Can the IRS Garnish Your Wages? What Florida Taxpayers Need to Know

Finding out you have an outstanding tax bill is stressful enough. When the government begins taking money directly out of your paycheck as a result, it can justifiably cause panic. Wage garnishment, otherwise known as a wage levy, is a collection tool that allows the IRS to seize a portion of your wages to cover back taxes, and it can happen more quickly than most people realize.

Our Florida tax-IRS attorney has decades of experience helping clients in these cases and provides trusted legal guidance when dealing with federal tax officials. We explain what you need to know about wage garnishment and what you can do to prevent it.

When and How the IRS Can Garnish Wages

The Internal Revenue Service (IRS) doesn’t need a court order to garnish your wages. Once the agency determines you owe taxes and you fail to respond to notices, it can take action under federal law.

IRS wage garnishment differs from private debt collection in that it’s more direct and often more difficult to challenge without legal help. Before the garnishment begins, the IRS must send the following:

• Notice and Demand for Payment (usually a CP14 or CP501);
• Final Notice of the Intent to Levy (Letter 1058 or LT11);
• Notice of Your Right to a Hearing.

If you don’t respond within 30 days of the final notice, the IRS can contact your employer and begin garnishing a portion of your wages based on standard IRS exemption tables. Unfortunately, while the Florida Statutes set limits on how much of a resident’s wages can be garnished in different situations, federal tax debts are not subject to the same limits.

How To Stop or Prevent IRS Wage Garnishment

Fortunately, if you face wage garnishment in Florida due to IRS tax debts, you have options, but time is critical. Once the IRS starts garnishing your earnings, it continues dipping into your paycheck until the tax debt is paid or you make other arrangements. If you receive a levy notice, act quickly and take these steps:

• Within 30 days of your final notice, request a Collection Due Process Hearing;
• Negotiate a payment plan or, to reduce the debt, attempt an Offer in Compromise;
• If you suffer financial hardship, apply for “Currently Not Collectible” status;
• Challenge the debt if you believe the IRS made an error.

The IRS encourages taxpayers to resolve issues before garnishment begins, but navigating the system can be daunting. To protect your income and negotiate a workable solution, get professional legal help.

Contact Ronald Cutler, P.A. To Protect Your Income and Resolve IRS Disputes

If you receive notice of an IRS wage garnishment or suspect you might, it is important to act quickly. As a CPA and former FBI Special Agent investigating tax cases, Ronald Cutler has over five decades of experience helping Florida residents stop wage levies and resolve tax debts. To protect your income and resolve IRS disputes, call or contact our office online. Request a consultation today with our Florida tax-IRS attorney.

Sources:

irs.gov/businesses/small-businesses-self-employed/information-about-wage-levies

leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0200-0299/0222/Sections/0222.11.html

irs.gov/payments/offer-in-compromise