Service as payment for the delinquent tax.
Will The IRS Garnish All Of My Wages?In most cases, no. A certain amount of income is usually exempt from a wage garnishment. The IRS publishes annual tables to be used to compute the amount of income exempt from a levy on wages. The levied amount will differ depending on your pay frequency, filing status and number of claimed exemptions. There are additional exemptions for taxpayers that are blind or over 65-years-old.
Will The IRS Release My Wage Garnishment?Wage Garnishment is a continuing levy on salaries, wages and other income. The IRS should release a garnishment if an alternative payment resolution, such as an Installment Agreement, can be secured. The IRS may also release a wage garnishment if it is causing a financial hardship. With a hardship release, the Service will also expect a resolution to be set up at the same time as the release or soon thereafter.
What If The IRS Will Not Release My Wage Garnishment?If you've requested the release of your wage garnishment, provided proof of a financial hardship, and the IRS representative still refuses to release the levy on your wages, ask to speak with a Collection Manager. The Manager will most likely not be available immediately, and should call you back within 48 hours. Be sure to provide a phone number where you can be reached and keep that phone on you at all times until you talk to the Manager.
If the Collections Manager refuses to release your wage garnishment, contact Taxpayer Advocate via telephone or by submitting form 911.
Is The IRS Able To Garnish My Wages Whenever It Wants?In most cases, the IRS requires 3 conditions to be met before a wage garnishment is sent to your employer:
- The IRS must assess the tax to you and send you a Notice and Demand for Payment;
- You must neglect or refuse to pay the assessed tax within the given timeframe;
- Finally, the IRS sends a Final Notice of Intent to Levy to your last known address, and you fail to correctly respond within a 30-day time period.
IRS cannot garnish wages or levy, if:
- The levy or garnishment is Uneconomical;
- Your case is in Appeals;
- You have a pending Offer in Compromise;
- Your case is in Pending Installment Agreement status;
- You are currently in a Bankruptcy proceeding;
- The Collection Statute Expiration Date has expired;
- Your balance has been paid in full;
- You have a formal Installment Agreement in place;
- Your case has been placed into Hardship status or Currently Not Collectible;
- During the 30 days following the rejection of an Installment Agreement;
- During the 30 days following the termination of an Installment Agreement.