The IRS is the most feared collection agency on earth. Unlike other collection agencies, the Internal Revenue Service has the power of the federal government behind it, which means it has tools at its disposal that the others do not. The IRS wont call your home and ask you pretty please for their money back, like other collection agencies. If they want it, they will just take it. Yes, the IRS has the power to take what they think you owe them right out of your paycheck!
Wage garnishment is the most common type of IRS levy. This powerful tool gives them the option of forcing a tax debtors employer to deduct money from their paychecks and then send it to the IRS. The employer must follow these requirements or the IRS will hold them liable for all the tax debts that should have been collected through wage garnishment.
As you might imagine, this is an embarrassing situation for the employee. He looks like a deadbeat in front of his boss, who is forced to pay his employees
tax debt for him. But more than the minor contretemps, wage garnishment can be financially crippling to the taxpayer.
The IRS couldnt care less if you can make your rent or mortgage payments after their deductions. They want what you owe and they want it as soon as possible. Once a wage garnishment notice has been filed with your employer, the IRS is free to collect a large percentage of your total paycheck, usually between 30-75 percent. They dont care how the lower income will affect you. The IRS doesnt pull punches, they play to win!
What can a tax debt relief company do for you?
When an individual is subjected to
wage garnishment, his problems with the IRS are probably quite severe. The deductions will stay in effect until the tax debt has been fully paid or the IRS agrees to stop or modify the wage garnishment. If you have been threatened with an IRS levy, it is important to contact an experienced tax consultant as soon as possible.
There is nothing an IRS agent loves more than dealing directly with the taxpayer, because he knows that most taxpayers dont know the law. Some debtors get themselves into even deeper trouble by unknowingly revealing incriminating evidence when they deal directly with the IRS.
A tax consultant will handle all of your communications with the worlds most feared collection agency. They will review your case and if they feel that it is warranted, they will file an IRS collection appeal on your behalf, which may permanently release you from tax garnishment.
At the very least, your representative will try to negotiate more reasonable terms. As we mentioned, the IRS can take as much as three-quarters of your pay check! Few families can live on that. A talented tax consultant may be able to reduce wage garnishment and stop IRS harassment.
