The Differences Between A Tax Levy And A Wage Garnishment

Last updated on August 8, 2024

At Bomar Law Firm, our lawyers understand the stress and anxiety that come with IRS tax issues, including the threat of a tax levy or wage garnishment. Our team of experienced tax attorneys, based in Atlanta, practices tax law exclusively. We provide comprehensive services to resolve all your issues with the IRS and the Georgia Department of Revenue. No matter how complicated or dire your tax problems seem, there is always hope for a positive outcome. Our lawyers do not judge our clients for their tax mistakes. Our founding attorney, Cal Bomar, is a former IRS chief counsel attorney, which gives our team unique insight into resolving these matters.

Understanding Tax Levies And Wage Garnishments

Both tax levies and wage garnishments are tools the IRS uses to collect unpaid taxes from individuals. However, these tools work differently and have distinct impacts on your finances.

What Is A Tax Levy?

A tax levy occurs when the IRS freezes you out of your bank account and seizes its funds to cover unpaid taxes, interest and penalties. The IRS can take all funds up to the amount it claims you owe.

What Is A Wage Garnishment?

Wage garnishment involves the IRS ordering your employer to withhold a portion of your paycheck to cover unpaid taxes. The IRS can garnish your wages without having to go to court for an order, though it will send you a notice before proceeding. This method directly impacts your earnings, reducing the amount you take home each pay period. Certain income, such as alimony, child support, Social Security benefits and unemployment benefits, are exempt from garnishment. Filing for bankruptcy also puts automatic stays on both garnishment and levies.

Find Out Legal Strategies For Dealing With A Garnishment Or A Levy

If you are facing a tax levy or wage garnishment, contact us today. Our Atlanta tax lawyers are here to provide the comprehensive support you need. Use our online intake form or call us at 404-841-6561 to schedule a free legal consultation.