Subscribe RSS Feedby Warren Buflet
Wage garnishment is the Internal Revenue Service’s ultimate weapon and one that every taxpayer needs to avoid. It is absolutely crucial that anyone having a dispute with the IRS understands exactly what wage garnishment is and how seriously it can affect everyday life. And, perhaps most importantly, everyone needs to know how to avoid the garnishment of wages entirely.
Wage garnishment is the term used for the IRS’s power to take a portion of your wages until your tax debt is totally paid off. This can only happen after the IRS has assessed the tax and sent several notices to you, including a Demand for Payment and a Final Notice. The government can then contact your boss and have money taken directly out of your paycheck each and every pay period.
The Consumer Credit Protection Act (CCPA) says that a creditor can’t take more than 25% of your wages, but makes a huge exception for federal and state taxes. So how much can they take? The IRS can take everything you make after they allow you a small exemption. If you are married and take two exemptions you would be allowed to keep only $359.62 each week, and a single person taking one exemption would only be allowed $179.81. Needless to say, it would be almost impossible to pay your rent or mortgage, car payments, credit cards payments, utitilities, and food with that amount of money.
Fortunately the garnishment of wages can be avoided if you act immediately. It is crucial that you act as soon as you get the Notice and Demand for Payment. Contact the Internal Revenue Service right away and schedule an appointment to discuss a settlement. If you can negotiate skillfully enough you will be able to agree on a payment plan that will leave you enough money to pay your bills while you pay down your IRS debt.
Don’t try to deal with the IRS by yourself. The IRS will have tax professionals handling your case and so should you. Contact our tax experts right away and we can help you stop wage garnishment.
Do you owe the IRS? Receive Tax Settlement Help Today!
Tags: Garnish Wages, Garnishment of Wages, IRS Debt, IRS Wage Garnishment, Stop Wage Garnishment, Wage Garnishment Laws