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Ronald Cutler, P.A. Ronald Cutler P.A.
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Miami IRS Wage Levies Attorney

The IRS uses a number of different methods when it comes to collecting unpaid taxes, one of which is to issue a wage levy. Wage levies are a form of collection tool that allows the IRS to legally seize a person’s wages by garnishing his or her paycheck in order to resolve an outstanding tax debt. These types of levies can make it difficult for taxpayers to meet their other obligations, like paying bills. Fortunately, it is possible to have the levy released without paying off the entire tax debt. To learn more about whether your own levy can be released or for help negotiating an agreement with the IRS, please contact a Miami IRS wage levies attorney who can evaluate your case and explain your legal options.

Issuing a Wage Levy

When the IRS issues a levy on a taxpayer’s wages to pay a debt, it takes a portion of that individual’s paycheck every pay period until:

  • The taxpayer makes arrangements with the agency to pay off the remaining debt;
  • The taxpayer pays the entire amount of overdue taxes; or
  • The IRS releases the levy.

Fortunately for those who are having their wages levied, part of their paycheck could be exempt from the seizure, the amount of which depends on:

  • The standard deduction; and
  • An amount that is calculated based on the number of dependents claimed by the taxpayer.

Those who have other sources of income, however, could have their exemptions applied to those payments and so might continue to have 100 percent of their income from the other employer levied by the IRS.

Avoiding a Levy

Wage levies can create a significant financial burden for taxpayers. Fortunately, it is possible for a person to avoid the levying of his or her wages by:

  • Paying all tax debt when due;
  • Paying as much as possible and working with the IRS to resolve the balance; or
  • Setting up a payment plan or settling a tax debt for less than the full amount.

Taxpayers who fail to respond to billing notices or who don’t enter into negotiations with the IRS risk having a levy placed on their property and even on their wages.

Releasing a Levy

Releasing a wage levy when it has already been issued can be difficult, but it is possible if a person can:

  • Resolve all of his or her tax liabilities;
  • Prove that the period for collection ended before the levy was issued;
  • Demonstrate that releasing the levy would help the individual pay his or her taxes;
  • Enter into an Installment Agreement, where the terms of the arrangement don’t allow for the continuation of the wage levy; or
  • Prove that the levy creates an economic hardship, which means that a taxpayer cannot meet his or her basic living expenses.

However, just because a person’s levy is released does not mean that he or she is no longer responsible for the unpaid balance. Instead, taxpayers who still find themselves in debt to the IRS must make arrangements with the agency to resolve the debt, or risk the reissuing of a wage levy.

Schedule a One-on-One Consultation with a Miami Tax Attorney

To speak with an experienced Miami tax lawyer about the best ways to avoid or release a wage levy, please call Ronald Cutler, P.A. at 386-490-9949 today.

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