Wage Garnishment

Wage garnishments are a form of debt collection where an employer withholds a

portion of an individual's paychecks to pay a debt. This process typically occurs when a

person has failed to pay debts such as child support, student loans, taxes, or other

outstanding obligations.

The Internal Revenue Service (IRS) can garnish wages for unpaid taxes. Garnishment

usually happens when the IRS has assessed the tax, sent a Notice and Demand for

Payment, and the taxpayer has neglected or refused to pay the tax. As a last step, the

IRS sends a "Final Notice of Intent to Levy and Notice of Your Right to A Hearing" at

least 30 days before the levy. The IRS can take a significant portion of your paycheck,

making it a serious issue for those affected.

To stop wage garnishments, especially from the IRS, you can:

Pay the Debt in Full: This is the most straightforward way to stop a garnishment. Once

you pay off the debt, the garnishment will end.

Set up an Installment Agreement: If you can't pay in full, setting up a payment plan

with the IRS is a viable option. Once the IRS accepts an installment agreement, the IRS

will generally stop the garnishment.

Offer in Compromise (OIC): This agreement between you and the IRS settles your tax

liabilities for less than the total amount owed. It's an option if paying your entire tax

liability creates a financial hardship, though it can be difficult to qualify. If an OIC won't

work, a partial payment installment agreement is another option we can consider.

Hardship Claim: If the garnishment is causing significant financial hardship, you can

apply for a temporary suspension. The IRS may release the garnishment if they agree

it's preventing you from meeting basic, reasonable living expenses.

Bankruptcy: Filing for bankruptcy can halt garnishment for some types of debt.

However, bankruptcy has long-term financial consequences. Moreover, the IRS may

ultimately not discharge your income taxes despite filing for bankruptcy.

Challenge the Garnishment: If you believe the garnishment was made in error, or there

are other legal reasons it should not occur, it can be challenged.

Please consult with me when dealing with IRS wage garnishments to understand all

options and ensure the best approach is taken based on your specific situation.

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