The IRS is garnishing wages! While many people enjoy a better quality of life than ever before, many others also significantly struggle to deal with the challenges of modern life. For example, taxation has – in the last two decades – become far more tangled in the way that it works. While in the past most of us could handle our own taxation, today it’s advised that you get some kind of legal aid to help you manage the process.
One such problem that many people can face today via taxation is their wages being garnished. This means that you owe the IRS some money, and they decide to take it out of your wages instead of waiting for you to pay. While it takes months to get to this point, and many letters and threats, it’s brutal when it does happen.
To help you avoid that problem, you should make sure that your beef is with the IRS, not your employer. An employer MUST comply with an IRS demand, so don’t start hating your boss or think they sold you out. They most certainly didn’t, sorry.
You can find that the IRS will be helping themselves to as much as one quarter of your income. If you cannot sustain that kind of loss, then you should look to:
- Always comply with the rulings of the IRS. You might not agree, and you might think it’s a touch Draconian. That being said, the rules are the rules. Follow them, work with the IRS, and listen to their every directive. It is the safest and most effective way to ensure you don’t fall foul of their rulings.
- If you can, get the money together via asset sales or a loan to get the money needed to pay them off. The sooner you can pay it off, the less chance of garnishment.
- If you cannot afford it all, then make them a compromise offer that is going to help you avoid these issues. However, you should always look to hire a CPA to help you do this, or a tax-related attorney, who can get a better understanding of your position and credentials.
- Should you be able to prove that garnishment would put you into poverty, then the IRS is likely to relent – until your situation improves. If you cannot afford basic life costs due to garnishment, an agreement is possible most of the time.
- Again, hiring a tax expert can help you to overcome such issues without too much stress. A CPA can ensure that you don’t fall foul of the rules and that you can get a garnishment agreement that is going to stop your earnings from being slashed by so much.
So long as you can make a plan to make some kind of payment and you show the IRS that you are willing to comply instead of just ignoring them, success and amicable agreements are possible. Be clear, courteous and arm yourself with facts!
