3 Ways to Stop the IRS from Garnishing Your Wages for Back Taxes

Posted on: 28 September 2015

When a person owes the IRS money for back taxes, the IRS has the right to come after that person to collect the money. One way the IRS does this is through wage garnishment. If you are facing this issue right now, you should realize there are three good methods to stop wage garnishment from happening. You can look into these options to determine if one might work for you, or you can contact an attorney for help settling this matter.

Prevent it from Happening

The best way to stop a wage garnishment is to prevent it from happening. When you owe money to the IRS, they will let you know. In fact, the IRS will send you several different notices informing you that you owe money. Ignoring these notices will not make the IRS go away, and they will seek wage garnishment if you do this.

When you get these notices, your best defense for avoiding wage garnishment is to clear up the issue with the IRS. You could do this by paying off your tax debt in full, but this is not always a feasible option. Another way to clear up this mess is to work out a repayment plan with the IRS. The IRS is willing to work with you if you contact them, but you must keep up with your part of the deal.

Another option you have is to work out a settlement plan. In some cases, the IRS will accept an amount that is less than what is owed. If they agree to this, you might be able to clear up the debt with an amount significantly less than what you actually owe.

Quit Your Job

If the IRS is already garnishing your wages, it can be hard to stop the garnishment from occurring. The IRS will notify your employer of the garnishment, and your employer is legally bound to garnish your wages after this. If this happens, there is an option you have to stop the garnishment, but this option involves quitting your job.

If you quit your job, the IRS cannot garnish your wages, because you will not have any. You could look for another job right away, and this will give you some time without a garnishment. When the IRS finds out you have a new job, they will most likely begin garnishing your wages from that job. Therefore, this option is only a temporary solution to your problem.

File Bankruptcy

The final option you have to stop wage garnishment is to file for bankruptcy. When you file for bankruptcy, all creditors must stop collection efforts, and this includes the IRS. The IRS must legally stop all attempts to collect the debt, but this will only happen for a while. After you file for bankruptcy, you will still owe this tax debt, because tax debt is not a type of debt that can be discharged through bankruptcy.

Because of the way this works, filing for bankruptcy is really only a temporary solution too. Filing for bankruptcy also leads to consequences for your future. It will cause your credit score to drop, and it may prevent you from getting loans in the future.

If you want a solution that will be permanent and final, it may require paying off the tax debt you owe. You can find out what your options are by contacting an attorney that specializes in back taxes and wage garnishment. Your attorney might be able to help you find a better solution that will permanently stop the wage garnishment and tax collection efforts by the IRS. To learn more, contact an attorney in your area today.