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Dealing with IRS Wage Garnishment

Submitted by Tax Tiger on Tue, 9/22/2015 - 5:10 pm

When faced with possible IRS wage garnishment, most people have no idea how to handle it. Financially, it can be catastrophic, and emotionally, it can increase your stress level sky high. Individuals who are plagued with financial troubles are often shocked when their place of employment is instructed to withhold a percentage of their wages to then send to the IRS for an outstanding tax bill. Additionally, the logistics of IRS wage liens are usually difficult to understand. The exact mechanism of wage garnishment needs to be handled by a professional tax attorney who can explain your rights.

At Tax Tiger, our main focus is to help individuals and businesses resolve their IRS problems and give you IRS wage garnishment help. Our highly skilled team helps find resolutions for issues such as IRS wage garnishments, tax liens, and filing of back taxes. Young business man under stress with headache

How does Wage Garnishment Work?

Unpaid back taxes is one of the main reasons the IRS would garnish your wages. Other causes for wage garnishment include unpaid child support, unpaid student loans, and alimony that isn’t up to date. Since laws vary from state to state, it’s important to understand them as they apply to your specific location.

The IRS will withhold the money according to your disposable income. This is established by taking your deductions into account, such as social security and federal and state taxes. Keep in mind, these don’t include deductions for life or health insurance, donations to charity, or a private savings plan.

Consider this scenario as an example: If you owed back child support or alimony, the IRS would deduct a specific allotment based on your current earnings and total amount due. Then, those funds would be sent directly to the recipient. The same holds true if you were in arrears for your taxes. The IRS would deduct a specific amount based on the above-mentioned criteria and apply those funds to your unpaid tax bill.

When faced with financial problems, Tax Tiger can help you every step of the way. Knowledge is key to a positive resolution in times of troubles with the IRS.