Wage garnishment: two words that can strike fear in the heart of any hard-working American. For those who are already struggling to make ends meet, having your wages garnished can be even more devastating.
Luckily, there are ways to circumvent these issues and get your financial health back on track. But what exactly is wage garnishment?
Wage garnishment is a legal process by which a creditor or government agency can collect any money you owe directly from your paycheck. For most Boise residents, the agency in question will either be the IRS or the Idaho State Tax Commission.
If you have unpaid taxes, these groups can legally deduct a portion of what you owe from every paycheck — before you even receive it — until your total debt is repaid. But at Instant Tax Solutions, we know that even that small deduction can quickly add up and bring many people to the brink of financial collapse.
That’s why we’re here to help. Our Boise tax relief lawyers can help you work with the IRS to find a repayment plan or solution that works best for you.
So call (888) 485-8109 to schedule a no-obligation consultation to discuss your current situation with an experienced tax relief professional near you.
Get Boise IRS Wage Garnishment Help
A wage garnishment (called a “wage levy” by the IRS) is, at its core, a debt collection process. It ultimately strives to ensure that creditors are paid what they are owed, even if it means snatching up a portion of the debtor’s income.
In the case of government agencies, like the Internal Revenue Service (IRS) or the Idaho State Tax Commission, wage garnishments are employed to recoup unpaid taxes or other government debts. For private creditors, it may be used to recover outstanding loans, credit card debts, or court-ordered judgments.
The wage garnishment process typically begins with a court order or a legal notice served to your employer, directing them to withhold a portion of your wages. However, The IRS can garnish your wages without obtaining a court order.
Instead, the IRS will send a series of notices to inform you about your outstanding tax debt. These notices will outline the amount owed, penalties, and interest and provide instructions on how to address the debt.
It’s crucial not to ignore these notices.
Then, before wage garnishment can commence, the IRS is required by law to send a Notice of Intent to Garnish (often referred to as a CP 297) to your last known address. This notice provides a final opportunity to resolve the tax debt voluntarily.
From there, if you still have not responded, the IRS will move forward with a wage levy.
How Much of My Wage Will the IRS Seize?
A portion of your wages may be safeguarded from the levy, and this exempted sum will be paid to you. The exempted amount will be determined by two key factors: the standard deduction and an ‘amount determined.’
This ‘amount determined’ calculation will partially hinge on the number of dependents you can claim in the tax year the levy is initiated. The IRS will provide guidance on this calculation by sending Publication 1494 along with the levy notice to your employer.
This publication outlines how your employer should calculate the exempt portion.
Your employer will also give you a Statement of Dependents and Filing Status form to fill out and return within three days. If you fail to return the statement within this timeframe, the exempt amount will be calculated as if you were married filing separately with no dependents (i.e., zero exemptions).
Worse, if you have additional income streams, the IRS may allocate the exemptions to those income sources and proceed to levy nearly 100% of the income you’re earning from this specific employer.
If you’ve received any notice regarding the possibility of wage garnishment, we suggest you reach out to our team immediately. Whether it’s a letter simply stating that you still owe money on your last return or a full-on Publication 1494, don’t hesitate to reach out to our team today to make sure you’re preparing the best path forward.
Wage Garnishment Release vs. Removal
As soon as you realize your wages are being garnished, you’re going to want to escape the situation. But here, it’s important to realize that there are two paths to go down, each with several different programs and solutions to choose from.
What Is Wage Garnishment Release?
A Wage Garnishment Release will signify a temporary suspension of the wage garnishment. In most situations, this is typically granted to provide you with an opportunity to negotiate a resolution with the IRS.
To request a release, you typically need to demonstrate financial hardship or show that the garnishment would cause you significant economic distress. Keep in mind that as a temporary solution, a release will not result in your tax debt being forgiven.
What Is Wage Garnishment Removal?
Removal, on the other hand, means putting an end to the garnishment entirely. This can happen once you’ve successfully paid off your tax debt, entered into an installment agreement, or reached an Offer in Compromise with the IRS.
How to Request an IRS Wage Garnishment Release in Boise
Before you request a wage garnishment release, it’s important to familiarize yourself with the IRS’s collection process and available solutions. Some of the most popular options that will be available to you include:
- Financial Hardship: If the levy, specifically, is creating an unreasonable financial hardship, then you’ll want to contact the IRS immediately to explain your financial situation. The levy may be released if it is creating an immediate economic hardship, which the IRS defines as a situation where the “levy prevents you from meeting basic, reasonable living expenses.”
- Currently Not Collectible (CNC): If paying your tax debt, generally, would create serious financial hardship, the IRS may temporarily classify your account as ‘Currently Not Collectible.’ This will suspend all collection actions (including wage garnishment), but the status will be temporary, and your tax debt will not be forgiven or canceled. Additionally, your tax debt will continue to accrue interest and penalties, and the IRS can reinstate its collection efforts at any time.
Once you have determined the right path forward, you’ll want to reach out to the IRS immediately to explain your financial situation. Make sure to collect and provide all of the necessary documentation and complete all of the required paperwork promptly.
How to Request an IRS Wage Garnishment Removal in Boise
While wage garnishment release may provide temporary respite, wage garnishment removal will offer a more enduring solution. Removal means permanently halting the garnishment and is typically achieved when you’ve successfully paid off your tax debt.
That said, we know that paying off your debt in one fell swoop is rarely possible, which is why we would suggest considering one of the following programs:
Innocent Spouse Relief
If your tax debt resulted from your spouse’s actions or misreporting, you may qualify for Innocent Spouse Relief. This relief option can absolve you of the tax liability and lead to the removal of the garnishment.
Offer in Compromise (OIC)
If you absolutely cannot pay the full amount, an offer in compromise can allow you to negotiate a reduced settlement amount. That said, it will be up to the IRS to decide whether they want to accept your offer or decide that you can feasibly pay more than what you’ve outlined.
You will also be expected to pay the offered amount in one lump sum or in a series of quick installments, based on what you propose in your request.
Payment Plans
Qualifying applicants can set up an installment agreement with the IRS to pay off their tax debt over time. This will allow you to break your full debt out into manageable monthly payments.
If you contact the IRS, you may need to negotiate with them directly to establish the base amount for your payments. However, if you contact our team, we can deal with the IRS and work with you and your family to ensure we’re calculating a reasonable amount that you can afford going forward.
Installment Agreement Modification
Similarly, if you already have an installment agreement in place but are struggling to make payments due to the garnishment, you may want to consider modifying the agreement to make the payments more manageable.
Get IRS Wage Garnishment Help Today
No matter how intimidating your total tax debt may seem, we can help you break it down into an actionable path forward. At Instant Tax Solutions, we’ve seen it all, and we’re here to help fight for you and your family so you can make sure that you’re able to provide for your loved ones — no matter how much you owe.
Contact our team today to get help with any type of wage garnishment. We can help you decide whether a temporary release is all you need at the moment or get you on track for a complete wage garnishment removal.
So, no matter your situation, make sure to reach out to our team today. New clients can call (888) 485-8109 or contact us online to schedule a no-obligation consultation to discuss your current situation with an experienced tax relief professional near you.
