Tips to Deal With IRS Wage Garnishment

IRS Wage Garnishment

The Internal Revenue Service (IRS) has the legal right to garnish your wages if you have unpaid taxes. The government agency can deduct funds from your paycheck every month until your debt is settled. Unfortunately, depending on the amount you owe, it may seize as much as 70% of your income. The biggest challenge of wage garnishment is that you will most likely face difficulties paying your other debts, such as education or home loan EMIs. More importantly, the fines and interest that will have accumulated by the time the IRS begins deducting money from your paychecks will also be very high. The only way to take control of your financial affairs is to either avoid wage garnishment in the first place or end it as soon as it begins. If you owe taxes to the IRS, it’s important to consult an experienced wage garnishment lawyer. In this blog, we will share some tips to deal with wage garnishment in Texas and other states.

Reasons for Wage Garnishment

Like most IRS problems, wage garnishment doesn’t occur all of a sudden. There are certain criteria that the IRS considers before it starts garnishing your wages. The best way to avoid such instances in the first place is to stay current with your taxes and address any issues that arise as soon as possible. Get in touch with a wage garnishment lawyer if you can relate to the following things:

  • You have an overdue tax bill; including both unfiled taxes and filed but unpaid taxes.
  • The IRS has sent three specific communications to your address:
    • A notice and demand for payment
    • A notice of intent to levy (garnish your wages)
    • A notice of your right to due process for collection actions

The gap between receiving the first notice and the actual wage garnishment may get as long as half a year. However, you should not wait that long to take action. The best way to explore avenues related to IRS bank levy release is to consult a tax lawyer. No need to search for ‘Dallas tax lawyer near me’, as the Law Offices of Nick Nemeth can help.

Blog Related URL: A Concise Guide to Paying Back Taxes

Ways to stop wage garnishment

If the IRS has already started garnishing your wage, here are the best ways to stop the garnishment:

Pay off your tax debt in full

The first way to stop wage garnishment is to pay off all of your tax obligations at once. Remember that the IRS is garnishing your wages to collect the debt you owe. Once you fully pay your dues, there will be no reason for the government agency to garnish your wages. You could also let the IRS continue with wage garnishments from your paychecks until your tax debt is fully paid, however, there’s a catch. Making a lump sum payment will be more affordable overall, as interest and penalties will continue to accrue throughout the life of wage garnishment. This means you will have to pay more than you owe if you opt to let the wage garnishment stay in place.

Blog Related URL: Can You Buy a House While Owing the IRS?

Change your employer

Switching your job is the easiest thing to do in order to stop wage garnishment. However, this can only be a temporary solution, given that it won’t take long for the IRS to know about your new employer. Once the IRS gets to know about your job change, the wage garnishment will resume.

Set up a payment plan

If you are going through financial hardships, get in touch with the IRS to arrange a payment plan. You can arrange a short- or long-term payment plan for a nominal cost, depending on how much you owe. An experienced Dallas tax lawyer can help you figure out the best possible payment plan for you. To avail a payment plan, you must be able to prove your financial constraints. You must also show that wage garnishment will prevent you from caring for the basic needs of your family.

Consult a tax professional

Tax professionals have immense experience in dealing with the IRS and handling challenging tax issues. A tax expert will assess your current financial condition and tax burden to chart the most effective way to proceed. Working with a Dallas tax lawyer can help you easily stop a wage garnishment at the earliest.

Final Word

Wage garnishment is a frustrating experience for taxpayers. There is, however, nothing to worry about when you have the right kind of help at your disposal. When looking for an experienced IRS attorney in Dallas, Texas, look no further than the Law Offices of Nick Nemeth. Your search for a reliable wage garnishment lawyer ends here. Our team of experienced IRS tax lawyers can help resolve all your IRS tax-related problems, including wage garnishment. Contact us today for a confidential, no-obligation consultation at (972) 426-2553 or fill out our contact form, and we’ll get back to you as soon as possible.