An employee’s life can become a bad dream due to wage garnishment because it can result in your paycheck being drastically reduced. It is possible to sidestep a wage garnishment if you understand what it is.
A wage garnishment is used by the IRS to bring outstanding taxes to your notice. A specific amount of your salary is levied and garnished so that your penalties are paid. Before this is done the IRS sends you notification of what you owe and you have ten to thirty days to pay. Payment is dependent on the amount and the kind of tax. If you do not acknowledge the notification the IRS will send a final notice. If you still do not acknowledge the final notice the IRS will take action to a wage garnishment. The IRS will take up to seventy percent of your monthly salary. If you earn $3,000 you may give up more than half to the IRS. This carries on until you have settled your tax debts.
Once you are in such a situation it is very hard to get out. The objective of the IRS is to force you to pay your taxes. One the one hand, Uncle Sam wants to teach you a lesson so that you pay your taxes on time in the future and thereby avoiding the payment of penalties. On the other hand, you experience financial hardship while undergoing wage garnishment.
If you want to stop the wage garnishment process you are going to have to come to an agreement with the IRS to adopt a payment plan that allows you to pay your taxes and also pay your other bills. In certain instances you can settle the debt with an offer in compromise.
