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Posted on Aug 25, 2009 in Wage Garnishments and Levies | 0 comments

Getting an IRS Wage Garnishment Released with Unfiled Returns

There’s nothing worse than getting that call or that tap on the shoulder from your payroll person at work wanting them to come talk to you because they have just received a notice from the IRS about the wage garnishment (or IRS wage levy as I may call it) on your paycheck next week.

There is a formula the IRS uses to determine how much you are entitled to keep based on the number of exemptions you may claim on your tax return.  Anything above the amount you are entitled to keep is sent to the IRS directly by your employer.  YUCK!

So what do you do?  Well you get on the telephone with the IRS to talk to them about your case and you find out (well, come on, you already knew) that you have some unfiled income tax returns.  But can’t they go ahead and work with you to set up a payment plan or offer in compromise so you can get the wage levy lifted and stopped?

No.  Before the IRS will work with you on resolving your case, they want to know what they are dealing with.  Do you just owe a few thousand dollars or will these unfiled tax returns prove that there are hundreds of thousands of unpaid tax debt out there?  Because they don’t know they won’t work with you until you have filed those returns.