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Stopping IRS Wage Garnishments & Levies, Tax Attorneys, Katy | Houston, TX
Defending & Resolving IRS Wage Garnishments & Levies in Harris, Fort Bend & Surrounding Counties
Stopping IRS wage garnishments and levies is an essential step for those who are struggling with tax debt. The IRS can seize a significant portion of a taxpayer’s income through IRS wage garnishments, making it difficult to pay for even basic necessities such as housing, food, and medication. Therefore, stopping IRS wage garnishments is almost always a top priority for taxpayers in such situations.
While the IRS will not surprise a taxpayer with an IRS wage garnishment, it’s important to take action immediately upon receiving a notice of past-due taxes or a final notice of intent to levy. The first step is to have an experienced IRS Debt Relief Attorney | Tax Lawyer to contact the IRS and explore all available options and to prevent this matter from getting worse. It’s essential to have an experienced Katy, Houston, TX tax attorney, like those at Nick Davis Law, on your side who can help you navigate the complex process of resolving your IRS tax debt and stopping IRS wage garnishments.
Below we will discuss the various options available for stopping wage garnishments and levies. We will cover short-term fixes, such as making a promise to pay the IRS in full with borrowed funds, as well as long-term solutions, including completing missing tax returns, submitting an offer in compromise, enforcing statutes of limitations on the IRS, and filing for bankruptcy. Different types of tax problems will require different types of solutions, and we will help you determine the best course of action for your specific situation.
We understand that dealing with tax debt and wage garnishments can be overwhelming and stressful, but we are here to help. Our team of experienced tax attorneys | IRS debt Relief Lawyers at Nick Davis Law help individuals resolve their tax debt and regain financial stability. Let us help you stop IRS wage garnishments and levies and get back on track to a secure financial future.
Schedule a Free Case Evaluation with an Experienced IRS Wage Garnishment Lawyer & IRS Tax Attorneys Katy | Houston TX serving Fort Bend, Harris and surrounding Counties.
What are Wage garnishments and levies?
Wage garnishments and levies are two of the most powerful weapons in the IRS’s arsenal for collecting unpaid taxes. A wage garnishment is a legal procedure by which the IRS seizes a taxpayer’s income directly from their employer, while a levy is the actual seizure of a taxpayer’s property to satisfy a tax debt. Both of these actions can have a devastating impact on a taxpayer’s financial well-being, and can even lead to life-and-death situations.
Wage garnishments occur only against W-2 wage earners and are continuous in effect, meaning the IRS does not have to re-issue a wage levy in order to garnish every paycheck of an employee. Self-employed people who earn 1099s can also be levied, but the IRS is required to re-issue a levy notice prior to every single payment of income.
The IRS will not surprise a taxpayer with a wage garnishment or levy. Initially, a taxpayer will receive a notice of past due taxes along with a request for immediate payment. If this notice is ignored and unanswered, a taxpayer will eventually receive a “Final Notice of Intent to Levy.” Usually, after 30 days of the final notice, the IRS will issue a wage levy to a taxpayer’s employer and the garnishment of wages begins.
In order to stop a wage garnishment or levy, it is important to understand the different short-term and long-term solutions available. Short-term solutions may include promising to pay the IRS in full with borrowed funds from family, friends, or other legitimate sources, or being placed on an installment agreement with the IRS. Long-term solutions may include completing missing tax returns, submitting an offer in compromise, enforcing statutes of limitations on the IRS, or filing for bankruptcy.
It is important to take immediate action upon receiving a notice asking for payment of back taxes, or a notice of “intent to levy.” It is always better to have an experienced professional on your side than to ignore the requests and wait for the worst to come. Even if you are currently experiencing an IRS wage levy or levy now, contact a tax attorney so they can resolve your situation quickly and efficiently.
The Impact of Wage Garnishments on Taxpayers?
Wage garnishments are one of the most powerful tools the IRS has in its arsenal, and they can have a profound impact on the lives of taxpayers. When the IRS garnishes your wages, they are taking a portion of your income directly from your paycheck. This means that the money you earn from your hard work is no longer entirely yours, and the impact of this loss can be devastating.
The IRS can take up to 85% of your paycheck through wage garnishments, leaving you with very little left to cover your basic needs, such as food, housing, and medication. For taxpayers who are already struggling to make ends meet, this can push them into a state of financial crisis. In some cases, wage garnishments can even lead to life and death situations.
The effects of wage garnishments are especially dire for those who are self-employed. While the IRS can still levy self-employed individuals, they are required to re-issue a levy notice before every single payment of income. This can create significant disruptions in income and make it even harder to pay the bills.
