IRS Wage Levy?
We can stop an IRS levy on your wages.
IRS Wage Levy
Otherwise known as IRS wage garnishments, a wage levy is when the IRS seizes part of your paycheck to satisfy back taxes.
Ideally, we would help you prevent a wage levy before the IRS garnishes your wages. No one wants their employer made aware of their tax problems, and a wage levy can be a difficult financial burden to bear.
However, we can also stop an IRS wage levy that is already in effect.
Get Help Stopping an IRS Wage Levy
Start with a no-obligation, free consultation now: 1-855-212-5900
Or click here to request a callback
What Happens When the IRS Levies Your Wages?
If the IRS assesses an amount due on your taxes, they will issue you notice and a Demand for Payment. After several notices, you may receive a Final Notice of Intent to Levy and a Notice of Your Right to a Hearing. When will the IRS start garnishing wages? As soon as 30 days after issuing these notices, the IRS can garnish your wages.
Here is how an IRS wage levy works; IRS garnishment process:
- Employer contact: The IRS will contact your employer and require that your payroll department withhold a percentage of your pay. Your employer must remit that withheld portion to the IRS. Employers invariably comply because they can be held liable for the amount not deducted.
- Continuous Garnishment: Unlike a bank levy, the levy of wages is continuous. It can remain in place—unless stopped—until the wages collected cover the back taxes, plus interest and penalties.
How We Can Stop an IRS Wage Levy?
At Precision Tax Relief, we specialize in solving urgent IRS tax problems like tax levy on paycheck. Often, we can stop a wage levy in just 24-hours.
Stopping the wage levy wins us time to either negotiate payments or challenge the claims of the IRS.
To release a wage levy, we can:
- Negotiate an Offer in Compromise (OIC);
- Arrange for a Streamlined Installment Agreement;
- Claim economic hardship to reduce payments;
- Have your debt classified as Currently-Not-Collectible;
- Prove that the statute of limitations on collecting the back taxes has expired;
- Challenge the IRS on their adherence to proper procedures.
These are a handful of the options available to stop the IRS from garnishing your wages.
We know that having your wages garnished makes it difficult to get by on your remaining pay. That is why we offer affordable payment plans and work quickly to win your tax relief.
In negotiating OICs—one of the most favorable outcomes possible—we have a 94% success rate. Our OIC clients have paid an average of only 3.6 cents on every dollar owed. That’s why in more than 700 reviews, Precision Tax Relief has a 98% satisfaction rating.
Get Help Stopping an IRS Wage Levy
Start with a no-obligation, free consultation now: 1-855-212-5900
Or click here to request a callback
FAQs on IRS Wage Levies
What is a wage levy?
A wage levy, also known as wage garnishment, is a process the IRS uses to collect back taxes directly from your paycheck.
Why is there a tax levy on my paycheck?
A tax levy on your paycheck occurs because the IRS has determined that you owe back taxes, and you have not responded to their notices demanding payment.
Can the IRS garnish my wages?
The IRS can legally levy on paycheck if:
- They have determined that you owe back taxes and sent notice to demand payment;
- You have not paid the tax assessed as due and/or have not responded;
- The IRS sent a Final Notice of Intent to Levy.
If you have received letters from the IRS regarding a tax debt, and you cannot pay, you should work with a professional to negotiate a resolution as soon as possible.
How long does it take for the IRS to garnish wages?
The IRS will send multiple notices advising you of outstanding tax debt and the risk of wage garnishment. After receiving a Final Notice of Intent to Levy from the IRS, you have 30 days to act. You can avoid the levy by paying your taxes in full or negotiating an alternative arrangement within that 30-day period.
How long does an IRS wage levy last?
Once the IRS imposes a levy on your wages, the garnishment is continuous until one of three outcomes: 1) you make arrangements to pay your overdue taxes; 2) the debt is paid, or 3) the levy is released, an outcome we can often negotiate.
How much of my wages can the IRS levy from each paycheck?
How much can the IRS garnish? The amount of the IRS levy on your wages is calculated based on filing status, frequency of pay and exemptions.
When the IRS mails your employer the levy notice, they will include Publication 1494 (PDF), a table outlining how to determine the amount of your wages exempt from the garnishment.
For example, according to the 2018 table, if you are single and claim one exemption, the IRS will allow you to keep $204.81 per week. If you are married filing jointly and claim six exemptions, you will keep $603.85 per week.
To calculate your exemptions, you will be asked by your employer to complete a Statement of Exemptions and Filing Status. You must return this statement within three days, or a default exempt amount will be calculated—possibly not in your favour.
How long does it take to remove an IRS wage levy?
We regularly stop IRS levies in just 24-hours. When you retain our services, our experienced tax professionals work urgently to stop IRS collection efforts while we negotiate a favourable resolution on your behalf.
How to calculate a federal tax levy
Federal tax levy calculation is based on your filing status, frequency of pay, and exemptions, which determine how much of your paycheck is exempt from the levy.
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