How can I stop a garnishment on my paycheck?
When Can the IRS Garnish Your Paycheck?
The IRS can garnish your paycheck only if you have an overdue tax payment. They are required to send several notices before garnishing your wages, ensuring you are aware of your tax debt and their intent to garnish if the debt remains unpaid.
Notices the IRS Must Send:
Notice and Demand for Payment
- The IRS sends an initial notice and up to two additional notices if there is no response.
Notice of Intent to Levy
- This notice informs you of the IRS’s intention to levy your assets, including wages.
Notice of Your Right to a Collection Due Process (CDP) Hearing
- Sent by certified mail, this notice is the final step before wage garnishment, giving you the opportunity to request a hearing to arrange a payment agreement or dispute the amount owed.
The CDP hearing notice provides you with 30 days to request a hearing. If you do not respond within this period, the IRS can begin garnishing your wages 15 days after the deadline.
In some cases, the IRS may skip the CDP hearing step and apply a levy immediately after the notice of intent. Even in these instances, you can still request a CDP hearing.
How Long Does It Take for the IRS to Garnish Your Wages?
After receiving the initial notice for payment, the process can escalate to wage garnishment within weeks. Typically, it takes between 11 and 25 weeks for the IRS to issue a levy, though it can be faster, especially if an IRS revenue officer is involved.
How Much of Your Paycheck Can the IRS Take?
The IRS cannot take your entire paycheck. They determine how much is exempt based on factors like your number of dependents and filing status. For detailed information on exemptions, refer to IRS Publication 1484. In addition to wage garnishment, the IRS can also take money from your bank account, Social Security income, and accounts receivable.
How Long Does a Wage Garnishment Last?
Wage garnishment by the IRS will continue until you repay the taxes and fees owed, reach compliance through a payment agreement, or the IRS runs out of time to collect the taxes. Other options include proving the levy creates a hardship, filing an offer in compromise, or proving the tax levy is incorrect. Once a levy is applied, the IRS notifies your employer to send a portion of your wages directly to them. After the levy is lifted, you can request the IRS to fax the release to your employer or wait for them to receive it by mail.
How Can I Stop a Wage Garnishment?
To stop wage garnishment, you can pay your tax debt in full, set up an installment agreement with the IRS, or utilize the Collection Due Process hearing to make arrangements before the levy is applied. Other options include proving hardship, filing an offer in compromise, or demonstrating the levy is wrong. Professional assistance from tax relief specialists can help you resolve wage garnishment effectively.