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Posted on Oct 12, 2009 in Wage Garnishments and Levies | 0 comments

3 Tips for Avoiding an IRS Wage Garnishment

When you owe the IRS money for past taxes, you are probably living in the fear that they are just a few steps behind you and sooner or later they are going to catch up to you and begin garnishing your wages at work.  Then, your secret is out.  Now everyone, at least it feels like it, knows you owe money to the IRS.  On top of that embarrasment, you have to figure out how you are going to survive when you are only receiving a small fraction of the income you are used to receiving.

Since the number one goal is to avoid an IRS levy, here are five tips to help you avoid an IRS wage levy when you owe the IRS money for unpaid taxes.

Tip 1: Keep in touch with the IRS

Now, this isn’t a guarantee that the IRS is not going to garnish you eventually, but if they are sending you letters and calling you at home and you are doing nothing but ignoring them, you better believe they are going to lose patience fast and begin collection procedures much faster than they would if they knew you knew you owed them and you were working towards a resolution.

I don’t know how many times I have met with people who owe the IRS who have just been running from the IRS and they can’t seem to understand why the IRS won’t cut them any slack.

Tip 2: Get some advice from a tax problem resolution professional.

While the IRS tells you that they will work with you and that you do not need to have an attorney representing you, that is not the case.  Think of it like this…it is similar to the situation where someone has been arrested for a crime and they are being interrogated.  Without an attorney present you could be saying something incriminating that otherwise you would not have had to answer.

The tax problem resolution professional will help you to know your rights and assist you in finding the nuances of your case that will help you.  There are also “tricks of the trade” that they can employ to prevent levies and wage garnishments from occuring (especially in the immediate future) that you may not know of.

Tip 3: Organize your financial documents

Most people that owe the IRS a lot of money do so, at least partly, because they are disorganized and cannot put their finger on the documents they need quickly enough to satisfy the IRS or to meet deadlines.  One of the first steps you should take as you decide to resolve your IRS problems and to prevent a wage garnishment or levy from the IRS is to get your finances organized.  Begin keeping copies of all of your monthly bills.  Make sure you keep your bank statements and balance your check book each month.  The more knowledge you have about your own personal situation, the easier it will be to convince the IRS that you should not be levied and some other relief should be granted for you.