What happens to those taxpayers who owe money to the IRS but cannot afford to reimburse or defer the liability via an offer in compromise, payment extension plan, or collectable status? Well, they have to witness a levy on their assets and income. Wage garnishment is perhaps the most common form of levy. The IRS has increased the number of issued wage levies since 2018. 

The following write-up specifies some things you must consider about IRS wage garnishments. Go through them, and you may find a way to get released.

  • The IRS is Aware of All Your Income Sources

According to the best tax attorney in San Diego, CA, if the IRS plans to come after you, it has probably found all about your income sources. It gains such information from the employers and the previous tax year's returns, Form 1099 and W-2.

  • The IRS Send Multiple Notices

The IRS sends several notices before issuing wage garnishment. So you get multiple opportunities over multiple months to repay or opt for an alternative. The IRS sends a final notice that specifies their intent of levying and your right to a hearing. Taxpayers can request a proposed levy and a hearing within a month of the final notice.

  • The Garnishment Remain In Place Until Released

The IRS will not take all of your wages. Part of your wage is exempted based on the number of your dependants and the general deduction method. Other incomes are also set aside, such as certain annuities, pension payments, and money necessary for supporting minor children.

  • You May Ask for Release from the IRS

You may request fast release from wage garnishment if you are experiencing financial hardship. You may get a release without any collection agreement if you cannot meet the fundamental living expenses and provide the IRS with proof of your struggles. This process can take a lot of time.

  • The IRS Loves Christmas

A reputed Beverly hills tax lawyer said the IRS does not garnish wages in the last few weeks of December. This may seem quite friendly, but there are various hidden motives. The IRS lacks the resources to issue garnishments or arrange collection agreements during Christmas. Most IRS employees generally go on vacation. However, they may undertake other actions.

  • A Filing Agreement is Essential for Levy Release

You must file your tax returns if you want a release from the wage garnishment. Generally, the IRS does not finalize the release when taxpayers fail to file past returns. They check the last six years' reports.

The IRS sometimes helps users go for an extension if they can show that their filings will bring in refunds.

Practising prevention helps to the greatest extent. The taxpayers subject to other kinds of levies – social security, accounts receivable for 1099 contractor, bank, etc. – must also keep this in mind. If you need assistance creating a strategy that can address most tax issues seamlessly, please seek help from a professional San Francisco tax attorney. They provide access to various IRS collection alternatives. Choose as per your requirements.