When you owe back taxes, you may be tempted to put off the situation and think that you can deal with later. This can especially be true if you are going through times that are financially difficult. Unfortunately, the IRS is not known for their patience. They are aggressive collectors with powerful resources to use against you. Among them are property levies, bank account levies and IRS wage garnishment.
An IRS wage garnishment is one of the most frightening collection strategies that you can face. If you are an employee who has tax liens, chances are you will be faced with a wage garnishment. When you owe the government money, they have the right to take any property that you have to meet that obligation. This includes taking a large portion of your income each month until your obligations are met. The IRS wage garnishment formula will determine how much of your money they will take each month.
The IRS will contact your employer directly and inform them that they are now legally obligated to send them a portion of your income each month. Essentially, the IRS will be getting paid before you do.
You will be given a warning that a wage garnishment is coming. The first notice will tell you of their intent and give you somewhere between 10 and 30 days in which to satisfy your obligation. If at all possible, make payment arrangements as soon as you receive this notice. Many people negotiate directly with the IRS, but this can be a mistake because you may inadvertently say something that makes your situation worse. It can be a good idea to hire an attorney.
Unless arrangements are made, when the initial time period is over, you will be given another notice. This will be a “final” notice and let you know that a wage garnishment will be filed. From this notice, you will have 30 days until the garnishment is filed.
