If you have unpaid taxes and a job, the IRS can get money out of your paycheck. A levy is a legal hold on your property. The result of a levy is the transfer of your property (usually money in your bank accounts) to the IRS. When the IRS puts a levy on your wages, this is called wage garnishment. Click Here For IRS Wage Levy!
The IRS will send a notice of wage garnishment (levy) to your employer. Once the employer receives it, he must begin to withhold whatever percentage of your pay that the order calls for. Your new lower pay may not be enough to support yourself or your family. The wage levy will continue until all of the taxes owed are satisfied. Unfortunately, interest will continue to accrue on the total tax you owe during the garnishment period.
Understanding the IRS Wage Levy
If you're married, the IRS may issue wage levies against both the husband and wife. This can cause relationship problems when one spouse was unaware of the severity of the tax problems. A wage levy can be difficult to stop, but it can be done.
Since the IRS is being paid while it has a wage levy in effect, it can be difficult to convince the IRS that they should remove the levy. However, there are some circumstances that can help end a wage levy. One of these is to convince the IRS that the levy creates an undue hardship. Hardship is a legal term, which can be confusing and difficult to establish. Tax professionals such as our Tax Tiger team understand the fine points of establishing hardship. Contact Tax Tiger to get a free consultation and relief from the burden of tax debt!
