Wage levies are continuous, unlike most bank account levies and most other IRS seizures. An IRS wage garnishment will be ongoing until one of the following events takes place:
- Your full balance is paid.
- You make other payment arrangements with the IRS.
- The levy is released for some other reason.
If you owe the IRS tens of thousands of dollars in back taxes, penalties, and interest, it could be years before you get to receive your full paycheck again.
About Wage Levies
Fortunately, the IRS can’t take your entire paycheck. There are exemption amounts that are calculated based on your filing status and number of dependents.
Still, the amount you’re left with may be hard to live off of, and there’s nothing to stop the IRS from pursuing other collection methods as well.
If you do get a bonus or a big commission check, the IRS has the right to take 100% of these amounts.
Getting the Levy Released
If you don’t do anything, the levy will continue until your full balance is paid, which could months or years. You do have other options to remove the levy.
First, you can negotiate an installment agreement with the IRS. You’ll still have to make monthly payments, but you’ll have more flexibility coming to terms that work for your financial situations. If you get a bonus check, you’ll get to decide whether to put it towards your tax debt or use it for some other purpose.
The levy should also be released if the collections period has ended. The IRS generally has ten years to collect tax debt, but this period can be extended in some situations.
If you are experiencing an economic hardship, you may also be able to get the levy released. You may also be able to apply for currently not collectible status to avoid other collections.
Other tax resolution strategies may also be at your disposal, such as innocent spouse relief, penalty abatement, or an Offer in Compromise. You should talk to a tax attorney to see if these options apply to your case.
The best way to handle an IRS wage garnishment is to avoid it in the first place, so act quickly if you receive a Notice of Intent to Levy. Consult a tax attorney to prevent an IRS wage levy or to get one released.
Get help with IRS tax debt problems by calling The Gartzman Law Firm at 770-939-7710. We can help stop bank account levies and wage garnishments before they happen and find a creative solution to your tax problems.