If you are obligated to overdue taxes with the Internal Revenue Service, they possess the authority to administer a levy or file a lien on your belongings. A particular type of levy is a wage garnishment. When a wage garnishment is enacted, money will be deducted from your wages each pay period. It is cleverest to contact the IRS to settle your account prior to your account attaining a wage garnishment.  For the Internal Revenue Service to garnish your wages there are regulations they must adhere to beforehand. With a group of qualified tax professionals, such as Omni Tax help, we can educate you in understanding the guidelines of an IRS wage garnishment. Understanding your rights will facilitate you to be organized ahead of time before the garnishment develops.

When the Internal Revenue Service inputs a wage garnishment on your account, the request will be delivered directly to your employer. Your employer cannot contend this garnishment. Although it is not a court ordered application your employer must tolerate the garnishment. They must submit a percentage of your earnings to the IRS to satisfy your tax liability. The Internal Revenue Service has additional supremacy over several other liability agencies. This implies they can take precedence over supplementary garnishments and make a requirement that the highest percentage be withdrawn each pay period. The IRS is not obligated to the same state and federal limitations as additional creditors. The IRS can garnish your wages and the only instruction the tax code obliges them to perform is leave sufficient money, that they consider necessary, for you to pay essential living expenses.

A Portion of your earnings can be excluded from an IRS wage garnishment. To determine the excluded quantity that the IRS will take into consideration, you must provide two fragments of information. Your standard deduction, also identified as your filing status, and the number of dependents you have within your household. Each year that a levy is published must be determined separately. This is because there can be a difference in your filing status and dependents claimed from year to year. When your employer receives the levy notification from the IRS it will also include a Publication 1494. This publication will consist of a tax table for your employer to use in calculating the quantity of your wages that can conceivably be excluded from the levy. Your employer will furnish you with a Statement of Dependents and Filing Status form to be completed within three business days. It is important that you do not procrastinate until the last minute to fill out this request because the Internal Revenue Service will determine the exempt amount for you. If they make the determination for you, they will calculate your exempt amount as married filing separate with no dependents. This will position you in a maximum tax bracket available. This will also indicate that your excluded amount will be minimal. For example, a person who is claiming head of household and has two dependents, the IRS is only required to leave $542.03 of your weekly paycheck. That means that if you get paid $1,300.00 a week, the IRS withholds $757.97. If they calculate your exempt amount as Married Filing single with no dependents then out of $1,300.00 a week, the IRS is only required to leave $238.46. Which means $1,061.54 will be transferred.

When A Final Notice of Intent to Levy is published it will announce that a levy is proposed. Your appeal rights will be included with the Final Notice of Intent to Levy, CP 504. To have the levy released you are required to file an appeal.  You will have 30 days from the initial date of the IRS notice to file this appeal. This petition is recognized as a Collection Due Process (CDP) hearing. Once you file the appeal you are provided the opportunity to demonstrate to an appeals officer that the wage garnishment could present a financial hardship for you and your family. Based on the financial hardship, wage garnishments are typically released. Throughout the appeal process, you will be expected to contest the wage garnishment that was implemented. It would not be the time to dispute your entire tax balance or additional matters that could be present.  

Until the IRS concludes to a resolution on your account, the wage garnishment will continue. It will remain in effect until the overdue taxes plus any penalties and interest are satisfied in complete. The IRS will additionally withhold any upcoming tax refund you are entitled to and utilize it to satisfy the outstanding balance. Separate from setting up an Installment Agreement, or payment plan, there are different scenarios that can release a wage garnishment. If your Collection Statute Expiration Dates, or CSED’s, have expired, the IRS will be required to terminate the garnishment. A Collections Statute Expiration Date is calculated for each year that a balance is present. Generally, the expiration date is 10 years from the date your original tax returns are filed. The IRS has until the expiration date to attempt to collect on the federal tax liability owed.  If you file bankruptcy, then that would also be a qualifying incident to eliminate the garnishment. Keep in mind that tax liability is not typically discharged in bankruptcy. The explanation of why a wage garnishment would be released during bankruptcy is because you can demonstrate a financial hardship.

If you are concerned that your earnings are in jeopardy of a wage garnishment from the IRS, you should contact an expert tax professional immediately. Omni Tax Help specializes in negotiation in conjunction with the Internal Revenue Service. We take any type of levy action seriously. We will work relentlessly on your behalf to guarantee your assets and wages. If your account has hit the stages of wage garnishment then it means that other aggressive collection actions are not far behind. This could incorporate bank levies and seizure of your property.

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