What Is Wage Garnishment Release?
- October 23, 2019
- Posted by: asal
- Category: Tax Resolution
Think of a situation where you have an outstanding tax debt and need to pay a certain amount to the IRS. In such a situation, the IRS can come in at any time and take any percent of your monthly paycheck. This is what one considers as wage garnishment. Legally, it is possible for the IRS to take any amount of your income in order for it to pay off the sum that you owe it. In order to take this step, the IRS will contact your employer directly and then request them to send a portion to the IRS. In fact, the employer, too, cannot refuse because it is needed by law.
Last but not least, the IRS also has the authority to take control of your social security income. It can be quite stressful and confusing for you. This is why you must know how it works, how much the IRS can take from your wages, and everything else related to it. Nothing other than tax resolution experts can help you to understand this any better.
How does wage garnishment work?
There is a systematic procedure that one can understand quite easily. Firstly, when the IRS thinks of wage garnishment regarding any tax debt that you owe, it will send you a written letter. This is a notification regarding your debt. The letter has details such as the amount that you owe IRS, the penalties that may apply to you, and the interest that you need to pay as part of the debt. The letter is important because, along with these details, it specifies a due date. In case you fail to pay up by this date, there is a second notice that is issued. It is called the ‘Final Notice of Intent to Levy.’ The amount then needs to be paid off within 30 days, and in case you fail again, IRS has the legal right to garnish your wages.
Please note that even if your earnings are garnished for tax debts, it is still considered to be taxable income. This is when it is imperative to take the help of a tax resolution company.
How much can be garnished from your wages?
As stated earlier, the IRS has the legal right to garnish your wages. This means that there will not be a need for any formal court procedure. Once it has notified you, the procedure for wage garnishment may start. In comparison to any regular creditor, it can garnish more of your earnings. The rule is that it must just leave you with enough amount that you will need to pay off your basic living expenses. In fact, it can be seventy percent or more of the monthly income. IRS can seize anything of the same value that you owe them. Legally, it can do any of the following:
- Seize all of your bank accounts that have any money in them.
- Contact your employer directly so that the tax amount is deducted right from your salary, and you are paid the remaining amount. The monthly income comes to your account post deduction.
- It can take over any of your property. This property can be both professional and personal. Your vehicles are also included and considered part of your property.
What to do when you get a final wage garnishment notice?
When you receive a final wage garnishment notice, the first thing to do is negotiate. You must negotiate for an installment plan. This will be great because the authority then decides a fixed payment amount per month that suits your needs. In fact, it will also help you to remove your employer from the tax deduction scene if you use tax resolution services. On the other hand, it makes you look professional at work and saves your face. The biggest benefit of negotiating an installment amount is that it may be way lesser than the wage garnishment amount.
It is imperative to take the help of tax resolution services that have a detailed understanding of tax law. This is possible only with experience. Getting into the shackles of IRS and wage garnishment can be very frustrating as well as embarrassing. Your mind stops working in such a situation, and you may feel helpless. It can totally overturn your life in an instant.
What is a wage garnishment release?
Another term related to wage garnishment is wage garnishment release. This means that one has to file a notice with the court with an appeal to stop the wage garnishment proceeding. When you take the help of tax resolution services, you are able to figure out if you are indeed eligible at all for wage garnishment release. The bank evaluates your situation and draws the best tax resolution solution for you. Some of the most important tax relief solutions are as follows:
- There is a possibility to compromise and settle the debt
- There is a chance to get penalties removed by submitting a penalty abatement
- An installment agreement allows you to make monthly payments according to your convenience
- One can also prepare unified tax returns
The most convenient and sought method is the monthly installment plan. The wage garnishment remains in effect until the moment that the IRS notifies your employer about releasing the wage garnishment.
About Platinum Tax Defenders
Platinum Tax Defenders is leading tax resolution services that can help you to settle your IRS tax debt through an offer of compromise. This can go a long way, and you might be able to pay off the debt for a fraction of what you actually owe. Some other services provided by the Platinum Tax Defenders are to settle payroll taxes, tax attorneys, and end wage garnishment and levy. The website offers a chance to get a free consultation. The four steps of tax relief are free consultation, case investigation, tax resolution, and tax relief. It is a full-service tax resolution firm that is based in Los Angeles and has been providing customer satisfaction since 2011. The consequences of unpaid taxes can be major, and the only way to escape it is through tax resolution experts.