IRS Notices Tax Levy

What is the IRS Notice CP 523?

This letter is sent to you by the IRS if you default on your IRS payment plan. An explanation is given about the payment plan and if there is no action taken within 30 days, this agreement may be terminated. A tax lien may be levied against your assets after about 90 days if there is still no action taken.

For U.S. residents, notices are sent via certified mail. Those who are staying abroad are contacted through registered mail.

When is the IRS Notice CP 523 usually received?

Should your check payment bounce or other monthly payment arrangements go awry, the payment plan is considered defaulted by the IRS. Other cases may be that insufficient financial information was submitted or incorrectly inputted. Obtaining a new balance or failing to file a tax return also puts you in default. Any failure to pay will be taken as a default.

What are the steps to take when you receive the IRS Notice CP 523?

Make a payment before the termination date or payment deadline indicated in the notice. That might put you back on the installment plan. Call the IRS to confirm the payment made.

Contact the IRS immediately if there are errors in the payment agreement or the amount due is incorrect.

When your new balance accrues, that will probably lead to a payment plan default. Coordinate with the IRS or a tax professional to restructure a new monthly payment plan. The form 433-F, a financial statement, may require submission.

Request for a Collections Appeals Program (CAP) if you are unable to resolve this issue with the IRS. You must apply for this within 30 days from the date of termination.

What are the timelines that occur upon receipt of IRS Notice CP 523?

If there’s no payment made when notice was received, the payment plan may be terminated after 30 days based on the printed date on the notice. You have 45 days to appeal the defaulted agreement. Wait for the agreement to terminate, then you have 76 days to appeal the notice of intent to terminate the installment agreement.

If there is no action within 90 days, the failure-to-pay penalty rate increases, and a tax lien may be filed. Assets may be seized. Don’t wait for this to happen by contacting a tax professional to help you sort out this matter.

Again, please don’t hesitate to get information and guidance from professionals who are very well-versed with these types of cases. The Installment Agreement may be reinstated if several factors come into play. This may mean submitting more financial information so your capacity to pay can be without question. Don’t let it lag too far or you might have a more difficult time getting your monthly installments in order.

There may be some additional fees and other documents that need to be filled out and promptly given to the IRS. Avoid getting tangled up in having a tax lien levied against you. This is because you risk losing your assets that might be used to settle your outstanding tax debt liabilities.

Tax Levy

What are the Assets that Can be Taken Away by the IRS?

What are the assets that can be seized by the IRS?

Even if your asset isn’t in your immediate vicinity, they can still seize it. For example, your friend borrowed your car and it’s parked in his or her garage, the IRS can still get it.

Whoever is in possession of your funds, the IRS has dibs on that. They can contact your employer who disburses your salary, they can contact your clients if you have accounts receivable from them. Your bank can be contacted to freeze your account and retirement savings so the IRS can collect first.

Everything you own can be taken by the IRS. Livestock, or tools of your trade can be retained, aside from a few other personal items. Please check a table based on filing status and exemptions so you can see what wages are exempt from the IRS levy.

What are the assets that cannot be seized by the IRS?

Though the IRS is able to seize a wide range of income, wages, and property, there are some things the IRS will not levy:

  • Minimum exemption for salaries and other income
  • Unemployment benefits
  • Worker’s Compensation
  • Income for court-ordered child support payments
  • Certain annuity and pension payments
  • Certain service-connected disability payments
  • “Job Training Partnership Act” assistance
  • Tools necessary for trade, business, or profession up to a specific value
  • Furniture and household items up to a certain amount
  • Principal residence, in most cases, because it requires a U.S. District Court judge to approve the sale
Tax Levy

How an IRS Seizure of Property Works and How to Stop It

The IRS has the right to seize the property of taxpayers who are negligent in paying their tax debts, or who simply refuse to pay or have failed to remit payment.  The IRS seizure of property can be imposed to fulfill a tax levy. If you find yourself in this situation, here are some information on how the IRS can seize your property for back taxes.

What is the process for an IRS seizure of property?

