A garnishment is a method used to collect a monetary judgment against a defendant by ordering a third party (a garnishee) to pay money, otherwise owed to the defendant, directly to the plaintiff. For instance, if A sues B for money that B owes to A and a judgment is entered against B, money that would otherwise be due to B is sent to a garnishee, who then pays the money directly to A, on behalf of B. In the case of collecting taxes, however, certain jurisdictions may allow for garnishment without a judgment or other court order.

Wage garnishment is the most common type of garnishment used by the IRS to enforce collections.  The IRS will send a Notice of Levy to the employer.  As a result, money is deducted by an employer from an employee’s monetary compensation and paid directly to the IRS. These wage garnishments continue until the entire debt is paid or arrangements are made to pay off the debt.

One of the most common reasons for wage garnishment is due to back taxes. Regarding garnishments under U.S. federal tax law, the IRS only needs to satisfy a limited number of requirements before it can start a wage garnishment:

  • The IRS must have assessed the tax and must have sent a written Notice and Demand for Payment;
  • The taxpayer must have neglected or refused to pay the tax within the time prescribed in the notice; and
  • The IRS must have sent a Final Notice of Intent to Levy and Notice of Your Right to a Hearing (levy notice) at least 30 days before the levy.

When processing payroll, there is a certain hierarchy to which wage garnishments must abide in order to satisfy all garnishments in the order of importance. For example, federal tax obligations always trump state tax obligations when garnishing an employee’s salary.

Since a garnishment by the IRS is a form of administrative levy, no court order is required. In addition, the IRS may serve the Final Notice in person, leave the notice at the taxpayer’s home or usual place of business, or may send it to the last known address by certified or registered mail. It is important to note that the taxpayer does not need to actually receive the notice for the notice to be effective. In fact, most taxpayers never actually receive the final notice, and may not realize they are in danger of receiving a levy until their wages are actually garnished.

Even if you cannot pay all of your back taxes, you can still stop the IRS’s enforced collection actions, such as wage garnishment, and try to settle your tax liabilities by negotiating a reasonable monthly payment plan or an offer in compromise settlement that pays a fraction of what is owed.  The tax attorneys at Bucci Law Offices can help you establish these alternative payment methods as well as analyze and assess other options that may be more suitable to resolving to tax problems.   Bucci Law Offices can be your tax advocate and fight for your rights!

How Can Bucci Law Offices Help?

Remember, IRS problems do not go away by themselves and usually require immediate attention.  You need to know your rights and understand your options.  At Bucci Law Offices, our tax attorneys can help you analyze and assess the options most suitable to resolving your tax problems. You need someone in your corner to protect your rights and interests – we can do just that.  Bucci Law Offices can be your tax advocate and fight for your rights!

If you would like to develop a strategy for filing your tax returns and explore establishing an alternative payment methods contact Bucci Law Offices immediately!  Each second you delay is costing you money!  How long can you afford to do nothing? Call Bucci Law Offices now at 954-764-4440 or 877-764-4440 to learn more about how we can help you with your tax resolution!