If you are facing a wage garnishment, it is crucial to act quickly to minimize the damage. The first step is to understand your rights and what options are available to you. Seeking professional help from a tax attorney can be a crucial step in finding the best solution for your specific situation.
Importance of Stopping Wage Garnishments?
When the IRS places a wage garnishment on a taxpayer, it can have devastating consequences. The IRS can seize so much of a taxpayer’s income that they may not be able to afford basic necessities like housing, food, transportation, or medication. This can lead to a significant amount of stress, anxiety, and even depression, which can impact a taxpayer’s mental and physical health.
Stopping a wage garnishment is therefore a top priority for taxpayers who are facing this situation. It can help them avoid the severe financial consequences that come with having their income seized by the IRS. When a wage garnishment is stopped, taxpayers have more control over their financial situation, which can lead to improved mental and physical well-being.
In addition to the personal impact of wage garnishments, they can also have long-term financial consequences. When a taxpayer’s income is garnished, they may not be able to keep up with other bills and financial obligations. This can lead to additional financial problems, such as mounting debt or a damaged credit score. By stopping a wage garnishment, taxpayers can avoid these long-term consequences and begin to take control of their finances.
Overall, stopping a wage garnishment is an essential step for taxpayers who are facing this situation. It can help them avoid the short and long-term financial and personal consequences of having their income seized by the IRS.
Take the first Step
Is the IRS actively seeking to garnish your wages or levy your financial accounts? If so, you need to act immediately and contact our experienced IRS Debt Relief | Tax Attorneys to help stop the IRS Wage Garnishments and collection efforts before it is too late. It is essential to get an understanding on how to address requests and demands of the IRS and develop a plan to move forward both in the short and longterm to lessen the impact. At Nick Davis Law our Katy, Houston Texas IRS Debt Relief | Tax Attorneys are ready to answer your questions and help you develop a strategy to stop the IRS Wage Garnishments and levies.
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Short-Term Solutions for Stopping Wage Garnishments
When it comes to dealing with wage garnishments, time is of the essence. Wage garnishments can have a significant impact on a taxpayer’s personal and financial situation, often leaving them struggling to make ends meet. In such cases, it’s important to act quickly and explore short-term solutions that can help stop the garnishment and ease the immediate financial burden.
These short-term solutions involve working with the IRS to come up with a plan for paying off the debt, whether it’s through borrowed funds from family, friends or other legitimate sources, or through an installment arrangement with the IRS. While these solutions may provide some temporary relief, it’s important to keep in mind that they may not be a long-term fix, and there may be other options worth exploring to resolve the underlying tax issues.
That being said, these short-term solutions can be critical in stopping wage garnishments, allowing taxpayers to focus on developing a more permanent solution that can help them regain control over their financial situation.
Paying the IRS in full with borrowed funds
Paying the IRS in full with borrowed funds is one of the short-term solutions that can stop a wage garnishment. This involves borrowing money from legitimate sources, such as family, friends, or a bank, to pay off the entire amount owed to the IRS.
While borrowing funds can be a difficult decision to make, it can often be the quickest and most efficient way to stop a wage garnishment. This is because the IRS will typically release the wage levy within a few days of receiving the full payment. It’s important to note that interest and penalties will continue to accrue until the debt is paid in full.
If you are considering this option, it’s essential to have a plan to repay the loan as soon as possible. This can help avoid accruing additional interest and penalties on the loan. Borrowing money from a family member or friend can also have personal and emotional implications, so it’s essential to carefully consider the relationship and impact of the decision.
Paying the IRS in full with borrowed funds can be a viable short-term solution for stopping a wage garnishment, but it’s important to consider all options and potential consequences before making a decision.
Entering into an installment agreement with the IRS
An installment agreement with the IRS is a payment plan that allows you to pay your tax debt in smaller, more manageable amounts over time. This can be a good short-term solution for stopping a wage garnishment, as the IRS will typically stop collection efforts while an installment agreement is in place.
To qualify for an installment agreement, you must have filed all of your required tax returns and owe less than $50,000 in combined tax, penalties, and interest. If you owe more than $50,000, you may still be able to set up an installment agreement, but you will need to provide more detailed financial information and may need to negotiate directly with the IRS.
If you are able to set up an installment agreement, you will be required to make regular monthly payments until your tax debt is paid off. The amount of your payment will depend on how much you owe and your ability to pay. It’s important to note that interest and penalties will continue to accrue on your tax debt while you are making payments.
One benefit of an installment agreement is that it can help you avoid further collection efforts, such as wage garnishments or bank levies. However, it’s important to make your payments on time and in full, as the IRS can still take collection actions if you default on your agreement.
If you are struggling to make your monthly payments, you may be able to negotiate a lower payment amount or a temporary suspension of payments. It’s important to communicate with the IRS if you are experiencing financial difficulties, as they may be able to work with you to find a solution.