There is a three-step process for the IRS seizure of property.  These are necessary procedures so that you are properly notified and there is compliance with the law before a levy is issued.

A tax bill is sent to you by the IRS stating a “Notice of Demand for Payment.”

The IRS waits for you to respond, but you choose to ignore it. You neglect it or fail to make adequate payment arrangements with this tax authority.

That’s when the IRS can issue a “Final Notice of Intent to Levy and Notice of Your Right to a Hearing.”

A final notice is personally hand-delivered to the erring taxpayer, sent to the taxpayer’s address on file, or delivered by registered or certified mail. There is a 30-day period to appeal or arrange an equitable payment plan. If these arrangements fall through, after this thirty-day period, the IRS can begin taking your assets.

In some cases, there are exceptions to these procedures wherein the IRS seizure of property can proceed or necessary in the 30-day period. These are:

  • A jeopardy levy wherein the tax collection may be in jeopardy according to an IRS evaluation.
  • Your state tax refund can be seized by the IRS with a CP504, which is not a Final Notice of Intent to Levy.
  • If found to be a federal contractor, the IRS can issue a levy to collect the tax debt.
  • A Disqualified Employment Tax Levy or DETL

Even with the exceptions stated above, the IRS must still honor your appeal rights and inform you about them after the levy has been issued.

It’s great to know what assets the IRS can levy and those that cannot be seized.

File a request for Collection Due Process (CDP) Hearing

An appeal can be made requesting a Collection Due Process (CDP) hearing once you receive a notice of intent to levy. Submit the IRS Form 12153 (Request for a Collection Due Process or Equivalent Hearing). Better to consult with a tax professional to assist you with this appeal.

A case must be presented to the IRS showing why the IRS shouldn’t seize your assets once you are in the collection due process hearing. You could show that you already settled the amount or the IRS made an incorrect assessment of your tax liabilities. Perhaps, they should be running after your ex-wife or ex-husband. Again, a tax professional will make the appropriate recommendations.

Upon your attendance at the CDP hearing, a decision on your case will be made by the Office of Appeals. If the decision is unsatisfactory to you, another appeal can be submitted in 30 days.

How to Stop the Levy on Your Wages, Tax Refund, or Bank Account

With a tax levy imposed through wage garnishment, this will remain until the debt is fully paid or the IRS will decide to release the levy. Tax refunds during this time will also be kept by the IRS and applied to your debt. Pay your debt or enter into an agreement with the IRS to halt this wage garnishment. Consult with a tax professional.

With a levy to your bank account, the funds will be frozen for 21 days. The bank forwards the funds to the IRS. During this holding period, you can stop the levy by again coming to an agreement or resolution with the IRS.

Learning How a Property Levy Works

A revenue officer will visit your home or business to enforce an IRS seizure of property. Vehicles parked outside your house will be taken and with your consent, other assets may be seized within your property boundaries.

With no permission given to enter your private property, the revenue officer will acquire a Writ of Entry. The courts will grant this similar to warrant. This gives the revenue officer the legal permission to enter private areas of your abode or business and to seize property.

Getting Help to Stop a Tax Levy

When you receive a notice of intent to levy, immediately contact the IRS or a tax professional. Request for that CDP hearing. Thirty days might pass by and you’ll lose your chance to appeal. Let a tax professional prepare you well for this situation.



Tax Levy

What are the Types of Tax Levy and You Should be Worried About Them?

The Internal Revenue Service, or IRS, uses this very aggressive collection mechanism called the IRS tax levy. When you owe back taxes, this levy grants a legal seizure of the taxpayer’s assets. The tax lien is just a claim on the assets, but the tax levy can seize these said assets. The following can be included in the levy: bank accounts, investment placements, accounts receivables, salaries, social security, pensions, insurance policies, as well as other physical assets.

The Process for a General Tax Levy

As much as possible, there won’t be any surprises in receiving a tax levy because there are a series of steps to follow before implementation.  The assessment begins with filing your tax return and determining the money owed to the IRS. Or the IRS will file a return on your behalf, which is also known as a substitute for return (SFR). This tax bill will be sent to your address indicated in their files requesting for payment of this tax debt.

