Wage garnishment is one the rights the IRS has to collect unpaid taxes and penalties. Under wage garnishment, the taxpayer’s employer withholds a certain percentage of their salary for a particular period. The said percentage is directed to the IRS instead of the taxpayer. It can be stressful for a taxpayer as the remaining amount may not be enough to cater for their living expenses. Sadly, the wage garnishment stays in effect until the penalties and taxes owed are fully paid or the wage garnishment is lifted. If in Dallas, you will need an experienced Dallas wage garnishment lawyer with a proven track record to help you deal with the IRS when it deploys wage garnishment on you as a method of collection.
The Degree of Sensitivity to a Wage Garnishment
Wage Garnishment also is also known as wage levy can happen without a court order. It is for this reason that it is essential to have legal representation when you get a Notice of Intent. Theoretically, the IRS can only garnish money from specific sources. Practically though any of your bank account funds risk wage garnishment including social security payments, pension payments, and child support.
The IRS is within the jurisdiction to garnish significant percentages of your wage; as high as 60% for single people, and 50% for married people with dependent children. It can be stressful and may leave you struggling or drive you to bankruptcy. Contact a wage garnishment Dallas lawyer that will actually help you work a way to find a sustainable way of paying your debt. They could work on an installment agreement or an offer in compromise.
Wage Garnishment & Tax Resolution
When the IRS processes your returns regardless of who submitted, it sends a notice of amount owed and a demand for payment. The note includes an itemized list of your charges which will cover for penalties, taxes, and interest. It will also indicate the date which they are due.
In the case that you fail to pay the tax debt, IRS sends a Final Notice of Intent to Levy. It is a 30-day written warning that must also explain the seizure process, the levy, and the options you have.
The IRS also sends a Notice to Your Rights to a Hearing at least 30 days before the start of the wage garnishment. In this period, you have the right for an appeal hearing and review with the Tax Court. After 30 days you still can seek for an Equivalent Hearing with Appeals for up to a year after getting the notice.
Failure to respond or act on these notices, the IRS moves on to wage garnishment. The difference with IRS is that it can cut out as much as they can from your wage only to leave you with an amount that could cover for basic living essentials.
There are various tax resolutions available for wage garnishment in Dallas. Installment Agreement allows for a payment plan depending on your living expenses, income, and tax owed. Offer in Compromise will enable taxpayers in severe financial trouble to pay their debt for cents on the dollar. If in a poor financial situation with likelihood to improve, the IRS can render you Currently Not Collectible which offers a temporary break from paying back taxes owed, but unfortunately, the total amount due will continue to increase. Then there is the declaration of bankruptcy which is used in severe cases, but this one ruins your credit.