When the IRS or the State has not received payment for back taxes, they will take the necessary measures to collect the money owed, including seizing assets. This action is known as a “levy”. Taxing authorities have a legal right to essentially take anything of value to pay off the unresolved tax debt. This includes seizing bank accounts, requiring payment from accounts receivable, occupying property for auction, and taking over car titles.
Once the wage levy is lifted through tax resolution, the wage garnishments will be ceased. Until then, the IRS will continue to receive part of your wages every pay period.
Because wage garnishments serve as a form of involuntary payments, they can occasionally be lifted through tax resolution by establishing a formal, approved installment agreement. Aside from eliminating responsibility from your employer and empowering you to take care of the payments yourself, an installment agreement can generally be established with payments that are substantially lower than the wage garnishment amounts. That’s why this method of tax resolution is considerably popular, as it allows taxpayers to save money while they pay off their tax debt over time.
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