IRS Wage Garnishment

    Has the IRS Garnished Your Wages? Your Bank Account?

    Depressed Businessman When the IRS engages in enforced collection of a tax debt it almost always begins with an IRS wage garnishment or an IRS bank levy.

    The Notice of Wage Levy

    wage-garnishment-pic1 The IRS will serve what is known as a Notice of Levy (the “IRS Levy”) on all of the taxpayer’s known financial institutions and employers.

    A Wage Levy takes effect immediately upon receipt and the taxpayer’s employer must pay over to the IRS the proper IRS levy amount on each payday the levy remains in effect.

    Generally, a bank must freeze your account for 21 days from the date of the Bank Levy before it is required to turn over the funds to the IRS. This gives the taxpayer, the bank and the IRS an opportunity to resolve the matter before the taxpayer’s funds are lost.

    We help taxpayers with wage garnishments

    IRS Wage and Bank Levies are a Last Resort

    The IRS usually will not resort to the issuance of bank levies and wage garnishments until after it has made several attempts to contact the taxpayer and resolve the matter amicably through the use of an IRS collection alternative such as voluntary payment, an installment payment plan or an IRS settlement (“Offer in Compromise”).

    Often our clients’ first contact with us is after the IRS has begun enforced collection and has issued an IRS wage levy, an IRS bank levy or both.

    The tax attorneys, CPAs, and IRS enrolled agents in our Orlando and Tampa tax offices regularly help taxpayers get their IRS wage levies released (see photo below for copy of release of levy); however, it is often a difficult job because the IRS, having been ignored by the taxpayer prior to our engagement, is now in no mood to make concessions to the taxpayer.

    Advice and Recommendation

    wage-garnishment-pic2If you have gotten any kind of collection notice from the IRS it is wise to call a tax professional to discuss the potential consequences of IRS action.

    The earlier you address your IRS tax problems the better your chances of obtaining a favorable outcome. Contact us today

    Contact The Pappas Group in Orlando immediately upon receipt of the first IRS notice you get demanding payment of back taxes or requesting the filing of an unfiled return for a free consultation and evaluation of your case.

    We can help you