The IRS has the right to garnish your wages if you have an unfiled tax return and you owe them money. If this occurs, the IRS will take off funds from your salary or wages regularly to pay down your debt. In a few cases, they might also seize as much as 70% of your income.
It might be challenging to pay other debts once your wages are garnished. The interest and fines that have piled up by the time the IRS starts taking money off your paychecks may also be very high. You may maintain your financial stability by either avoiding wage garnishment or getting it released.
Stopping wage garnishment
There are ways how to stop IRS wage garnishment once it is levied.
Paying off all your tax debts
Your wages are only being garnished by the IRS so that it can collect the debt which can be avoided if you pay off all your tax debts. Paying a lump sum payment to the IRS will be more affordable overall because interest and penalties will continue to accrue throughout this time.
You can set up either a short-term or long-term payment plan, depending on the debt you owe. You get 6 years to repay the entire debt, which makes it manageable if paid in monthly installments.
You may submit forms to the IRS for a negotiation to settle your debt for a lesser amount than what you owe.
Proving financial hardship
If you succeed in proving your financial difficulties to the IRS, you might be released from wage garnishment.
Claiming bankruptcy allows you to start over with a clean financial state and reorganize your current debts, which might stop your wage garnishment.
Hiring a tax professional is the best option when it comes to working with the IRS and dealing with difficult situations like wage garnishment.