The IRS has the power to seize your wages and apply those funds to your outstanding IRS debt, including tax penalties and interest. This is true even if you own those funds jointly with your spouse or someone else.
Generally, the IRS issues a wage garnishment as a last resort when the taxpayer has ignored previous attempts at IRS collection.
When Does the Wage Levy End?
The tax attorneys, CPAs, and IRS enrolled agents at The Pappas Group in Orlando have gotten hundreds of IRS wage levies voluntarily released by the IRS.
Call us today for a free consultation to discuss your case.
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If the IRS levies your wages, salary, or federal payments, the levy will end when:
- A release of levy is obtained,
- You pay your tax debt, or
- The statute of limitation expires for legally collecting the tax. Generally, the IRS has only ten years to collect a tax once it is assessed.
If the IRS levies your wages, your employer is required to send your pay to the IRS.
How do you get the IRS to Release a Levy?
The IRS generally will not levy a taxpayer’s wages unless the taxpayer has previously ignored its prior notices or unless it thinks collection of the tax debt is in jeopardy. Consequently, once a taxpayer’s bank account or wages are levied the IRS won’t release the levy without assurances that the taxpayer will not continue to ignore it and avoid the payment of his or her debt.
The tax attorneys, IRS enrolled agents, and CPAs at The Pappas Group in Orlando have intervened on behalf of taxpayers in thousands of cases and persuaded the IRS to release the wage levy in exchange for the taxpayer’s agreement to settle the tax debt through the filing of an Offer in Compromise or in exchange for the taxpayer’s entrance into an IRS installment payment agreement to pay the IRS debt off over time.
Here are some dos and don’ts to consider if the IRS levies your wages:
- Do call the tax attorneys, IRS enrolled agents, and CPAs at The Pappas Group for a free consultation and explanation of your rights and obligations under the law;
- Don’t ignore the notice; this will only make your problems worse;
- Do evaluate your finances to determine what, if anything, you will be able to pay to the IRS to establish good faith (this will help you get the IRS levy released);
- Don’t panic. While your problem is a serious one, it can be fixed if you know your rights and obligations and the forms of tax relief available to you.