Unfortunately, you were unable to pay and made another arrangement to settle this debt. The IRS will send a Final Notice of Intent to Levy and Notice of Your Right to A Hearing. This levy takes effect thirty days after notice. It is required by the IRS to notify taxpayers about this intent to levy at least thirty days before. The applicable law is the 1998 IRS Restructuring and Reform Act.

Looking into the Different Types of Tax Levy

The IRS will apply the levy, which will be their last resort to recoup what is owed. Here are some examples:

Through a wage levy or wage garnishment, your employer will be contacted to demand that a certain percentage of your salary be set aside to settle the tax debt. Compliance is imminent because the employer might be penalized if it declines the IRS. This remains in effect until the amount is paid inclusive of interest and penalties or some other arrangement has been agreed upon. Should a tax attorney be able to prove hardship to the IRS, there may be removal or a reduction of the wage garnishment.

The IRS bank levy means that the IRS can demand your bank to hold your funds. After twenty-one days, they can deduct the amount owed from your account. If the first withdrawal doesn’t satisfy the debt, they can return for more withdrawals once more money is deposited into the account.

The property seizure allows the seizure of your car, your boat, your house, or any other assets that can cover the amount owed.

Through a 1099 levy, many levies can be issued by the IRS or some states to collect your 1099 payments. The IRS can only apply the levy to any amount you are owed currently. They are not allowed to go after anything owed to you for future work.

The taxing authorities can also look into other seizures by applying the levy to retirement accounts, dividends. licenses, life insurance, rental income, accounts receivable or commissions.

If necessary through a seizure of passport, the IRS can coordinate with the State department to deny or revoke your passport if your tax debt is at least $50,000 or more.


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Tax Levy

What is a Tax Levy?

The tax levy is a collection mechanism used by the IRS and the local state. If you are unable to fulfill your obligations for a tax debt, your assets, your bank account, any future earnings can be held in possession by these entities. The IRS tax levy’s main goal is to repay the debt you owe.

What are the basics for a Tax Levy?

One of the more difficult debts to eliminate is tax debt. Declaring bankruptcy doesn’t necessarily make it go away, and compared to other creditors, tax authorities have more power in their arsenal.

The tax levy is a prime example of that power. For instance, even without taking you to court or being able to win a judgment against you, the IRS can seize your property to settle your tax debts. Other collectors like banks or credit card companies, need to file a lawsuit and go through more processes to collect from you.

Aside from exercising that power of a tax levy, the IRS gets first dibs on funds due to them from your assets, bank accounts, and paychecks. Mortgage lenders, collection agencies, and other creditors need to wait their turn even if they were ahead of the line.

What happens next when you experience a Tax levy?

There are several ways the IRS can impose a tax levy on you. With a bank levy, your bank account withdrawals are sent straight to the IRS. Employers may receive a notice of a wage garnishment wherein a portion of your salary gets forwarded to the IRS to satisfy your tax debt. Seizure of assets is the most common because that includes your house, your car, and any other assets which can be sold and the payment goes toward your accounts payable. Any tax refunds due to you on a state or municipal level goes to the IRS and not to you.

There may be other options, but these are just a few examples.

What is the difference between a tax levy and a tax lien?

The IRS may place a tax lien on your property that will affect your credit score.  The tax lien gives creditors a warning that you are a risky borrower, giving them enough reason to reject any future loans. That is the main difference because a tax levy actually seizes your assets.

When will you actually get penalized for a Tax Levy?

Any tax debt puts you in a position to have a tax levy imposed on you. It remains the last resort of the IRS because several warnings and notices had been sent beforehand.

Monitor your mailbox because the IRS will send you several correspondences before the levy is put into effect. So, update your mailing address and maintain communication with the IRS so they can be informed of your present financial difficulties. Once you received a Final Notice of Intent to Levy and Notice of Your Right to A Hearing, the tax levy may be soon to follow. Keep those channels open with the IRS so you can clarify any confusion or extension for your tax payments.


