The IRS has many tactics that they can use if you have not filed your income tax or paid your taxes, including wage garnishment. There are a few requirements that have to be met before a wage garnishment can be issued: they must have assessed the amount due by completing a substitute return if you have not filed, and requested by letter that you pay-and you did not respond by doing so. A Notice of Intent to Levy and Notice of Your Right to A Hearing must have been sent at least 30 days before the wage garnishment. Although you can successfully negotiate a wage garnishment release after it is in place, it is much easier to do so before it is enacted.
In either case, the easiest way to secure a wage garnishment release is to file your taxes if you have not done so, and to pay the amount due in full. If this is not possible for you, you can negotiate an alternative solution, such as a monthly payment plan. You also have other options such as filing for protected tax-collection status, also called Currently Not Collectible status. You will need to fill out several forms to attain this status, and prove that you cannot make monthly payments. Your account will then be exempt from IRS collection strategies. You will still however, be subject to interest and penalties, as well as the possibility of a lien on your house.
While you can negotiate a wage garnishment release on your own, you can also consult with a tax attorney to help you through this process. Tax attorneys are skilled negotiators and this can mean that you will no longer have to deal with the IRS or their collection efforts if you sign a power of attorney authorizing them to represent you. They can also advise you on other options for after a wage garnishment release, such as an Offer in Compromise Settlement where you will pay only a portion of what you owe and have your debt cleared once and for all.
