Wage garnishment is the second most common enforced collection which is used by the IRS to collect taxes. They receive their tax bill by attaching it to a person’s pay check and each pay period a certain amount of money is taken out of the check total. With wage garnishment, an employer is required to take out a part of a person’s income so that the debt can be paid off. Wage garnishment can also be issued by federal agencies and courts.
Wages that can be garnished is not only a person’s wages but also includes their bonuses, commission, retirement and pension. A notice of wage garnishment is given for each pay period. It’s the garnishees responsibility to keep up with the total amount being deducted from each check and the total amount given to the IRS.
A wage garnishment is a type of a tax levy and certain procedures are followed in order to be released from IRS garnishment. Most people whose wages are being garnished can request an appeal with the Office of Appeals. The grounds for appeal may include some of the following:
1. All wage garnishment and costs have been paid in full.
2. Showing the IRS that this levy is causing financial hardship.
3. Convincing the IRS that the taxes will be paid if the garnishment is released.
4. Before the notice was received, the statute of limitations expired.
5. You are part of an instalment agreement.
6. Showing the IRS that the liability of the property garnished is lower than fair market.
7. Taxpayer did not have the chance to dispute.
8. The IRS has made an error.
9. The taxpayer requests a discussion of the collection.
If a taxpayer is given a tax garnishment release, the account with the IRS with an unpaid tax bill form will be removed and garnishment from wages will also cease.