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Tax Levy

Different Options to Stop an IRS Wage Levy or Wage Garnishment

You have 30 days to file an appeal from the time that you receive a final written Notice of Intent to Levy before the IRS can seize your assets for an unpaid tax debt. This 30-day rule has some exceptions, but if you fail to take action within the said deadline, the agency will proceed with the wage levy or wage garnishment. You can settle your tax debt in full or undergo payment agreement with the IRS.

The IRS wage levy will continue until you have fully settled your tax debt, or if you have come up with an amicable arrangement with the agency, or otherwise, you can opt to wait for the Collection Statute Expiration Date for the tax years that you have been delinquent in tax payment.

There are some exceptions, or a way out, to stop an IRS wage garnishment. The best way to do it would depend on your financial or credit situation and also the taxes you owe. With the options outlined below, you would be required to be up-to-date in filing your taxes. You would need to file your tax returns before any arrangements or tax resolutions would be made between you and IRS.

How Stop an IRS Wage Levy or Wage Garnishment


Appeal for a Collection Due Process (CDP) Hearing

You can request for a Collection Due Process, or CDP hearing procedure, from the IRS Office of Appeals. This allows taxpayers the right to appeal the levy and lien decisions of the IRS. The Office of Appeals is an umbrella organization that is within the agency but independent from IRS. The latter covers the levy.  You have 30 days to request for a CDP hearing from the day that the IRS has sent you the final written notice of the intent to levy. Collection of payment would usually stop once you proceed with the CDP hearing process — except in the event of state refund levies, federal contractor, jeopardy, and DET. To request for CDP, you would need to fill out form 12153 and then send it to the IRS officer handling your case.

While you are waiting for the schedule of the hearing, it is advisable to consult early on with a tax professional who can represent you in the hearing procedure and be able to sort out issues.  This professional will also help you come up with the best tax resolution option that would result to a win-win situation.

If you wish to dispute, then you must propose an alternative for collection activities, claim that you are experiencing financial hardship, or offer defense.  The wage garnishment will continue once IRS has come up with a decision. For more information, check out publication 1660 .

File for an Offer in Compromise

This is used to stop IRS wage garnishment.

For those who can afford to pay in installment terms, they may not be qualified for an Offer in Compromise (OIC). This is considered as a “collection alternative,” which is made in agreement with the IRS and the taxpayer. This allows the individual to settle his or her tax debt for less than the actual amount owed.

You need to apply for an OIC. This would usually be granted in the event that there is doubt to collectibility, liability, and if it is based on an efficient tax administration. You may want to consult a tax professional before applying for an OIC.

Request for an Installment Agreement

One of the most preferred payment plans is the Installment Agreement. To apply for this, you would need to get in touch with a licensed tax professional and contact the number indicated on your levy notice. If you are unable to pay right away, you can apply for an installment agreement, which allows you to have staggered payments. Once the IRS approves this payment plan, you get to establish good credit standing and this should stop the wage garnishment.

Demonstrate Financial Hardship

If you intend to file for hardship, then you must be able to declare in detail your financial situation. You need to prove that you are incapable of paying the taxes owed due to financial hardship before the IRS can declare you as uncollectible. The agency will then have to temporarily stop all collection activities until such time that your financial condition gets better.

Apply for Innocent Spouse Relief

Married taxpayers would usually file jointly because of the benefits of this arrangement, but in this setup, you will also be both responsible for paying taxes. However, if you feel that there are omitted, erroneous, or inaccurately reported items on your tax returns, then you can dispute this. It is advised to consult with a tax professional when you intend to apply for an Innocent Spouse Relief (ISR) to contest tax liability and prove your claim.

File For Bankruptcy                                                    

Once you file for bankruptcy, you will automatically be released from debt and personal liability. This also stops wage garnishment. Filing for bankruptcy is also a way for other taxpayers to eradicate trace of old tax debt but if you still have a balance in your tax debt, then IRS would start wage garnishment right after completion of bankruptcy. You can only erase old tax debt if you did not commit any tax evasion or fraud. This automatic stay prevents creditors from collecting payments from you. This however is just temporary and has a negative impact on your credit standing so only consider this as a last option. It is recommended to work with a bankruptcy attorney or expert to guide you in filing for bankruptcy.

