The IRS can use wage garnishment to collect tax debts from delinquent taxpayers. Employers are required to deduct a portion of each paycheck and send it to the IRS. The best way to avoid wage garnishment is to pay taxes on time, and the IRS can also seize property to pay debts.
US taxpayers who are delinquent in their tax payments may find themselves at the mercy of the Internal Revenue Service (IRS). This organization, as an arm of the United States government, has a variety of tools available that allow them to extract payments. The IRS wage garnishment is one of the most common means for the tax agency to ensure that payments are made against a tax debt; It is most often used for debtors who have regular salaries.
An IRS wage garnishment requires the employer to deduct a portion of each paycheck and send it to the IRS. This method ensures that the debtor cannot hide earnings, since the employer is legally responsible for overseeing the deduction. The amount of the lien can depend on several factors, including total income and an amount allowed for living expenses. The IRS wage garnishment limits are quite high, and the amount left for living expenses is based on a national average rather than personal circumstances, which can leave a debtor with far less money than is necessary for their lifestyle. life.
There are rules that guide an IRS wage garnishment. First, the government must send a notice to the debtor that a levy will occur if the tax debts are not paid. This often comprises two notices: an initial request for payment and a final notice that begins the repossession process. The IRS is generally willing to work out a monthly payment plan if a person cannot pay the full amount owed at one time; Garnishment usually takes place if the debtor is unwilling or unable to pay any amount of the debt.
The best way to avoid an IRS wage garnishment is to pay taxes annually and on time. Garnishment typically becomes a problem when a debtor refuses to deal with taxes owed over a period of years. Hiding a tax debt will only increase the chances of a lien in the future; Since the IRS is usually able to work out payment structures, it may be wise to speak with an IRS agent as soon as a debt begins to seem unmanageable.
In addition to the IRS wage garnishment, the IRS has the right to seize property to pay a tax debt, including real estate, personal possessions, retirement accounts, and cars. In some cases, seizure can be done as an alternative to garnishment, but in cases of really high debt, both seizure and garnishment can be used. Unless a clear accounting error can be proven by the IRS, there is generally no legal way to pay a tax debt or be subject to levy.
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