Our tax experts specialize in wage garnishment laws and can help you keep more of your earnings.
When you owe the IRS and fail to pay, they can take collection actions, including wage garnishment (also called a wage levy). This allows the IRS to withhold a portion of your paycheck until your tax debt is cleared. Unlike other creditors, the IRS doesn’t require a court order to garnish wages.
The IRS sends the wage garnishment notice directly to your employer. They’ll also include a wage levy table specifying how much to withhold. Your employer will give you a form to complete and return within three days; if you don’t, exemptions are calculated as married filing separately with no dependents.
The IRS may take up to 70% of your paycheck. The exact amount depends on your filing status and dependents. If you work for multiple employers, one may be levied 100% while exemptions apply to another. Taxes are still owed on the full earnings.
Self-employed taxpayers may face an accounts receivable (AR) levy. Unlike wage garnishment, an AR levy can seize the full payment due. Though it’s a one-time event, the IRS can repeat it until the debt is paid.
Wage garnishment stops once your back taxes are fully paid.
If you owe under $50,000, you may establish a payment plan with the IRS.
Negotiate with the IRS to pay a reduced amount of your total tax debt.
If you cannot pay, the IRS may classify you as “currently not collectible,” pausing garnishment.
Facing IRS wage garnishment? Contact Sky View Tax Resolution. Our experienced tax professionals can help you stop garnishments and regain control of your paycheck. Schedule a free consultation today!
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