The IRS often resorts to wage garnishment as a means to address outstanding tax debt. Unfortunately, this collection action often occurs at the most inconvenient times, when you are already facing financial strain. Finding the right balance can be challenging, but we have provided a few simple suggestions to help you effectively manage both immediate and long-term IRS issues.
Seek a Garnishment Release
Wage garnishment is an ongoing collection process, not a one-time event. Without taking proactive measures, you may continue to face garnishment for an extended period. If the reduction in your paycheck due to garnishment makes it difficult for you and your family to meet basic needs, it is crucial to halt the collection activity as soon as possible.
Typically, this involves pursuing a garnishment release. The IRS is obligated to suspend collection actions, such as wage garnishment, if it determines that you have fulfilled your tax debt obligations or if it believes that releasing the levy would enable you to better meet your tax payment responsibilities.
Depending on your circumstances, you may be able to argue that wage garnishment is causing undue economic hardship. Alternatively, setting up an installment plan may be your best option for ending garnishment.
Dealing with IRS Refusal
If you have attempted to stop garnishment but the IRS is uncooperative, it may be necessary to explore other solutions. The Collection Appeals Process provides an avenue for reviewing the levy, with a focus on ensuring that all necessary guidelines were followed.
Another possibility is a Collection Due Process (CDP) or Equivalency Hearing. This option becomes available after you have received a final notice from the IRS regarding their intent to levy your property. The hearing centers around exploring the feasibility of alternative arrangements. During the waiting period for the hearing, collection actions such as garnishment will be paused.
If you are currently facing IRS-related difficulties, it is important to address and resolve your issues before your wages are garnished. The Assertive Tax Solutions is here to assist you in finding a prompt and effective solution. Contact us today to learn more about the available options for your situation.
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