IRS Wage Levy (Garnishment)

An IRS wage levy, or garnishment, is where a third party, the garnishee, is ordered by a court to pay money on behalf the defendant directly to the plaintiff. In other words, a debtor who has defaulted on a loan or has failed to fulfill their tax obligation and is ordered to pay off their debt through a wage garnishment will have their employer making payments on the debtors behalf by taking the money out of the debtors paycheck. IRS wage levy, or wage garnishments, are limited by federal law to 25% of the employees disposable income.

If you have failed to pay you taxes, the IRS may initiate a wage levy once the following requirements have been met:

• The IRS has assessed your taxes and sent a Notice and Demand of Payment
• You have failed or refused to pay the tax after being notified
• The IRS has sent you a Final Notice of Intent to Levy and a Notice of Your Right to a Hearing 30 days before the wage levy

You should also be aware that the IRS only has to send the notice to your last known address. Even if you do not actually receive the notices, the IRS may begin to garnish your wages.

If you are facing an IRS wage levy, or are currently having your wages garnished, call J. Craig Carman, P.C. at (877) 204-7296, to speak with one of our Texas Tax Consulting attorney who will help walk you through you options on how best to deal with you debt problems.