Wage Garnishment – The IRS's collection action on your paycheck

Wage Garnishment

Taxpayer Resources
July 11, 2024•2 min read

Wage Garnishment

Navigating the Tax Jargon: Wage Garnishment Explained

The tax industry has its own complex vocabulary, and terms like wage garnishment, liens, and levies can leave many taxpayers confused. When facing these actions, it’s crucial to understand exactly what’s happening and what options are available to resolve the issue.

What is Wage Garnishment?

Wage garnishment is one of the most common tools the IRS uses when collecting unpaid taxes. Legally, it allows the IRS to take a portion of your wages directly from your paycheck until your tax debt is fully paid. While your employer is required to comply, they cannot fire you solely for having a garnishment.

However, wage garnishment leaves you with less income to live on, potentially making it harder to cover your basic living expenses.

How Can I Resolve Wage Garnishment?

The best way to avoid wage garnishment is to pay off your tax debts on time and in full. However, many taxpayers who face garnishment are unable to pay immediately. Fortunately, there are ways to resolve the issue:

  • Paying in Full: If you can pay the balance in full, this will stop the garnishment right away.

  • Installment Agreements: If paying all at once isn’t feasible, the IRS Fresh Start Program offers Installment Agreements where you can pay a smaller, more manageable monthly amount.

  • Offer in Compromise (OIC): This program allows you to settle your tax debt for less than the full amount owed, but it’s selective and not everyone qualifies.

  • Financial Hardship: If wage garnishment makes it impossible to meet basic living expenses, you may qualify for temporary relief by proving financial hardship. The IRS can halt collections under these circumstances.

How FreshStartTaxRelief Can Help

If you’re facing wage garnishment, it’s important not to face it alone. At FreshStartTaxRelief, we partner with experienced tax professionals who specialize in navigating the IRS Fresh Start Program to help you resolve wage garnishments and other tax-related issues.

Ready for a Fresh Start?

If you want to see if you qualify for a Fresh Start, take our brief survey to get started on your path to financial relief. You don’t have to face wage garnishment or tax debt alone.

FreshStartTaxRelief
Jane Taxman is a seasoned tax professional with over 15 years of experience in helping individuals and businesses navigate complex tax issues. Specializing in tax debt relief and compliance, Jane has a deep understanding of IRS policies and programs, including the Fresh Start Initiative. Her passion for assisting taxpayers in achieving financial stability and her ability to simplify complicated tax concepts make her a trusted advisor and valuable resource. When she's not demystifying taxes, Jane enjoys writing informative articles to empower readers with the knowledge they need to manage their financial responsibilities confidently.

Jane Taxman

Jane Taxman is a seasoned tax professional with over 15 years of experience in helping individuals and businesses navigate complex tax issues. Specializing in tax debt relief and compliance, Jane has a deep understanding of IRS policies and programs, including the Fresh Start Initiative. Her passion for assisting taxpayers in achieving financial stability and her ability to simplify complicated tax concepts make her a trusted advisor and valuable resource. When she's not demystifying taxes, Jane enjoys writing informative articles to empower readers with the knowledge they need to manage their financial responsibilities confidently.

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