How to Dispute the Effects of the Wage Levy


Provide Proof of Low Income Enough to Be Declared “Uncollectible”

You can reduce your working hours so as to establish your hardship status and be declared uncollectible by the IRS. You should, however, be careful with declaring financial hardship because IRS may not go after your wages, but it can seize your bank account and other assets. In addition, having low income or trying hard to cut back your hours to declare a low salary may not help augment your expenses after all.

Temporarily Resign from Your Job or Change Employers

This does not appear to be a good move – not one bit. However, there are many taxpayers who would choose to change employers or quit their jobs, so they could prevent IRS from seizing their wages. They think that if they do this, it would take months for IRS to start collecting tax payments again. However, once IRS finds out that you resumed work with another employer, then wage garnishment would start again. Many people detest wage garnishment by the IRS but if you have received a final notice to levy then it would be wise to seek expert advice and assistance from a tax professional.

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Infographics Tax Levy

IRS Wage Garnishment Frequently Asked Questions

What is an IRS Wage Levy or Wage Garnishment?

An IRS wage levy, or wage garnishment, is a legal acquisition of your assets or money from your payroll to compensate for your back taxes. The wage garnishment happens when you keep on ignoring all the notices, letters, or warnings from the IRS.

The Internal Revenue Service (IRS) will ask your employer to send the a particular amount from your paycheck until such time you’ve settled your tax due or get into an arrangement with the IRS. This collection process also applies on how the states levy wages.

How much does the IRS levy from your paycheck?

The IRS will send your employer publication 1494 and other instructions to take a portion of your salary.

The table shows the amount you’ll get and the amount that will be appropriated to the IRS. Your filing status and the number of exemptions filed will determine the amount that will be left to you. For example, as of 2017, a single taxpayer, with two exemptions and got paid weekly by his employers, was allowed to take home $277.78 every week and the rest of the amount would be garnished by the IRS.

If you are married and you have three exemptions filed jointly then you can keep $477.88 each week. The remaining amount will go to the IRS. Check out the table to see the percentage of your salary that can be kept based on your filing status, the frequency of payment, and exemptions.


Can IRS Levy Bonus Payments?

Bonuses are usually considered to be included in your paycheck, and this, of course, can be garnished.

Levy on salaries will continue until it is released. The IRS levy your bonus, too,if your employer pays it aside from your regular salary. Even if you have back taxes, your employer will be asked to forward your entire payment to the IRS because the amount exempt was already remunerated for that specific pay period.


How to Stop IRS Wage Garnishment?

There are ways to stop IRS levy especially wage garnishment.

An IRS final notice requires immediate response and action for you to set up a resolution or any payment arrangement with the IRS to settle your tax debt. You may also qualify for a financial hardship for you to be considered as uncollectible. Another option is an Offer in Compromise.


How to Stop State Wage Garnishment?

State laws can regulate the amount that can be taken away from your paycheck. The rules, however, differ from one state to another. For instance, some states can lower the amount that will be garnished, but they cannot stop the garnishment unless you have paid off your tax debt.

The agency will not reduce or stop wage garnishment unless you file bankruptcy or prove that you are facing financial hardship that might compromise your family’s well-being.

IRS Wage Garnishments Law:

It is legal for the IRS to garnish your wages or seize your properties and other assets when these three actions have been fulfilled (with exceptions):

  • The IRS must have assessed your tax liability and sent you notices for the amount you owe
  • The taxpayer ignored the notices and overlooked the payment of back taxes
  • The IRS had sent the “Final Notice of Intent to Levy” and Notice of Your Right to a Hearing within 30 days before the actual levy started

If you didn’t respond immediately to the final notice, or file an appeal, after the 30-day grace period, you cannot stop the IRS from collecting the taxes you owe. There’s this exception where the RS can start the garnishment without having to wait for 30 days after they sent the Final Notice of Intent to Levy.  

