The purpose of the IRS is to collect taxes on behalf of the federal government. If a taxpayer does not pay their taxes the IRS will demand payment through phone calls, field visits and letters. If the taxpayer disregards the demands for payment, the IRS will give legal notice that it will be resorting to other means to collect the taxes. The IRS does not have to provide any further notice before beginning collection activity for IRS debt. Wage garnishments are one method that the IRS uses to collect the overdue taxes.
An IRS wage garnishment or IRS wage levy is a written notice sent by the IRS to the taxpayer’s employer requiring the taxpayer’s employer to withhold a significant percentage of the employee’s pay and forward it directly to the IRS. Employers are obligated to follow the instructions of the IRS. If employers disregard IRS wage garnishments serious penalties can be imposed. If a taxpayer is self-employed, the IRS can send a IRS wage levy to the taxpayer’s accounts receivable. Those businesses and individuals are required to send the taxpayer’s funds to the IRS debt wage garnishment department. The IRS commonly uses this means of enforced collection activity to collect back taxes.
IRS wage garnishments can have a devastating impact on a taxpayer’s financial situation. Many taxpayers struggle due to the garnishment of wages by IRS. An IRS wage levy can remain in place until the tax liability is paid or until it is resolved through some other means such as an Installment Agreement, an Offer in Compromise or a Currently Not Collectible status. Taxpayers can stop wage garnishments from the IRS by not waiting for the IRS to start collection efforts and by resolving their account beforehand.
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