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How to Stop a Tax Levy on Your Paycheck

How to Stop a Tax Levy on Your Paycheck

You can generally stop an IRS levy on your paycheck before it starts by paying your full balance due or negotiating a payment plan. If the IRS is already threatening to levy your wages, you may need to request a Collection Due Process (CDP) hearing.

Collection Due Process Hearing

The CDP hearing is your last chance to avoid many enforced collection actions, such as wage garnishments and bank account levies. If you weren’t taking the IRS seriously before, a CDP notice should get your attention.

You have 30 days from the date of the CDP notice to request a hearing. If you don’t take action, the IRS will move forward with the levy.

If you get a Notice of Intent to Levy, contact a tax attorney immediately. There are a number of ways to avoid the levy or delay it, but you have to take action while you still have the right to request a CDP hearing.

Once a wage levy is initiated, it will take a portion of your paycheck on a recurring basis.

Stopping an Existing Wage Levy

If your wages are already being garnished by the IRS, there’s still hope. You’ll need to either negotiate an installment agreement or use another tax resolution strategy to get the IRS to release the levy.

Installment agreements require you to make monthly payments to the IRS. You’ll also need to stay in tax compliance for the duration of your repayment period, and the IRS will seize your tax refund checks and apply them towards your balance.

If you are suffering from a financial hardship, you may have other options, such as currently not collectible status or an Offer in Compromise. Your best option will depend on your financial situation and other personal factors.

Receive Your Full Paycheck Again

Wage levies are enforced collection actions that are not customized to your individual situation. You are generally better off coming to an agreement with the IRS and finding a solution that’s designed to meet your needs.

Regardless of what your financial situation is, a tax attorney can help you find a tax debt relief option that works for you. Request a consultation to learn more and find a way to start receiving your full paycheck again.

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.