What is IRS Wage Garnishment?

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At DiLucci CPA Firm, we understand the stress and fear that can accompany dealing with the IRS, especially regarding wage garnishment. In Texas, IRS wage garnishment is a legal process where the IRS can claim a portion of your wages to cover unpaid taxes. The last thing you want is to see a significant chunk of your paycheck being taken before it even hits your bank account. That’s why we’re here to guide you through the process and help you understand your rights and options.


How IRS Wage Garnishment Works in Texas

When the IRS invokes wage garnishment in Texas, it signifies a severe step in their collection process. The procedure commences when the IRS sends a formal notification and a demand for payment. If you fail to heed this notice and don’t negotiate with them or pay your due taxes, the IRS will issue a final notice before proceeding with the garnishment.

Once the garnishment starts, the IRS sends a notice to your employer, who is then legally obligated to withhold a designated portion of your paycheck. This portion is not arbitrary but is calculated based on IRS tables factoring in your filing status, number of dependents, and standard deductions. The result can be a significant reduction in your take-home pay, often pushing taxpayers into a tough financial spot.

It is noteworthy that the IRS is not restricted to just your wages. They have the authority to garnish other sources of income, such as bonuses, commissions, and even your pension, depending on the circumstances. Unlike other creditors, the IRS does not need to secure a court order to initiate wage garnishment; they can proceed based on their administrative powers.


Preventing and Stopping IRS Wage Garnishment

The best way to prevent wage garnishment is to stay on top of your tax obligations. However, we understand that sometimes life gets in the way, and you may be in a difficult financial situation. If you have received a notice of intent to levy from the IRS, it’s crucial to act quickly. Contacting a professional like us at DiLucci CPA Firm can significantly improve your chances of stopping the garnishment before it begins. When faced with the threat of wage garnishment by the IRS, it’s essential to know that there are a variety of paths we can take to prevent this from happening or to stop it if it has already begun. At DiLucci CPA Firm, we have a rich history of helping our clients go through these often turbulent waters and find solutions that work best for their situations:

  1. Setting up a payment plan with the IRS: This agreement allows you to pay off your tax debt in manageable monthly installments, giving you the flexibility and time you need to get your finances back on track. This is an excellent option for many people because it doesn’t just stop wage garnishment; it also helps to alleviate the overall burden of tax debt.
  2. Negotiating an Offer in Compromise (OIC) with the IRS: An OIC is a settlement where the IRS agrees to accept less than the total amount of the tax debt owed. This can be a lifesaver for those struggling with significant tax debt. However, it’s important to note that not everyone qualifies for an OIC, and the process can be complicated. That’s where our expertise comes in; we can guide you through the necessary steps and help you present a compelling case to the IRS.
  3. Proving your circumstances to the IRS to prevent wage garnishment: This involves demonstrating to the IRS that garnishing your wages would cause you undue financial hardship and prevent you from meeting your basic living expenses.


Long-Term Solutions for Tax Relief in Texas

At DiLucci CPA Firm, we not only help you stop IRS wage garnishment but also provide solutions to keep the IRS out of your life forever. As a full-service accounting firm, we offer various services, including tax return and planning services, tax resolution services, and bookkeeping. Our goal is to financially empower our clients and foster long-term business growth by providing high-quality, cost-efficient, and value-added tax, accounting, and bookkeeping services.


Contact Us, DiLucci CPA Firm Today

If you are facing IRS wage garnishment in Texas or any other tax, accounting, or IRS matter, don’t hesitate to contact us at DiLucci CPA Firm. Our family firm, founded in 2005, has been helping individuals and business owners like you navigate their financial challenges and achieve peace of mind. Call us at Di Lucci CPA Firm to speak with a lawyer in Texas at  (972) 444-9934, or contact us online to schedule a consultation to help guide you through your Tax, Accounting, or IRS matter.