You have received notice that the IRS is going to apply a wage
garnishment to your paycheck. What exactly does that mean? Well, it
means that the IRS can notify your employer that you have a back tax
debt. And your employer is then required by law to send a significant
portion of each of your paychecks directly to the IRS to offset the
debt.
The dollar amount sent to the IRS for your wage garnishment depends on
your filing status, the number of exemptions you claim and how often you
get paid. For instance, in 2008, if you are single, claim one exemption
and get paid biweekly, the IRS can take all but $344.23 out of each
paycheck. If you are married and filing a joint return, claim three
exemptions and get paid weekly, the IRS can leave you with just $411.54
from each paycheck. This can and usually will lead to a financial
nightmare.
At Tax & Business Solutions, we never advise any taxpayer to take on the
IRS on your own. If you do nothing, the IRS will continue to garnish
your paycheck until your debt is paid in full.
What Tax & Business Solutions will do for you is work with the IRS to negotiate the
full or partial release of the wage garnishment if you qualify for
relief. Depending upon your individual circumstances, we may be able to
arrange an Installment Agreement to pay the IRS a specified dollar
amount every month until the debt is paid. Once the Installment
Agreement is in place, we may be able to negotiate an Offer in
Compromise and settle your debt for less than the actual liability,
depending on your individual financial circumstances. Another option is
to be placed in a Currently Not Collectible status, in which you may not
have to make payments to the IRS at all, again depending on your
individual financial circumstances.
In fiscal year 2007 (Oct. 1, 2006 through Sept. 20, 2007), the IRS
issued nearly 3.8 million wage garnishments and levies combined against
taxpayers. That number increased 17 times since fiscal year 2000 when
just over 250,000 were issued, according to the Fiscal Year 2007 IRS
Enforcement and Service Statistics.
If you receive notice of a wage garnishment, contact us immediately.
When you hire Tax & Business Solutions, you can be comforted in knowing that our Tax
Team has years of experience in dealing with the IRS. With our Tax Team
on your side, you can face the IRS with confidence. Don’t become another
IRS statistic.
