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IRS wage garnishments and how to get them released

On Behalf of | Mar 24, 2023 | Tax |

When Texas residents owe back taxes and do not work with the Internal Revenue Service to resolve the matter, their paychecks can be garnished until the amount due is paid. The IRS usually sends taxpayers five letters before it takes steps to garnish their wages, and the last of these letters states quite clearly that a garnishment is imminent. After this letter is sent, the IRS sends a levy notice to the taxpayer’s employer.

IRS wage garnishments

The garnishment remains in place until all unpaid taxes are recovered, but not all of a taxpayer’s income can be garnished. The IRS cannot garnish earnings that cover child support, annuity or pension payments, and a deduction is applied before wages are garnished to make sure the taxpayer will still have enough money to pay their bills. This figure is arrived at by taking the standard deduction and then adjusting it based on how many dependents the taxpayer has.

Releasing an IRS wage garnishment

If your wages are being garnished by the IRS, there are several ways that you can get it released. However, the IRS will probably refuse to release the garnishment if you have failed to file tax returns during the last six years. If you have filed tax returns every year, you could get an IRS wage garnishment released by paying your tax bill in full, setting up a payment pan with the IRS, or convincing the IRS that the garnishment is causing you undue financial hardship.

Avoiding IRS wage garnishments

If you owe unpaid taxes and do not want the IRS to garnish your wages, you should respond to the letters you receive from the agency. The IRS will probably send you five notices before it contacts your employer, so you will have several opportunities to contact the agency and set up an installment plan.