How Do I Get a Wage Garnishment Released?
- November 13, 2019
- Posted by: asal
- Category: Tax Resolution
Can you imagine not being able to pay your monthly bills because your creditor already took your income? Whether you like it or not, the Internal Revenue Service (IRS) can use a variety of methods to collect the tax debt that you owe to them. In fact, the agency has the capacity to garnish 75% of your net pay through the so-called wage garnishment. When the IRS took their share, you may face a massive financial strain, which can make it challenging to live a normal life.
The IRS can also pose wage garnishment to whatever businesses where you’re working as an independent contractor. Failure to comply with wage garnishment orders can mean costly penalties to you and even to your employer. At particular jurisdictions, your employer would be liable to the full amount of your garnishment judgment. You might also encounter interest, court fees, and legal costs in the middle of wage garnishment. The whole process would clearly cause you headaches, especially when you also need to deal with the IRS.
Take note that the garnishment would remain in effect until the IRS notifies your employer of a wage garnishment release. The method possesses specific rules and forms to govern your payroll calculations. If you are facing multiple garnishments, your tax situation can be more complicated than ever. But yes, just as IRS bank levy, you can take several steps to lessen the effect and help you bounce back from a garnishment situation. It is when getting a wage garnishment release could be very significant to a debtor’s life.
The following information can help you make sure you’re on the right track of getting a wage garnishment release. But, it is still best to seek a tax relief expert’s help to enlighten you on your way.
A Garnishment in Paycheck? What does it mean?
In a nutshell, a wage garnishment could be any legal procedure where your boss or manager withholds a portion of your earnings to pay your owed debts. According to a recent study, an estimated number of 7% of American workers are experiencing wage garnishment every year. It could result from different types of debts, including child support, student loans, and etc. While these debts would require court proceedings, a wage garnishment from IRS tax debts might not need one.
Before the revenue service would proceed to garnish your wages, they must notify your employer of their intention to do so. Through notice letters, your employer would learn your tax situation. These orders are time-sensitive and could enforce a considerable compliance burden. It is by law that your employer permits the IRS to withhold a part of the money from your paycheck to pay off your tax debts. If you’re self-employed, the IRS can take full control of your yearly income
However, you should know that your only disposable earnings could be subject to garnishment. These earnings are the ones left after you subtract legally accepted deductions such as local, federal, and state taxes. It could be one’s salaries, commissions, hourly wages, or bonuses. The IRS can’t deduct insurance and retirement contributions in calculating disposable earnings. However, the employer should exempt tip income to those they can garnish. After such calculations, they can now withhold your income in the payroll process and forward the payment to the IRS.
Could Employers Fire You Due to Garnished Wages?
Here’s a heads up: Your employer cannot merely terminate you because of your garnished wages. It is under federal law’s provisions that protect employees from discipline when it’s a solitary debt. However, there is a limit to this protection, especially if you have multiple wage garnishments. It might still depend on state regulations and employer’s considerations to settle the situation. And of course, it is with your capability to repay debts that can determine whether your employer would decide to fire you or not.
Would You Be Able to Stop A Wage Garnishment?
A wage garnishment order would continue until you already settle your tax liabilities. The IRS can really hurt your bottom line as long as you are facing debts on them. It may be difficult, but know that it’s not impossible to free yourself from wage garnishment. Before it’s settled in full, you can take several options to obtain a release from garnishment. One of the easiest ways to release or stop an IRS wage garnishment is to pay your taxes in full, including penalties and interest.
If you have the means, you can efficiently resolve the problem. But, if not, then you should act immediately to get hold of a wage garnishment release. At this point, you could hire a qualified tax resolution expert to decide the best step you could take to resolve the problem.
What Are The Ways to Get Wage Garnishment Release?
A wage garnishment could take away the income you might have allocated for your family’s needs. It could last for weeks and months, making your current financial situation worse. However, the IRS does provide numerous, justifiable ways for debtors to escape wage garnishment. The basis of the best action is your tax situation. When in doubt, contact an experienced tax relief firm to determine what path would help stop/prevent a garnishment.
Pay your tax debts in one lump sum
You might just have missed communications with the IRS that’s why you get a wage garnishment. Knowing you have the means, you are sure to resolve your tax issue in just a snap. The IRS specifically suggest this way in order for you to avoid even the penalties you’d have for your tax debts.
Make use of Offer in Compromise (OIC)
Negotiating a payment plan that would allow you to pay less than you owe might be the answer to your garnishment problem. You can visit the IRS website and complete the OIC pre-qualifier. If you are eligible, you can reduce the overall amount of your tax debt. The IRS would just require you to file your tax returns and comply with tax payments for five years following.
Enter to an installment agreement
It is possible to get a wage garnishment release if you enter an installment agreement. Once approved, you can pay your tax debt in full for a series of monthly payments. In making this type of request, you should fill out and submit Form 9465. The basis of the payment would be your income so you can pay in a reasonable amount from what you’re earning.
Declare your financial hardship
Demonstrating genuine financial hardship can also be an option in the release of garnishment. Your employer or the IRS may reprieve your situation at this point. If you prove that paying debts could cause financial difficulties to you and your family, then you’re in good terms with the IRS. Bank statements and paycheck stubs might be your proofs to appeal. The step couldn’t guarantee a total wage garnishment release but can get you enough time to settle your financials.
Just like a bank levy, you can get out of wage garnishment through filing a bankruptcy. While bankruptcy cannot resolve your tax debts, the IRS cannot simply take collection actions against you. This may not be the best option, but it still an opportunity to consider for temporary tax relief.
How Would IRS Wage Garnishment Affect Your Credit?
If you’re wondering if an IRS wage garnishment can impact your credit score, the answer is no. It can be good news not until you consider the financial hardship it can cause you that might hurt your credit score eventually. For instance, you are in the middle of the garnishment case, and you have a hard time to pay your car payments or your credit card bill. It is where wage garnishment could affect your credit report. Your credit score might even get lower and lower as long as you’re facing the burden of wage garnishment.
Is IRS Garnishing Your Wages? Call Us!
Having your wages garnished is a complicated and nerve-wracking experience. So, ensure you’re thriving having the right decision and help on hand. The support of a tax resolution firm is always a keen solution to consider. With tax resolution experts, you can figure out and pick which payment method or agreement is best for you. Experienced tax professionals can leverage your tax situation while protecting your rights. Platinum Tax Defenders believe that debt lawsuits should not end to having your wages garnished. For excellent tax resolution services, you can trust us to make your tax relief possible. Call us for a free consultation so we can identify the right solution for your needs!