IRS Wage Garnishment
Ignoring your taxes can lead to the IRS addressing them for you, in ways you might not appreciate. Enforced collection of taxes often takes the form of an IRS wage garnishment. A Wage Garnishment is one way that the IRS collects your unpaid taxes. The IRS can decide how much of your monthly income it needs to pay off your debt, and then begin taking a percentage of your paycheck. They accomplish this by filing a notice of wage garnishment with your employer. Your employer is then legally bound to send the percentage of your wages listed in the notice to the IRS, and you get what is left over, even if it is not enough to live on. While limits on the percentage the IRS can take exist, you can still be left with very little money. Often times, your employer will fail to provide the necessary forms to fill out which would have limited the amount the IRS can keep, often leading to wage garnishments of up to 75 percent of your check. Additionally, now your employer and his payroll personnel know that you are in financial trouble.
When the IRS decides how much of your paycheck to take, they don’t take into account how much money you actually spend on necessities. Instead, they rely on tables of allowable expenses which they’ve compiled. If you’re living paycheck to paycheck, IRS wage garnishment deductions can leave you without enough money to pay your rent.
There are solutions to your tax problems that allow you to avoid IRS wage garnishments. Negotiated installment plans and settlement offers both accomplish the same thing as a wage garnishment. When installment plans or settlement offers are negotiated by tax professionals, your needs are much more likely to be taken into account.
CRA Tax Rescue professionals can get your wage garnishment temporarily suspended to give you time to find alternatives. Because CRA Tax Rescue professionals understand both IRS rules and collection tactics, we can be much more effective in dealing with the IRS than a non-professional can. Allowing us to deal with the IRS also stops annoying collection phone calls. Once we get your garnishment suspended, we can focus our experience on finding the best method of solving your tax problem. There are several ways to eliminate your tax debt, and our CRA Tax Rescue team is expert at all of them.