If the IRS decides to levy your assets or garnish your wages, it can be embarrassing to have your employer garnish your wages. When facing pressure from the IRS, the last thing you want to think about is losing your job. Fortunately, the Consumer Credit Protection Act makes it illegal to fire someone because the IRS is garnishing his or her wages. Being fired because of an action by the IRS could cost employers up to $1,000 and imprisonment up to one year. However, you have options. Your tax attorney can help you with levies and wage garnishment long before it gets to that point in the collections process.
Your first step is for you or your tax attorney to communicate with the IRS. Many times, the IRS will garnish wages simply because of poor communication from the taxpayer. Make sure you respond to their requests for communication promptly and prevent problems from escalating. Additionally, if you have not already, you will need to catch up on your returns. If someone cannot possibly afford to have his or her wages garnished, tell the IRS. They need to know. Complete an IRS collection information statement. This tells the IRS how or if you can pay them back. Go over your budget with them so they can tabulate your income and expenses. The IRS can work with you to determine how you can pay them back of if you can pay them back at all. The IRS does accept financial hardship. Their terminology for this is “uncollectable”. If the tax liability is greater than 50,000 dollars and it cannot be repaid in 72 months then the levy release can be expedited.
With communication, proper financial arrangements, and advice from your tax attorney, the IRS can provide you with your release of levy. Have the IRS fax a copy to your employer to stop the wage garnishment. If you have any questions call us at 913-735-4829