IRS Wage Garnishment Release

If I have kids or dependents, can the IRS still leave me with only $266.35/week?

No. The IRS will allow you more money for each additional person in your household. A family of 5 filing jointly will have significantly more exempt from levy.

Your employer will typically give you an exemption worksheet when they receive the garnishment notice. Some employers base the exemptions on what you claimed on your W-4, but they'll usually adjust the amount if you can show that your W-4 doesn't reflect the actual number of dependents in your household.

When does the IRS stop garnishing my wages?

A wage garnishment stays in place until the tax debt is paid in full or otherwise resolved. Some taxpayers are content to leave it in place if they can still afford their bills. Collections agents at the IRS may leave a garnishment running for years if they can't get a taxpayer to enter into a voluntary agreement.

The way to stop it is to resolve the underlying debt. I can negotiate a payment plan, submit an Offer in Compromise, or get you placed into hardship status. Whatever makes sense for your situation.

My employer won't stop sending the IRS my garnished wages, even though the IRS released the levy.

This happens more than you'd think. Employers aren't always sure how to handle IRS levy orders. A good agent at the IRS will contact the employer to explain, but most are too overburdened to follow up, leaving employers to interpret the legal documents as best they can. Sometimes the IRS modifies a garnishment and the employer misreads the amounts.

If your employer is threatening to fire you over a wage garnishment, that could violate federal law (15 USC 1674). Contact me and I'll help sort it out with both the IRS and your employer.

Can the IRS garnish my Social Security benefits?

Yes. The IRS can levy up to 15% of your Social Security benefits through the Federal Payment Levy Program (FPLP). This happens automatically and doesn't require a Revenue Officer to take action. If you're living on Social Security and the IRS is taking 15%, that can be devastating. I can request a release of the levy based on economic hardship and potentially get you placed into Currently Not Collectible status so the garnishment stops.

Can my employer fire me because the IRS is garnishing my wages?

Federal law (Title III of the Consumer Credit Protection Act, 15 USC 1674) prohibits an employer from firing you because of a single wage garnishment. However, this protection is limited — it doesn't apply if you have garnishments from multiple creditors. Beyond the legal protection, the reality is that some employers become difficult when they receive IRS levy notices. If your employer is giving you trouble, contact me. I'll work to get the garnishment released quickly to minimize the impact on your employment.

I'm self-employed. How does the IRS collect from me if I don't have wages?

For self-employed individuals, the IRS can't send a traditional wage garnishment. Instead, they'll issue continuous levies against your bank accounts or send levies to your clients and customers who owe you money (accounts receivable). This can be even more disruptive than a wage garnishment because it directly impacts your business relationships. If you're self-employed and facing IRS collection actions, call me — the strategies for resolving self-employment cases are different from W-2 situations.

Can state tax authorities garnish my wages too?

Yes. State tax authorities have their own garnishment powers, and some states are actually more aggressive than the IRS. The amount they can take varies by state — some follow the same exemption amounts as the IRS, while others can take a larger percentage. If both the IRS and your state are garnishing your wages simultaneously, your take-home pay can be reduced to almost nothing. I handle both federal and state garnishments and can coordinate releases for both.