The IRS frequently relies on wage garnishment to address ongoing tax debt. Unfortunately, collection action often arrives at the most inopportune times — when you’re already stretched way too thin. Striking the right balance can be difficult, but we’ve offered a few simple suggestions to help you manage both immediate and long-term IRS issues.
Seek a Garnishment Release
Garnishment is a continuous form of collection, so it’s far from a one-time affair. Without a proactive approach, you could be subject to garnishment for a long time. If this change to your paycheck makes it impossible for you and your family to get by, it’s crucial that you halt collection activity as soon as possible.
Typically, this will take the form of a garnishment release. The IRS is obliged to pause collection activity such as wage garnishment if it determines that you’ve fulfilled your tax debt obligations — or that you’ll be better capable of paying your taxes once the levy is released.
Depending on your situation, you may be able to argue that wage garnishment causes undue economic harm. Otherwise, your best bet for bringing garnishment to an end may be to set up an installment plan.
What If the IRS Refuses a Levy Release?
If you’ve tried to halt garnishment activity but the IRS refuses to play ball, it may be time to explore other solutions. The Collection Appeals Process allows for a review of the levy, typically focused on whether it followed all necessary guidelines.
A Collection Due Process (CDP) or Equivalency Hearing may also be possible. This is available after you’ve received a final notice of the agency’s intent to levy your property. The hearing will focus on whether alternate arrangements are possible. As you await the hearing, collections such as garnishment will be paused.
If you’re currently struggling with IRS drama, it’s important to get your issues resolved before your wages are garnished. The Highland Tax Group can help you arrive at a prompt solution. Get in touch today to learn more about available options.