Wage Garnishment Protection

What Can You Do When the IRS is Reaching Into Your Paycheck?

When the IRS goes about settling debts, it does not do so gently, and your employer is powerless to help you out. Once an employer receives notice that the IRS is garnishing your wages, the employer is required by law to send a percentage of your money directly to the government, even if that means leaving you with too little to pay the bills.

The government will continue taking money from your paychecks until your debt, and all penalties and interest acquired, is paid.

There is a way to Stop IRS Garnishment

The IRS must follow strict guidelines when imposing and releasing a wage garnishment. If you find yourself in conditions that the IRS considers “economic hardship” the garnishment can be stopped!

We can help you arrange a payment plan with the IRS that is much more favorable to YOU and your current financial situation. If the government is already garnishing your wages, we can provide assistance in negotiating a release of that garnishment and arranging for a more suitable payment plan in its place. This allows you to receive the full benefit of your wages while working to meet your debt to the IRS in a more reasonable manner.

Frequently Asked Questions - Wage Garnishment Protection

What is wage garnishment?

Wage garnishment is a legal process that requires your employer to withhold a portion of your paycheck to satisfy a debt. 

In federal tax matters, this is referred to as a wage levy.

How does an IRS wage levy work?

An IRS wage levy:

  • Is continuous (not one-time)
  • Requires your employer to remit part of each paycheck to the IRS
  • Remains in place until the debt is paid or the levy is released
How much of my paycheck can the IRS take?

The IRS must leave you a minimum exempt amount based on:

  • Filing Status
  • Number of Dependents
  • Pay Frequency 

The exemption is calculated using IRS tables. The remaining wages are subject to levy. 

Do I receive notice before garnishment begins?

Yes. Before issuing a wage levy, the IRS must:

  1. Assess the tax
  2. Send Notice and Demand for Payment
  3. Issue a Final Notice of Intent to Levy
  4. Provide an opportunity to request a Collection Due Process (CDP) hearing.

If no timely action is taken, garnishment may begin.

How do I stop a wage garnishment?

Potential methods include:

  • Requesting a Collection Due Process hearing (if timely)

  • Entering into an Installment Agreement

  • Submitting an Offer in Compromise

  • Requesting Currently Not Collectible (CNC) status

  • Demonstrating economic hardship

  • Proving the levy was issued in error

Prompt action is critical.

What qualifies as economic hardship?

Economic hardship exists when garnishment prevents you from meeting necessary living expenses, such as:

  • Housing

  • Utilities

  • Food

  • Transportation

  • Medical expenses

If hardship is demonstrated, the IRS may release the levy under IRC § 6343.

When should I seek professional assistance?

Immediately upon receiving:

  • Final Notice of Intent to Levy

  • Employer notification of levy

  • Revenue officer contact

  • Notice of Federal Tax Lien

Early intervention increases the likelihood of stopping garnishment before significant wage loss occurs.

Ready to come in for an appointment?

Click here to schedule a time to meet with us. We will NOT make dealing with a tax professional as painful as it’s been in the past!

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