Learning that your wages are being garnished by the IRS can be frustrating, especially when money is already tight. The government has greater authority to siphon off part of your wages compared to your other creditors.
The good news is that there may be an option for ending the garnishment and settling the debt another way. A skilled tax attorney can answer your questions and help you understand what these paths might look like. Instead of just dealing with losing part of your paycheck each week, talk to a Richmond wage garnishment lawyer today.
Wage garnishment is a legal process where part of your paycheck is taken to pay a debt. Most creditors must go to court, get a judgment, and then obtain a court order before they can garnish your wages. The employer then withholds a set portion of your earnings and sends it to the creditor.
Once a garnishment starts, it reduces your take-home pay and can make it harder to cover everyday expenses. That is why it is important to understand how the process works and what options you have to stop it.
In order to garnish your wages, the IRS will first send you something called a Final Notice of Intent to Levy. Once you receive this notice, the IRS can contact your employer directly and require them to withhold part of your wages. Your employer must comply or face steep financial consequences, so you can expect them to start withholding from your check right away.
Unlike most garnishments, the IRS does not need a court order. This gives the agency broad power to act quickly if you do not respond. The amount the IRS can take depends on your filing status and number of dependents, but it often leaves you with only a minimum exempt amount.
The IRS can also take income from a second job. In fact, it may garnish most or all of those wages because the exemption typically applies to only one primary source of income. You can expect this levy to remain in place until the debt is paid, although there are ways a Richmond wage garnishment attorney may be able to end it early.
There are a few options available for stopping wage garnishments. A Richmond wage garnishment attorney could help you with the following:
By far, the simplest way to end a wage garnishment is by paying your tax debt in full. Once your balance reaches zero, the government will release the garnishment and stop pulling from your paycheck.
Alternatively, you can end a garnishment if the IRS accepts your offer in compromise, which means settling the debt for pennies on the dollar.
The IRS might agree to halt the garnishment if you set up an installment agreement and make regular payments towards your debt.
If the garnishment prevents you from covering basic living expenses, you can request a hardship release. Securing a hardship release requires that you are genuinely unable to cover your basic expenses without your full check.
The IRS makes mistakes, even when it comes to wage garnishments. If you act quickly after receiving your notice, you have the opportunity to halt the process while you challenge the garnishment. This is done through something called a Collection Due Process hearing, and you are entitled to hire an attorney through all of it.
Having your wages garnished? Now is the time to act. Reach out to a Richmond wage garnishment lawyer right away to discuss your options.