Paying taxes is the best way to impact your state's and country's economy positively. Failure to comply, however, results in serious debt, which may cause the internal revenue service (IRS) to penalize you. The government often recovers such a dept through wage garnishment. It is a legal procedure through which a court order instructs an employer to withhold a portion of their employee's earnings to pay their debt, salary, commission, and bonuses subject to this deduction. A wage garnishment goes on until your debt is fully paid. You can prevent or stop it by either paying your debt in full or making a payment arrangement with the IRS. For this option to work, filing old tax returns is mandatory.
Tax garnishment procedure
The law outlines a process the internal revenue service needs to follow before claiming a part of your income to repay their debt. They first have to issue you a written notice before the garnishment, informing you of the amount you owe. This notice will include the penalties and interest the debt has accumulated and the payment deadline. When you fail to comply, the IRS sends you a second notice communicating its intent to levy the tax. It is often thirty days before the garnishment begins. The final notice usually includes a letter informing you of your right to appeal, which you must do within a certain timeframe. Failure to take action during this period allows the IRS to start garnishing your earnings.
Types of tax garnishment solutions
Besides making payment arrangements, you can deal with tax garnishment in several ways.
Paying the debt in full is the best way to eliminate a tax garnishment permanently. After receiving the first notice, devise a means to clear your debt in time. You can also appeal after receiving the second notice when you don't approve of the amount you owe. It is prudent to contact a tax attorney in such a situation; they will help you successfully navigate the lawsuit. When facing significant financial challenges and you cannot pay your tax debt in full, the IRS can make an offer in compromise. It entails reducing the amount you owe them. You'll have to make an application to qualify for this program, although they will stop the wage garnishment as your application awaits approval.
Bankruptcy. It is a legal process that facilitates the payment of a debt when the debtor cannot clear it. This process entails measuring and evaluating the debtor's assets and using them to repay their debt partially. It is often most peoples' last option when facing financial devastation. The IRS can discharge your debt when you declare bankruptcy, leading to a cessation in your wedge garnishment.
Conclusion
Tax garnishment solutions offer relief from financial hardships that result from wage garnishment. Contact an expert to learn more about the available solutions and work with the one that best suits your needs.
Share23 November 2022
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