An astounding one in five American taxpayers likely loses sleep over their fear of owing money to the IRS. For many, the fear becomes a reality when they received notice of an IRS wage garnishment. Wage levies don’t pop up overnight, but they do often catch taxpayers off-guard.
What do you do when the IRS taps into your paycheck or files tax evasion charges against you?
If you have big tax problems, you’re in the right place—at least as far as your choice of reading material. Our mini-guide gives you a few solutions that should help you sleep better tonight.
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Can the IRS Garnish Your Wages?
Losing sleep over how much you may owe in taxes is one thing. Waking up to a wage garnishment notice is another issue. While it may seem unfair, the IRS does indeed have the power to tag a portion of your earnings as payment for back taxes.
That said, they must follow a strict set of rules before they can garnish your wages.
In brief, here are the necessary procedures the IRS goes through when preparing to collect monies owed:
- Initial Written Notice
- Documentation of Delinquent Taxes
- Thirty Day Notice Before Garnishment
- Final Notice
Although your final notice comes via certified or registered mail, there is no requirement for the post office to put it directly into your hands.
How to Avoid Big Tax Problems
Most of us have a healthy fear of the IRS. What we do with that fear determines how successful we are at resolving our tax issues.
The worst action you can take is to toss mail from the IRS into the circular file! Out of sight, out of mind doesn’t work to avoid wage garnishment or the more severe tax evasion charges.
One of the best things taxpayers can do to stay out of entanglements with the IRS is to:
- File Returns on Time
- Pay Taxes When They’re Due
- Request an Extension if Necessary
- Work with the IRS
About that last bullet point—when we say work with them, we don’t mean applying for an IRS position. In most cases, the IRS will work with taxpayers to resolve tax debt, whether it’s through an installment plan or one of their tax relief programs.
Consider Seeking Professional Help
IRS employees are real people, just like you, but that doesn’t make it any less intimidating to talk with them regarding your tax situation. Hiring an IRS tax attorney removes some of the stress and uncertainty surrounding wage garnishment.
An attorney will walk you through the different tax resolution options available to individuals. Further, your attorney works as your advocate if you choose to pursue either an installment agreement or an offer-in-compromise.
Whether you already know you owe back taxes or you’re anticipating tax problems in 2021, the time to seek professional legal help is now.
Worried About a Potential Wage Garnishment?
We hope today’s post offers some answers and a little comfort if you’re facing an IRS wage garnishment or tax evasion charges. Remember, you’re not alone, and there are solutions to avoid digging an even deeper hole for yourself.
If you’ve enjoyed reading this article, we’d love for you to continue browsing the blog. We’ve put together posts on a range of topics we think will interest you.