IRS Wage Garnishment and the IRS Bank Levy Explained
There are times when circumstances mean that we are unable to pay IRS tax demands when they fall due. This article reviews some of the mechanisms available to the IRS in recovering unpaid tax debts. It will focus around IRS wage garnishment and the use of the IRS bank levy.
Wage garnishment occurs when an employer is given an instruction, usually by the IRS to take away a proportion of the wages in your paycheck in order to settle off some of the outstanding tax liabilities that you are due to pay. It is tempting when in receipt of an IRS wage garnishment to blame the employer, but in truth, by the time it gets to the stage whereby the employer is requested to remove your wages they literally have no choice. They are required to carry out the instructions given.
If you are not an employee, or do not receive a regular paycheck, then the wage garnishment route would clearly not be that effective. The IRS however, has other options at its disposal. One commonly used one is the IRS bank levy, in which the IRS instruct your bank or banks to freeze any cash retained in your accounts and to use the money to pay down the tax debt outstanding.
Neither of these circumstances are pleasant to deal with. They both involve the involuntary removal of your property or income to repay outstanding debts due. The best advice that you can get when you are in receipt of such an order is to appoint an IRS tax attorney to negotiate with the IRS on your behalf. Although this will incur additional expenditure it may well be that you do not suffer to the same extent as a result of their intervention.