Remember, setting up an installment agreement is a short-term solution for stopping a wage garnishment. If you have a large tax debt or are facing other tax issues, it’s important to explore all of your options for resolving your tax problems.
Long-Term Solutions for Stopping Wage Garnishments
Long-term solutions are more sustainable in resolving an IRS wage garnishment. Rather than relying on short-term fixes that provide temporary relief, implementing long-term solutions ensures a more stable financial future. Resolving an IRS wage garnishment through long-term solutions requires strategic planning and understanding of tax laws, as well as familiarity with the IRS’s collection procedures. It can be a complicated and time-consuming process, but it is often necessary for achieving a permanent resolution. In this section, we will discuss some long-term solutions that taxpayers can use to stop wage garnishments and regain control of their finances. we can help you.
Completing missing tax returns
One of the long-term solutions for resolving a wage garnishment is to complete any missing tax returns. If a taxpayer has unfiled tax returns, the IRS can file returns on their behalf, which are known as Substitute for Returns (SFR). SFRs are typically filed without any deductions or credits, which can result in a much higher tax bill than if the taxpayer had filed a return themselves. Additionally, if the taxpayer had unreported income or business expenses, they would not have been taken into account when the SFR was filed.
The only way to fix this problem is to file a return or amend the SFR with correct information. If the correct information results in a lower tax bill, the taxpayer may be able to have the wage garnishment reduced or lifted altogether.
It’s important to note that completing missing tax returns can be a complex process, especially if the taxpayer has multiple years of unfiled returns. In these cases, it’s advisable to seek the assistance of a qualified tax professional to ensure that the returns are filed correctly and to minimize the chance of triggering an audit.
Ultimately, completing missing tax returns is a long-term solution that can help resolve a wage garnishment, but it requires time, effort, and attention to detail to ensure that the returns are filed correctly and that the taxpayer is in compliance with all tax laws and regulations.
Submitting an Offer in Compromise
Submitting an offer in compromise is a long-term solution that may help you stop wage garnishments by settling your tax debt with the IRS for less than the full amount you owe. This can be a difficult and complex process that requires detailed financial information and careful consideration of your circumstances.
Before submitting an offer in compromise, you need to ensure that you are eligible for this option. The IRS considers several factors, such as your income, expenses, assets, and potential future income when evaluating an offer in compromise. You also need to be current with all of your tax filings and payments and not be involved in any open bankruptcy proceedings.
If you are eligible and choose to submit an offer in compromise, you will need to fill out a detailed financial statement and make an offer to the IRS for a specific amount to settle your tax debt. The offer amount should be based on your ability to pay and the value of your assets.
Once you submit your offer, the IRS will review your application and make a determination on whether to accept or reject it. If the IRS accepts your offer, you will be required to comply with certain conditions, such as filing all of your tax returns and paying any taxes due for a certain period of time.
Submitting an offer in compromise is a long-term solution that requires careful consideration of your financial situation and tax debt. It is not an easy option, but it can provide relief from wage garnishments and help you get back on track financially. It is always recommended that you seek the help of a qualified tax professional before submitting an offer in compromise to ensure that you are eligible and that the process is handled correctly.
Enforcing Statutes of Limitations on the IRS
One of the long-term solutions to stopping a wage garnishment is to enforce the statutes of limitations on the IRS. Statutes of limitations are time limits within which the IRS must take certain actions in order to collect taxes from a taxpayer. These time limits vary depending on the circumstances of the case, but they generally range from three to ten years.
If the time limit for collection has expired, the IRS is legally barred from taking collection actions against the taxpayer. However, it is important to note that the IRS is not obligated to inform the taxpayer when the statute of limitations has expired. As a result, it is crucial for taxpayers to have a thorough understanding of their rights and responsibilities in regards to statutes of limitations.
There are a number of circumstances that can affect the statute of limitations on tax debt. For example, the statute of limitations can be extended if the taxpayer files for bankruptcy or leaves the country for an extended period of time. In addition, the statute of limitations can be suspended while the taxpayer is involved in an appeal or in negotiations for an offer in compromise.
If a taxpayer believes that the statute of limitations has expired on their tax debt, they may be able to stop a wage garnishment by providing the IRS with evidence that the time limit for collection has passed. This may involve providing documentation that shows the date when the tax liability was assessed, the date when the statute of limitations began running, and the date when the statute of limitations expired.
It is important to note that enforcing statutes of limitations on the IRS can be a complex process that requires a thorough understanding of tax law and the legal system. As such, taxpayers who are considering this option should seek the advice of a qualified tax professional who can help them navigate the process and ensure that their rights are protected.
