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.
Wage garnishments are an additional method of tax levy utilized by taxing authorities, though the taking of monies from your paycheck is a continual process. A levy on your wages will remain in place until:
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.
Levies and wage garnishments are often the most irritating and embarrassing of all collection methods, which is exactly the intent of taxing authorities. They use this method of involuntary, public debt collection to make taxpayers be compliant. However, it’s not uncommon for wage garnishments to be released, and we have done it for our clients time and time again. Five Stone’s experienced and trusted tax professionals are here to help you get the best possible outcome.
Our team will get you on the road to financial freedom.