IRS Wage Garnishment - A Taxpayer’s Worst Nightmare-SaveMoneyGuides.com
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Hey, my name is admin, and I first published 'IRS Wage Garnishment - A Taxpayer’s Worst Nightmare-SaveMoneyGuides.com' on 6th August, 2008, within the Tax section.
From-SaveMoneyGuides.com-This Could be You: Payday is, without a doubt, the best day of the week. Let’s face it, that’s why we’re at work in the first place. But what happens if you owe the IRS in back taxes and they start garnishing your wages? You probably aren’t going to be as excited about getting paid as you’d like to be. That’s because wage garnishment is a serious problem and it happens to thousands of Americans every day. Learn about the process before it happens to you!
They Can’t Take My Money! On the contrary; they can and they will. If you owe the IRS, they can collect it virtually however they want. The Wage Garnishment is the most powerful because there’s nothing you or your employer can do about it. The IRS can legally take up to 75% of your weekly paycheck in order to pay toward your tax debt. When the IRS looks at tax debt, they don’t see anything but owed money. That being said, they have no problem putting your finances on the skids in order to get that debt paid.
How to Avoid It: The best way to avoid this from happening is to file on time, and pay off your debts the best way you can. It is only when the IRS doesn’t hear from you that they implement something as powerful as the wage garnishment. But if you’re already deep in the hole, here are some things you can do:
? Payment Plan: You can set up a monthly payment plan with the IRS to break your debt into installments. The garnishment will be removed as long as you make this payment each month on time. This is a good way to pay off your debt. But remember, interest and penalties still accrue so you could end up paying more than you owe. Plus, the IRS gets to decide how much they take out of you each month so keep that in mind.
? Negotiate a settlement. The best way to negotiate a settlement with the IRS is with the help of a tax professional. You could do it by yourself, but a seasoned tax professional will have the right amount of knowledge and experience to make sure your issue is resolved.
Act Now! As a former IRS Hitman, I know exactly how devastating the hits can be. Owing money to the IRS is a serious issue. Remember, the biggest reason the IRS attacks with a wage garnishment is because people try to ignore their debt.
Now you have the smoking gun…Use it!