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Stopping Wage Garnishments & Levies
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IRS Notification Process for Wage Garnishments?
The IRS is a powerful organization with the ability to enforce wage garnishments and levies when taxpayers fail to meet their obligations. But the IRS is not all-powerful, and taxpayers have rights that must be respected.
If you owe taxes and are unable to pay them, it’s important to understand the IRS notification process for wage garnishments. The IRS is required to follow specific procedures before initiating a wage garnishment, and it’s crucial to be aware of these procedures in order to protect your rights.
In this section, we will explore the IRS notification process for wage garnishments, and provide information on what you can do if you receive notice from the IRS that your wages are going to be garnished. By understanding your rights and the procedures the IRS must follow, you can take action to stop a wage garnishment before it starts.
Initial notice of past due taxes and request for immediate payment
The initial notice of past due taxes and request for immediate payment is the first communication that a taxpayer will receive from the IRS regarding any outstanding tax debt. This notice serves as a wake-up call, indicating that the taxpayer is behind on their tax payments and that they need to take immediate action to resolve the issue.
Receiving this notice can be a stressful experience, especially for those who may not have been aware of their outstanding tax debt. However, it is crucial to address the issue promptly to avoid further collection action from the IRS, such as wage garnishments and levies.
Ignoring this notice can lead to serious consequences, as the IRS will continue to escalate its collection efforts until the debt is paid in full. This can include interest and penalties that can add up quickly, making it more challenging to resolve the issue in the long run.
It is essential to take this notice seriously and seek professional guidance to resolve the issue as quickly and efficiently as possible. There are various options available to taxpayers to address their outstanding tax debt, and a qualified tax professional can help determine the best course of action based on their unique financial situation.
Final Notice of Intent to Levy
The Final Notice of Intent to Levy is a serious notification from the IRS that indicates they have taken all appropriate measures to collect any outstanding tax debts you owe, but you have not responded. The notice is usually sent via mail, and it provides the taxpayer with the opportunity to make payment arrangements or file an appeal with the IRS. If the taxpayer fails to take any action, the IRS can proceed with wage garnishments or levies.
It’s important to understand that the Final Notice of Intent to Levy is not the first notice you will receive from the IRS. In fact, the IRS is required by law to send several notices before proceeding with wage garnishments or levies. If you receive this final notice, it means that you have exhausted all other options, and the IRS is now taking serious actions to collect the outstanding debt.
Ignoring the Final Notice of Intent to Levy can have severe consequences, including wage garnishments, levies on bank accounts, and property seizures. It’s essential to take immediate action by contacting the experienced IRS Debt Relief Tax Attorneys at Nick Davis Law in Katy | Houston, TX to help prevent these actions from taking place.
Appealing a Final Notice of Intent to Levy
When dealing with the IRS, it’s essential to understand that there are ways to appeal their decisions. If you’ve received a Final Notice of Intent to Levy, you still have the option to appeal it. However, the process can be complicated, and it’s vital to follow the necessary steps to ensure your appeal is successful.
Appealing a Final Notice of Intent to Levy requires a solid understanding of tax laws and regulations, as well as knowledge of the IRS appeals process. It’s important to seek professional help to ensure that your appeal is well-founded and effectively presented.
In the following sections, we’ll provide you with the necessary information to understand the appeals process and help you take the first steps towards stopping wage garnishments and levies.
Good Cause to Appeal
When you receive a Final Notice of Intent to Levy from the IRS, it can be a jarring and overwhelming experience. However, it’s important to remember that you have the right to appeal this notice if you believe it was issued in error or you have a valid reason for not paying your taxes.
To appeal the notice, you must demonstrate “good cause,” which essentially means providing a legitimate and justifiable reason for not paying your taxes or disputing the amount owed. Some examples of good cause for appeal include:
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Incorrect tax assessment: If you believe that the IRS has assessed your tax liability incorrectly, you can provide evidence to support your claim and request a review of your case.
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Financial hardship: If paying your taxes would cause undue financial hardship, such as being unable to afford basic necessities like food and shelter, you can provide evidence of your financial situation to support your appeal.
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Medical emergency: If you or a family member has experienced a serious medical emergency that has made it impossible for you to pay your taxes, you can provide documentation to support your claim and request an appeal.
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Errors by the IRS: If the IRS has made an error, such as applying your payment to the wrong account or failing to credit your account with a payment you made, you can provide documentation to support your claim and request an appeal.
It’s important to note that the burden of proof is on you to demonstrate good cause for appeal, and you must do so within the allotted time frame. Working with an experienced tax professional such as the IRS Debt Relief Lawyers & Tax Attorneys at Nick Davis Law in Katy, Houston, TX can help ensure that you have the best chance of successfully appealing a Final Notice of Intent to Levy.
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