A wage garnishment is a requirement by the employer to withhold money from employees' paychecks to pay for a debt that they owe. The employer is required to send the amount withheld from the employees' check directly to the institution to which the employees owe money.
When the IRS or a State fail to collect on back taxes, they will begin to seize assets. If the letters received by the taxpayers are ignored, the IRS and State will continue to the next phase of the tax-collection procedures: the levy. They have the legal authority to seize bank accounts, demand payments from employers, demand payments from accounts receivables, take control of the taxpayer's property to auction, assume title on vehicles. They can seize anything of value and sell it to satisfy the taxpayer's outstanding tax obligations.
Wage garnishments are a form of tax levy and it will continue until the debt is paid in full or until tax resolution steps have been taken. Contacting the IRS or the State and agree to payment arrangements generally results in the wage garnishment to stop. This is a very common tax resolution practice.
If you would like to know your options, please contact us for a free consultation. Whether you retain our services or not, you will still have a clearer idea about what you need to do and the IRS' collection process.