Welcome back to IRS Wage Garnishment 101!
We’re thankful you joined us for the second installment in our two-part series covering all things IRS wage garnishments.
Wage garnishments are every bit as intimidating as tax liens and have the potential to severely impact every aspect of your life—from your trips to the grocery store, to your vacation potential, your savings, and more.
Wage garnishments are serious business, but we don’t think they should ruin your life. That’s why we’re giving you a full rundown of what you can expect from a wage garnishment and how to stop yours in its tracks.
In part two of our series, we’re answering an important question: How do I stop an IRS wage garnishment?
We’ll be walking you through unreliable tactics for getting rid of a wage garnishment before going over four ways to avoid or stop your wage garnishment with the IRS.
(If you’re unsure what an IRS wage garnishment is or what happens during a wage garnishment, take a moment and review part one of our series, “What Is an IRS Wage Garnishment?”
Despite their ineffectiveness, a number of dubious methods for “resolving” wage garnishments still persist. We need to clear them up.
If your employer is the one sending a portion of your pay to the IRS, then couldn’t you just find a new employer? It’s not that simple.
Many who find their wages being levied—by anyone, not just the IRS—think that they can dodge the garnishment by switching jobs. But this will only delay your garnishment, not avoid it. For most wage garnishments, you’re legally required to inform the court of your job change. On top of that, you’ll file new tax paperwork when you start your new job, and the IRS will be quick to follow the trail.
Some folks attempt to hide from a wage garnishment entirely. If you’re not making any money, then the IRS can’t get their hands on it, right?
Think seriously before quitting your job to avoid a wage garnishment. Burying your head in the sand won’t change the reality above ground; you’ll still owe the IRS money. Except by quitting your job, you’ll not only have lost a primary income source, but you may also have forced the IRS to take other drastic actions to settle your debt.
There are a handful of proven methods for getting out from under your IRS wage garnishment—once and for all. Let’s cover the top four.
The surest way to stop your wage garnishment—or avoid the process entirely—is to pay your taxes and handle your tax debts in a timely manner. That means staying current on your tax return filing and paying your tax debts before they balloon into something unmanageable.
However, we understand that sometimes tax debt can get out of hand before you realize it. If that’s the case, your best way to avoid the IRS levying your wages is to be responsive with all IRS communications and take earnest steps to pay your debts.
Pro Tip: A professional tax mediation company can help you review your previous returns and finances—which may lower your tax bill.
For some smaller tax debts, it may be perfectly within your budget to cover the balance and move on with your life. However, tax debts of thousands, tens of thousands, or more may simply not be doable in one lump sum.
When you respond to communications and notices from the IRS, you may be in a position to work out an installment agreement—which means you make regular payments over time until your debt is paid.
At first, this may not seem all that different than having your wages garnished. But think about it. Considering you’ll be in repayment one way or another, wouldn’t you prefer to receive your full paycheck and direct some of that toward another bill—rather than having the IRS decide how much of your paycheck you’ll get in the first place?
Pro Tip: Enlist a tax relief company to help you lock down an installment agreement that works for all parties involved.
As we’ve discussed, a wage garnishment can put you and your family in a serious financial bind or at least significantly change your standard of living. However, for some taxpayers, a wage garnishment can push you over a financial cliff to the point you simply cannot make ends meet.
In these cases, you may be able to qualify for financial hardship. After you get current with all your past due tax returns and gather your financial information to verify your income, expenses, and assets, the IRS will review your information. If you qualify, the IRS will put your account in currently not collectible (CNC) status.
While this can be a big relief, financial hardship isn’t a permanent stoppage on your wage garnishment—it just means the IRS won’t be actively collecting your tax debt for a period of time. You will still owe the IRS money, you will still accrue interest on that debt, and you may still have a federal tax lien on your credit report.
Pro Tip: Give yourself a chance of eliminating—not postponing—your tax debt by finding other solutions by reaching out to a tax firm.
The best way to stop an IRS wage garnishment isn’t by ignoring it, avoiding it, or postponing it. The best way to stop an IRS wage garnishment before it even starts is to stand there and face it.
And the smartest way to face it is with a team at your side.
Now that you have the knowledge about IRS wage garnishments that you need, it’s time to fight back and beat your tax debt once and for all. Your debt isn’t going to disappear overnight, but getting in touch with a smart, professional tax mediation and tax relief company like StopIRSDebt.com can offer you the support and expertise you need.
We’re always here for you. Remember that.
Don’t forget to check out part one of our IRS Wage Garnishments 101 series, “What Happens During an IRS Wage Garnishment?”
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