A wage levy for back taxes shocks many people into the realization of just how serious the IRS is about collecting their money. You may never have imagined that it was even legal for anyone to take such a large percentage of your income, but it is. If you are stressed, wondering how you will survive with the meager earnings you have left, know that there are several ways to change the situation for the better.
Pay
One way, which will absolutely delight the IRS, is to pay your taxes in full. Instead of gradual forced payments, if you have the resources, you can simply write a check covering the balance, mail it off, and regain full rights to your wages. This is not advisable if you are not sure that the amount that the IRS claims that you owe is correct.
Wait
The IRS generally only has a certain period of time to collect back taxes. This provides you with the option of allowing the wage levy to continue while you hope that the collection time soon expires. However, this also may not be a wise idea if you need your wages because the IRS is fully aware of that limit. In most cases, they begin collecting well in advance or they calculate the garnishment so that your debt will be satisfied before their collection rights expire.
Negotiate
The IRS is known for being harsh and unrelenting, hence the large levy that they have on your paycheck. But, sometimes members of the bureau can be merciful and accommodating. This has allowed people with situations like yours to negotiate better garnishment terms. Case officers at the IRS are fully aware that many people cannot endure such hefty levies and they may reduce the percentage. It is usually best, however, if the debtor is not the one hammering out the deal.
Release
The most favorable outcome that you can expect from an IRS wage levy is to have it released. If you can reach this agreement with the IRS, you will regain full control over your wages, and likely be subject to a voluntary payment plan with more favorable terms. Although possible, individuals should not be too optimistic about accomplishing this alone.
What You Shouldn't Do
You may be wondering if there are certain things that you shouldn't do. Absolutely. You should not do anything, until you have contacted a tax attorney. Once your wages are subject to garnishment, any future interaction between you and the IRS needs to be done with the assistance of a legal professional.
