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Resources:
Tax Education: Wage
Garnishment Wage
Levies
An IRS levy is
the process where the IRS takes money from a third party that is
owed to the taxpayer.
Any type of property can be levied. For example, if the IRS
levies wages, that means the IRS gets most of the taxpayer's
paycheck.
Most levy notices
are computer generated. The IRS generally must send a notice of
intent to levy at least 30 days before the actual seizure. Once
IRS issues a levy on a bank account, it is effective for 21 days.
An IRS levy on employee wages is continuing in nature, meaning
the levy is indefinite until the IRS removes it. Employers have
the right to fire employees who get hit with levies by the IRS. Some
employers actually exercise this right.
We have seen the IRS levy
customers of self-employed people. For example, we are
aware of one day care center where the IRS levied the payments
owed by the parents to the day care center. Over two
hundred parents of little toddlers were levied on account of
unpaid tax debts of the day care center.
Since many of the
wage levies are computer generated, mistakes are not unknown.
Sometimes the taxpayer does not owe the tax. Nevertheless,
in the case of a wage levy the
employer must submit the levied wage to the IRS until the wage
levy is released by the IRS.
Particularly onerous cases
involve wage earners who have not filed tax returns, and don't
have sufficient information to file the back tax returns.
Unless the case is handled correctly, the IRS will continue to
levy wages until the returns have been filed and processed.
Processing can take as long as several months!
Wage levies can
be released even if the tax is still owed, but the response
must take place quickly.
Professional assistance is usually required. Call us
immediately.
For
more information contact us
at taxhelp@taxdefendant.com
or
Toll Free 866-216-1930
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