The IRS is very powerful that it can choose its tax collection activity over following the rules.

A Disqualified Employment Tax Levy, or a federal contractor, won’t be required to undergo a hearing process 30 days in advance after the levy takes effect.


What’s the Exact Section of the Internal Revenue Code that States the IRS Has the Authority or Power to Levy?

You can find this ruling on the Taxpayer Relief Act or Section 6331 of the Internal Revenue Code of 1986 that clearly states the IRS has the authority to levy wages or properties so they could collect back taxes.

What are the Types of Wages that the IRS Can Take or Levy?

The IRS can legally seize or levy the following:

  • Wages or salaries
  • Dividends
  • Commission
  • Payments on promissory notes from another person
  • Bank account funds or spouse’s bank account (for joint accounts)
  • Retirement accounts
  • Federal contractor payments
  • Federal retirement annuity income coming from the Office of Personnel Management
  • Car
  • House
  • Other declared assets or properties

What Properties Are Exempted from an IRS Seizure?

Again, the IRS is allowed by law to seize your properties to collect tax liabilities.

Despite the long list of items the IRS can seize, the IRS cannot take away the following:

  • Court-ordered child support payments
  • Social Security Disability Insurance
  • public assistance payments
  • workers compensation
  • Pension payments
  • School books
  • Clothing
  • Furniture
  • Tools used for business
  • Assistance under the Job Training Partnership ac
  • annuity payments

How To Avoid Wage Garnishments Related to Tax?

The straightforward way is to become a responsible taxpayer. You must file your tax returns and make timely payments to avoid any IRS tax problems.

If you cannot afford the total taxes owed, you should hire the service of a licensed tax professional to get a better success.

How Can a Licensed Tax Professional Assist You With IRS or State Wage Garnishments?

State and IRS wage garnishments are difficult to deal with and will require an expert tax professional to represent you before the IRS. They have the “know-how”  on how to get you out of this situation and provide with the best arrangement or tax resolution. The tax experts will analyze your financial situation and needs and take care of the entire negotiation process to stop IRS levy or garnishment.


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when will irs implement wage levy or wage garnishment



Infographics Tax Levy

How to Stop Wage Garnishment with the Help of a Tax Professional?


When you overlook an outstanding tax debt and intentionally avoid paying the amount owed, the IRS can garnish your wages.

Are you receiving notices from IRS that it will garnish your wages? Then it could be your cue that you need help from a licensed tax professional to remove or stop wage garnishment.  It’s difficult to stop wage garnishment  alone without a tax professional backing you up. A licensed tax expert can help you negotiate an arrangement with the state or IRS, so you can prevent wage garnishment from taking its toll in your life.

If IRS already has its hands on your wages, the tax professionals will be able to release or stop the levy, while negotiating a suitable arrangement that suits your financial standing and tax requirements.

If you fail to take action, the State or IRS will continue with wage garnishment until such  time that:

  •         You have come up with an agreement with the state or IRS
  •         You have completely paid tax payment owed inclusive of interest and penalties.
  •         The time frame allotted for collection of tax payments has expired.

What are the Ways that a Tax Professional Can Help with Wage Garnishment?

While many people would choose to sort out their financial troubles alone, consulting a licensed tax professional can help you get the best results for your tax problems — and one of these is wage garnishment.

Working with a tax professional can help you negotiate with IRS to come up with a mutually beneficial arrangement or resolution that will stop wage garnishment. Below are the myriad of benefits that you can get when you choose to work with a tax professional:

 Call the State or IRS on Your Behalf

A licensed tax professional can speak with the state or IRS  representatives on your behalf. The most common problem experienced when calling the State and IRS is the long hold time. A tax professional can definitely help you speed things up as they have a dedicated practitioner line that can call IRS and majority of states in the U.S.

