En esta noticia

The Internal Revenue Service (IRS) has a levy mechanism through which it can seize all kinds of assets, such as wages, if a taxpayer does not meet their tax obligations.

However, this is not an automatic process but rather a measure that the agency is authorized to take when the time comes. Before doing so, the taxpayer will receive several notices warning about this possibility.

Alert.Official: Government will cancel the retirement benefits of all beneficiaries who work less than these years

The IRS will garnish the wages of all these workers, one by one: When can my wages be garnished?

The IRS may garnish part of workers’ wages of those who have unpaid tax debts and have not responded to the collection notices sent by the agency.

The government can intervene in a taxpayer’s wages if these obligations are not met. Image: Shutterstock y EFE | El Cronista.

However, a Wage Levy is not an automatic process. Before implementing this measure, the IRS must follow a series of steps:

  1. Determine that a tax debt exists
  2. Send a bill or payment notice
  3. Send several collection reminders
  4. Send a “Final Notice of Intent to Levy” and notice of the right to a hearing
  5. Wait at least 30 days for the taxpayer to respond or regularize the situation

Only if the taxpayer has not taken the actions required by the IRS can the agency proceed with a wage levy.

How does an IRS wage levy work for a taxpayer?

The IRS may order the employer to withhold part of the salary and send it directly to the federal government. When this process begins, the levy does not only apply to one paycheck; it continues and withholds part of each pay period until one of these situations occurs:

  • The debt is fully paid off
  • The taxpayer agrees on another payment method with the IRS
  • The agency releases the levy
  • The legal collection period expires

It is worth clarifying that the IRS will not garnish 100% of the salary, since a portion is protected according to the taxpayer’s filing status and the number of dependents declared by the worker.

Regulation.Goodbye to the Rent Law | Tenants will be allowed to stay in the home even if the owner wants not to renew the contract

How can I avoid having my wages garnished? Important information everyone should keep in mind

If you want to avoid a levy, the most recommended course of action is to act before the 30 days after the Final Notice of Intent to Levy have passed. Any of these alternatives can be taken:

  • Pay the tax debt
  • Request an installment payment plan (Installment Agreement)
  • File an appeal within the established deadline
  • Request an Offer in Compromise in certain cases
  • Demonstrate severe financial hardship that prevents covering basic expenses