No one tells you what to do first when the IRS enforces a collection effort through wage garnishment. Knowing what steps to take to stop the garnishments is crucial to preserving your income.
The IRS exists for one reason and one reason only: to collect owed taxes by US taxpayers for the federal government. That’s it.
To accomplish this goal, the IRS can and often does do everything in its power to enforce collections efforts, even if the amount of the tax owed is contested or inaccurate. One of the ways the IRS enforces back tax collections is by executing a wage garnishment order to the delinquent taxpayer’s employer, which by law that employer must act on.
These garnishments are almost always preceded by a series of written warnings followed by a final letter known as a Notice of Intent to Levy (LT11D). This notice typically includes the amount owed and clear steps for how to pay the balance and avoid the garnishment.
A sample LT11D Notice of Intent to Levy letter from the IRS
So, what can be done to stop the coming garnishments if you receive a letter like this?
At Traxion Tax, all we do is help taxpayers navigate difficult tax situations – situations just like this one. Let’s jump right in and talk about what actions have the highest chances of stopping IRS-ordered wage garnishments once and for all.
Option #1: Submit Payment in Full
This may seem obvious, but the #1 fastest and easiest way to stop IRS wage garnishments is to pay the amount owed, in full, as soon as possible. This can be accomplished online using an IRS-approved payment processor or by paying with check or money order.
If you don’t have the means to pay in full, you can set up a payment plan through the IRS website. Instructions for doing this should be included in the Notice of Intent to Levy letter.
Option #2: Appeal for a Delay of Collection
One alternative to paying the delinquent tax is to request that the collection be delayed. Collection delays are always temporary and are only granted on a case-by-case basis for taxpayers that can show financial hardship.
Delaying an IRS collection may stop the wage garnishments in the near term, but the owed balance will remain assigned to the taxpayer and collections efforts will resume after the period of delay has elapsed.
Option #3: Submit an Offer in Compromise
An Offer in Compromise (or OIC) is an excellent path to consider if you cannot make the full tax payment yet want to appeal to the IRS for a lower total tax bill.
Essentially, an OIC is an offer you make to the IRS to settle the tab for less than what you owe. While the IRS considers your offer, they may halt wage garnishments.
| IMPORTANT: While it is possible to submit an Offer in Compromise on your own, it is highly recommended that you consult with a tax professional.
A tax resolution expert knows what documentation should be included with an OIC so the taxpayer stands the best chances of having their offer accepted. Learn more about getting help with OICs by contacting Traxion Tax today. Call (303) 376-9797 or visit www.traxiontax.com now. |
Option #4: File for Bankruptcy
We had to include this option because it is, after all, a legitimate way to get the IRS to stop garnishing your wages.
Filing for bankruptcy is not a decision to be taken lightly. A bankruptcy has far-reaching financial consequences and can impact your credit worthiness, job prospects, ability to buy a home and even rent a place to live.
It can, however, be a good choice to consider for those without any other recourse.
Option #5: Consult with a Reputable Tax Resolution Firm
We saved this one for last, but it’s actually the smartest move to make when you’re faced with the prospect of having your wages garnished by the IRS.
Regardless of how much you owe in back taxes, there is a unique solution that should take into account your entire financial situation. This is best done with the help of a tax resolution expert who can walk you through all your options, educate you about the next steps, and prepare you for what the IRS will likely do in response.
Peace of mind is a phone call away. The number to use is (303) 376-9797. Pay nothing for a phone consultation, and get clear about what your best next move should be so you can begin breathing easier as soon as possible.
Visit www.traxiontax.com to learn more.