 Experts on Your Tax Rights

Licensed tax professionals know how to play their cards well enough. They know what financial details must be disclosed and which ones are to be kept confidential. Some taxpayers make the mistake of over-disclosing financial information to the IRS, which could aggravate their situation. The latest tax gap report by the IRS is now at $32 billion for people who have not filed tax returns and $39 billion attributed to non-payment for 2008-2010; respectively.

Can Stop State and IRS Wage Garnishment 

A tax professional is your go-to specialist if you are having problems with IRS and would want to prevent IRS and state wage garnishments right away. In most cases, a licensed tax professional would be able to go around any financial disputes and help you negotiate levies quickly. Depending on your financial or credit situation and tax due, a tax professional can help you achieve the best results in terms of completely resolving IRS tax problems; while in some states, tax professionals can help you reduce tax wage garnishments and other forms of levy. You can always turn your back to these people to stop wage garnishment.

Illustrates Your Eagerness to Resolve Your Tax Problems

Wage levies are most often enforced as a result of your inability to respond to the notices and calls from the IRS and the state in line with your tax debt. Hiring a tax professional will give the state and IRS an impression that you are seriously trying to resolve the dispute. Currently, IRS revenue officers prefer to discuss and communicate directly with tax professionals because this allows faster resolution and win-win arrangements.

Guarantee the Best Tax Resolution or Agreement 

Most taxpayers do not have a clue on what their tax options are. Most likely, state and IRS representatives would not even give you recommendations or advice. A licensed tax professional always has your best interests in mind.

He or she will assess your current financial situation and, from there, determine whether you qualify in some of the IRS and state tax programs. The tax professional will help you get the best payment plans that can solve your financial and tax debt problems. If you’re looking for the best way on how to stop wage garnishment, then that is getting a tax professional.

Understand the Requirements for a Specific Tax Resolution

Tax resolution firms and tax professionals have an extensive experience in negotiating with the IRS. They know and understand the requirements, timeframe for filing, and deadlines. Their expertise in tax resolution will help you get the best arrangements to settle your tax debt.

Help You Prepare Tax Returns

Licensed tax professionals, such as CPAs, Enrolled Agentss, and Tax Attorneys, are savvy in filing tax returns. These licensed tax professionals are experienced in filing for business and individual tax returns. They can also hep you file a tax return to avoid problems with the IRS>

How Does a Tax Relief Process Go?

The process starts by requesting a free consultation with IRS and state wage garnishment.

Free Tax Consultation

First of all, you will need to choose a licensed tax specialist or tax resolution firm that can provide a comprehensive and unbiased analysis of your financial and tax situation. The tax professional can assess your current financial standing by asking you a few questions related to wage garnishment notices and your outstanding tax debt. They could ask about the start date of the wage garnishment and tax owed. They would ask about the notices from IRS, the date you received the letter, and if the notice is duly certified.

The tax professional will also ask you about your tax and financial situation. You should prepare for the consultation by reviewing your financial information like your monthly income, expenses, assets, and debts.


If you are not sure with your financial data, then you can get free consultation from a licensed tax professional. The investigation would usually require that you get the account transcripts from the State or IRS, so you can check and verify tax filing and payment. This process will allow you to retrieve information regarding the years that you will have to file, how much you have to pay for each tax year, as well as the interest and penalties.

Tax Options

After your financial standing and case details are reviewed, the firm will lay out tax options that are applicable to your case. The tax professional will also assess whether you will qualify in any of the tax resolution programs. He or she will also explain the pros and cons of each tax option. The fervice fees will also be explained for you to get you in good credit standing with the state and IRS.

If You Decide to Hire

In the event that you decide to go for a tax option (with no obligations), the licensed tax specialist will send you a limited power of attorney (POA) to review and he or she will negotiate with the state or IRS in your behalf. POA will also instruct the state and IRS to communicate directly with the tax specialist. In addition, all emails and letters will be forwarded directly to the tax professional. If you would need help with tax filing, you have to comply to some requirements. If you do not have an old W2s or 1099s, the tax specialist may request for an income or wage transcripts for record purposes. Once the tax resolution is complete, the assigned tax professional will still continue to guide the taxpayer to avoid future problems on tax payments.


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