A wage garnishment is an IRS issued levy used to collect a tax debt. The IRS orders an employer to retain a portion of an employee’s paycheck to be used towards paying the tax debt. Although an employer cannot dismiss an employee because of a wage garnishment, they are often deemed detrimental or embarrassing. The wage garnishment can be 20-80% of a paycheck and is enforced until the debt is completely paid. This money can also be taken out of bank accounts.
A tax attorney can assist in removing or reducing the wage garnishment. Once a Notice of Intent to Levy is received, a tax attorney should be immediately retained. Wage garnishments are used by the IRS as a last resort, so the IRS wants to resolve the issue. If an individual cannot afford the garnishment, the IRS may lessen the garnishment based on his income and allowable expenses. A tax attorney may often times be able to have the wage garnishment released due to his experience in negotiating with the IRS.