Wage Garnishment
Wage garnishment occurs when an employer is required to withhold employee earnings for the payment of a debt. When the IRS or state has failed repeatedly to collect back taxes, they begin to seize assets, which may include bank accounts and garnished wages. This process is called a “levy.” When the IRS attaches wages, it’s termed a “wage garnishment” and is sometimes referred to as "garnished wages." After providing either a ten, thirty, or sixty-day notice through certified mail, they are legally allowed to seize bank accounts, demand payment from accounts receivable, take control of property for auction, and assume title on vehicles. Virtually anything of value can be seized to satisfy the outstanding debt. This includes wage garnishment.
Garnished Wages Can Be Devastating
Levies and wage garnishments are the most crippling and humiliating of all collection tactics. Both levies and garnished wages are designed to force taxpayers into willful compliance. Thankfully, our KEL Attorneys' legal team has years of experience lifting levies and wage garnishments quickly and painlessly, and is fluent in all aspects of the IRS restructuring and reform act of 1998. Depending upon the type and severity, it usually takes only 2-10 business days for us to successfully lift a levy or wage garnishment. If a bank account has been levied, we are usually able to revert up to 95% of what was taken back into the account.
How Does The IRS Garnish Wages?
If a person has intentionally or unintentionally not paid his or her taxes, the IRS will eventually begin to send notices of its intent to garnish wages. Before moving forward with wage garnishment, the IRS will provide the taxpayer adequate time to cure the debt by paying the amount owed or by arranging to make payments. If you fail to contact the IRS to make payment arrangements, the IRS will proceed to garnish wages approximately 30 days following its final notice to you. (Be forewarned that the IRS has and legally can take garnished wages of up to 25% of your earnings.) The IRS is required to obtain a court order to garnish wages. Your employer will receive a copy of the court order which grants the wage garnishment and is legally required to garnish wages from your earnings and deliver them to the IRS.
How Long Will Garnished Wages Be Collected?
Garnished wages will continue to be deducted from your earnings until the tax debt has been paid in full. The law states that no more than 25% of your earnings may be attached as garnished wages. There are, however, some exceptions to this rule.
Can My Employer Fire Me Because Of Garnished Wages?
Absolutely not! The law provides that an employer may not terminate an employee strictly because the IRS proceeds to garnish wages. There are legal repercussions for employers who terminate an employee solely on the basis of garnished wages.
With Regard To Garnished Wages Or An IRS Levy, What Should I Be Considering?
It goes without saying that you should consider all aspects of the IRS's collection practices as they relate to the IRS's decision to garnish wages or levy assets. You should take into consideration all of your monetary holdings as they relate to garnished wages or a possible levy and how they would be affected in the event of a court order granting garnished wages or a levy. For instance, if any of your funds are held in a Certificate of Deposit, you would be liable for any charges or penalties in the event the IRS levied that account. Also, if you have any tax returns which you have neglected to file, get them filed at once! Keep in mind also that a wage garnishment could mean that you will not have the funds to pay certain critical bills, such as mortgage or vehicle payments.
Can KEL Attorneys Help Me With My Wage Garnishment?
You bet we can! It is important to understand that when the IRS sends a Notice of Intent that informs you of its decision to garnish wages, you should immediately seek legal counsel to assist with your wage garnishment matter. The IRS can garnish wages as soon as it obtains a court order so, If you find that the IRS will garnish wages from your earnings, it is imperative that you contact legal counsel quickly.
KEL Attorneys has been practicing tax law for over a decade. If you think that we cannot represent you because you live in a state where we do not have an office that is incorrect. Garnished wages due to a tax debt would be a tax law matter which is governed by federal law and, as such, we have successfully represented clients across the United States.
In addition to longevity in the practice of law, we will provide a team of experienced and knowledgeable tax attorneys to answer your questions about garnished wages and to assist you with your wage garnishment matter.
KEL Attorneys prides itself on being up-to-date on current tax law cases and revisions to tax law which impact wage garnishment matters. In fact, we are often contacted by news media to provide legal opinions on current legal matters. We have given legal opinions to ABC News, NBC News, Fox News, Fox Business, and CNBC, as well as other media outlets.
Every Thursday at 6 p.m. EST, our managing partner, Matt Englett, Esq., hosts a radio show which addresses legal matters. This radio show is called "Under Oath" and may be found at am540 (WFLA).