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Has an IRS levy caused you economic hardship?

On Behalf of | Oct 19, 2021 | IRS Issues

When facing financial difficulties, it may seem as if every day there is a new obligation that you cannot meet. Even when you try to do your best to get back on track, something may come up that knocks your plan out of balance. You, and many other Georgia residents, may feel as if the only thing you can do is meet your basic needs as well as possible. Unfortunately, creditors may make even that seem impossible. 


In particular, if you owe back taxes, the Internal Revenue Service may have placed a levy on your wages or bank account. Now, you may see your desperately needed funds taken away before you even get your hands on it. While the IRS does have the authority to garnish wages and place liens and levies on property, if it causes you a hardship, you may have options. 

Determine if a financial hardship has resulted 

You may believe that not being able to pay your outstanding bills is evidence enough of financial hardship, but that is not the case. If the IRS has placed a levy on your wages or other financial account, the situation may create a hardship for you if it results in an inability to pay for your basic needs and reasonable living expenses. Again, you may think that outcome is obvious, but remember, the IRS will require evidence. 

If a true immediate economic hardship results from wage garnishment, you can discuss the matter with the IRS. You will need to provide details regarding your current finances so that you can show the hardship the levy creates. However, even if the IRS agrees that an economic hardship has resulted from the levy, that agreement does not mean that the agency will free you from your tax obligation. 

What can you do? 

While the IRS may remove the levy from your wages or bank account, you will likely still need to find a way to address your outstanding tax debt. The agency may provide you with information about their payment plans, currently not collectible status, offer in compromise and other possible routes. Still, it is important to remember that even these options are not a guarantee as you will need to apply for approval for any of these programs. Gaining more information and assistance if needed may be useful.