If the IRS is taking a portion of your hard-earned wages, it can be a stressful and financially draining experience. However, it’s important to know that you have options and strategies to halt IRS wage garnishment and take control of your financial situation.
If you’re currently facing IRS wage garnishment, our goal at Ace Plus Tax Resolution is to provide you with the insight and support necessary to handle this challenging issue. Let’s explore what IRS wage garnishment is, why it happens, and, most importantly, how you can take action to stop it.
What is IRS Wage Garnishment?
IRS wage garnishment is a legal measure the IRS uses to collect unpaid taxes directly from your income. The IRS doesn’t need approval from a court to begin garnishing wages.
When the IRS plans to garnish your wages, they will send you official notices, including a Final Notice of Intent to Levy. This serves as a warning that wage garnishment is imminent. If you don’t respond or take action within a specific timeframe, the IRS will proceed with garnishment.
How IRS Wage Garnishment Affects You
Wage garnishment impacts your income by reducing your take-home pay. This can make it much more difficult to manage your regular expenses or maintain your standard of living.
While the direct reporting of Notices of Federal Tax Lien ceased affecting credit scores after 2017, and it’s unlikely a wage garnishment is directly reported, the financial distress leading to the garnishment remains a critical issue. If the reduced income from wage garnishment makes it difficult to pay other bills (credit cards, loans, etc.), those missed payments will be reported to credit bureaus and negatively impact your score, making it harder to secure loans or favorable interest rates in the future.
It’s also common for wage garnishment to create emotional and relational stress. The embarrassment of colleagues or family members becoming aware of the garnishment can add pressure to an already difficult situation.
Steps to Stop IRS Wage Garnishment
Taking action is essential when dealing with IRS wage garnishment. Here are key steps you can take to put an end to the garnishment:
- Respond to IRS Notices: It’s critical to react promptly to any IRS notices you receive regarding wage garnishment. Ignoring these notices will only make things worse. You may be able to request a collection due process hearing where you can discuss your case with the IRS.
- Explore Payment Plans: The IRS provides various payment options to help you manage your tax debt. One option is an installment agreement including a “Partial Pay Installment Agreement,” which allows you to pay your balance over time. Another alternative is an offer in compromise, where you can settle your tax debt for less than what is owed.
- Request a Hardship Exception: If the garnishment is causing significant financial hardship, you may qualify for an exemption. A hardship exemption could temporarily halt the garnishment or reduce the amount deducted from your wages.
- Challenge Tax Discrepancies: If you believe there’s an error in the amount the IRS claims you owe, it’s important to dispute the tax assessment. If you do so through the proper channels, it may stop the garnishment until the issue is resolved.
- Get Professional Help: Handling tax issues on your own can be overwhelming and complex. That’s where a trusted tax expert comes in. At Ace Plus Tax Resolution, we have the experience to guide you through the process, place a collection hold, represent your interests, and negotiate on your behalf with the IRS. Our experts can help reduce the burden of IRS negotiations and secure the best possible outcome for you.
The Ace Plus Tax Resolution Advantage
Hiring a skilled tax professional is crucial to effectively stopping IRS wage garnishment and regaining control of your financial situation.
James Cha, the owner of Ace Plus Tax Resolution, has over 30 years of experience in dealing with IRS issues and has successfully assisted countless individuals in resolving wage garnishment matters. With deep expertise in tax law, James and his team understand the complexities involved and can explore all available options to reach the most favorable solution for your case.
When you work with Ace Plus Tax Resolution, you get a committed partner who will fight for your rights. We’ll handle negotiations with the IRS on your behalf, leaving you with peace of mind knowing that your case is in capable hands.
Don’t let IRS wage garnishment control your life any longer. Call Ace Plus Tax Resolution today at 213-600-7388 for a no-risk consultation, and take the first step toward regaining control of your financial future.
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