IRS Wage Garnishment and Levy Process
Once the IRS sends you an “Intent to Levy” notice, they will contact your employer and begin to levy your wages.
- If you earn by way of a 1099:
The IRS may levy up to 100% of your paycheck. - If you earn by way of a W-2:
The IRS will usually levy up to 82% of your paycheck.
At our law firm, we specialize in bringing our clients to a 100% compliance level with the IRS. That is the first step in getting rid of your wage levy. Once that problem is solved, we go ahead and negotiate a payment plan on your behalf.
When the IRS has tried to collect back taxes unsuccessfully, they will begin to seize assets. By not opening letters or returning phone calls, they will take the next step. This process is called a “levy.”
When they attach wages, it’s called a wage garnishment. Wage garnishment (officially called a Wage Levy) can be the most stressful and humiliating of all collection tactics. The IRS does this to force taxpayers into compliance. Almost nothing is worse than having your wages garnished by an IRS wage garnishment.
By contacting Atlanta IRS tax relief attorney Ansari, we can work towards preventing or stopping wage garnishment. When the IRS files a wage garnishment, the taxpayer’s employer must intercept a percentage (up to 90%) of each of your paychecks and then forward that percentage to the IRS.
Wage garnishments remain in effect until:
- The taxpayer’s IRS back taxes are paid in full.
- A formal release is negotiated with the IRS.
The amount of money that the IRS can withhold is based on a variety of factors, such as:
- Whether or not the taxpayer is married
- The number of dependents
Help Stopping Wage Garnishment by the IRS
Our office realizes that the loss of income can be destructive and devastating to individuals and families. Immediately upon retention, we start negotiations with the IRS for a release.
In most cases, we get wage garnishments stopped on our first contact with the IRS.
If not, we will find out what is required to end the wage garnishment.
In most instances, we get these garnishments released before our client’s next paycheck!
Frequently Asked Questions
What is the difference between a wage garnishment and a levy?
A levy is a broad term for when the IRS seizes assets to collect back taxes. A wage garnishment, also known as a wage levy, is a specific type of levy where the IRS takes a portion of your paycheck directly from your employer.
How much of my paycheck can the IRS garnish?
If you are a W-2 employee, the IRS can typically garnish up to 82% of your wages. If you are a 1099 contractor, they may levy up to 100% of your earnings.
How long does a wage garnishment last?
A wage garnishment remains in effect until your IRS tax debt is paid in full or a formal release is negotiated. Without action, it continues indefinitely.
Can the IRS garnish my wages without warning?
No, the IRS must first send a “Notice of Intent to Levy.” If ignored, they may proceed with wage garnishment by contacting your employer.
How can I stop an IRS wage garnishment?
You can stop or prevent a wage garnishment by reaching out to a tax relief attorney, such as those at our firm. We negotiate with the IRS, often getting garnishments released quickly—sometimes before your next paycheck.