The IRS will release your levy/garnishment immediately, once you have entered into simple payment agreements.
If you have unpaid debts—such as a car loan, mortgage, or credit card balance—failing to pay on time can lead to serious consequences. One of the most stressful is an IRS wage garnishment, where the IRS legally takes a portion of your paycheck to satisfy back taxes.
Below you’ll learn what wage garnishment is, why it happens, and the steps you can take to stop it.
A wage garnishment occurs when the IRS directs your employer to withhold part of your wages to repay tax debt. Garnishment can also result from unpaid child support, student loans, or other federal, state, or local taxes. Unlike private creditors, the IRS doesn’t need a court order to begin this process.
If you ignore IRS notices and leave tax debt unresolved, the government can issue a federal tax levy and garnish your income. You will receive multiple warnings and a final notice before garnishment begins, giving you an opportunity to respond, negotiate, or pay the debt in full.
Pay the Tax Debt in Full: Paying the entire balance, including interest and penalties, immediately stops the garnishment.
Set Up an Installment Agreement: Make manageable monthly payments—typically over up to 72 months—until the balance is paid off.
Negotiate an Offer in Compromise: Settle your tax debt for less than the full amount if you qualify.
Claim Financial Hardship: Request “Currently Not Collectible” status if paying would prevent you from covering basic living expenses. This pauses IRS collection, though interest and penalties continue to accrue.
Declare Bankruptcy: Filing can trigger an automatic stay that halts garnishments while a bankruptcy court reviews whether your tax debt can be discharged.
Seek Professional Help: A tax-relief specialist can evaluate your situation, negotiate with the IRS, and guide you to the best resolution.
Don’t wait until more of your paycheck is taken. Our experienced tax professionals can help you explore every option, from installment plans to offers in compromise, and work with the IRS on your behalf. Schedule a consultation today to protect your income and regain financial control.
