When the IRS owes money, they will get it whether you like it or not. The state or the IRS may try to collect taxes due by withholding wages through your employer for those who owe taxes. Once a wage garnishment is filed, the employer must deduct a certain percentage from each paycheck to give directly to the state or the IRS until taxes are paid in full or an employee release agreement is reached.
Learning about the Internal Revenue Service levy and garnishments on wages
The amount of back wages deducted from state or IRS wages depends on enrollment status and the number of dependents. A person’s income exempt from state or IRS tax can be calculated by adding the standard deduction claimed for taxes and the amount claimed for exemption and dividing by 52. For example, a family of three would only be able to support about $325 per week.
An IRS bail on your wages can damage individuals and their families. There are several tax relief agencies throughout the country that these individuals can turn to for emergency assistance in a wage freeze. You can get your wages exempted or reduced by a certain percentage by hiring a tax attorney, a registered tax agent, or a tax accountant. Individuals may also be eligible for interest and penalty reductions.
Reported federal income taxes not collected by the IRS in 2004 exceeded $200 billion and rose to over $400 billion when unreported income and unfilled tax returns are considered. The IRS has increased its collection activity by more than 26% in the past year alone. It includes about 1.8 million liens, wage freezes, and liens on personal bank accounts, homes, and property. When the IRS challenged a professional tax relief attorney last year, the IRS declared nearly 3.90 million fines null and void.
Individuals seeking to be exempt from wage levies & garnishments hire a professional tax lawyer or licensed tax agent rather than trying to resolve the issues themselves. Tax attorneys and registered tax agents are professionals who understand the complexities involved in the IRS wage lien and understand how to negotiate the best possible deal with the tax authorities. Over 85% of individuals’ offers are rejected by the IRS simply because the average person does not understand the process and forms.
At the end
Finding a tax lawyer can save you a lot of time, money, patience, and headaches and allow people to focus on what matters, like work and family.