A READER ASKS --- Can the IRS actually take 25% of each of my paycheck? ANSWER --- YES, ACT QUICKLY and DO NOT DELAY!!! The amount that is withheld varies anywhere up to 70% of each paycheck. The specific amount determined by the IRS varies and is dependent on such factors as the total amount owed and number of dependents, etc. If youve received a wage garnishment notice from the IRS, you should act IMMEDIATELY. What it means is that the IRS is going to automatically take a portion of the money that you owe them directly from your pay check each pay period to pay off your tax debt. This could put a tremendous dent on the amount of money you now take home each month. Instead, you should contact the IRS and offer to make monthly payments to them on your own instead. Even if your employer received a wage garnishment notice, if you contact the IRS and make a payment arrangement, generally, the IRS can transmit a notice to your employer that they should no longer withhold and send to the IRS funds because you have entered into an arrangement. If you fail to pay your debt or to negotiate a payment plan with the IRS after you receive the first notice, you very likely will receive an official “Final Notice” that states the IRS intentions to take their money from your wages/assets. This duty can be used legally to seize any of your real or personal property, including your wages (which are considered personal property). You only have 10 days after receipt of this notice to act before the IRS will begin the wage garnishment process. Once the IRS has placed a duty against your wages, your employer will be contacted about his or her legal obligation. Your employer has no alternative and has to withhold a specific sum of money from each of your paychecks for transmittal to the IRS for your tax debt payment. So, yes, the amount that is withheld could be up to 70% of each paycheck. The specific amount determined by the IRS varies on such factors as the total amount owed and number of dependents etc. A wage garnishment can seem like the most drastic collections measure the government could ever impose. However, remember that if you do receive notice of a wage garnishment by the IRS, you do have a short time to respond to their letter/demand. The alternative is to try and work with the IRS in some form or payment plan options. Either way, do not stick you head in the sand when it comes to paying your taxes owed. Contact the IRS first and see what plans they have available for you!
Posted on: Thu, 20 Mar 2014 21:14:49 +0000
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