If you owe back taxes, you might find yourself wondering how you can prevent the IRS from garnishing your wages. You are not alone; many people in the Atlanta area find themselves stressing out about their tax debts and wage garnishments. It is best not to procrastinate or ignore the situation, because you could miss out on options that could protect your wages from garnishment from the IRS. You might think your situation is hopeless, but there are options that you might qualify for.
Keep in mind that the IRS just wants what you owe; garnishments are a last resort that is often used for delinquent taxpayers. Once you receive notice from the IRS that they will place a levy on your personal assets until repayment is complete or acceptable arrangements are made that qualify for IRS levy release, consider the following options:
Contact the IRS
The earlier you contact the IRS and inform them of your financial circumstances, the sooner you can resolve the matter without endangering your wages. Verify how much your tax debt is. You may want to consult with a tax professional. If you do not believe the amount that the IRS says you owe is accurate, tell them. Depending on your circumstances, they may allow you to set up a payment arrangement or to settle for less than what is owed with an Offer in Compromise.
Schedule a hearing
If the IRS is not able to work with you, they will send a Collection Due Process. Do not ignore this notice; it is the last one they are legally required to send out before the garnishment process starts. The CDP gives you 30 days to appeal and schedule a hearing. At the hearing, you can again request for an installment agreement or an Offer in Compromise. You could also dispute what is owed. If you decide to appeal, you must have proof to substantiate your claim. There are circumstances where you may not qualify for an appeal/dispute.
A tax law attorney can offer guidance that is specific to your situation. There is also a variety of tax defenses you could use, including economic hardship.