Wage Garnishment & The IRS
Wage garnishment; this phrase puts the deepest fear into the hearts of many, as well it should. The IRS can garnish wages, but they do so only when necessary. They deem it necessary when other attempts to collect the debt (taxes owed) go unanswered. The IRS sends five different letters, or notices, before resorting to garnishing wages (officially: executing a levy).
Avoiding a Tax Levy
The best-case scenario is one in which you are not in this situation; that you avoided the levy. How can one do that? You can avoid a levy by resolving the issue before it comes to that. One of the main reasons a person ends up in this predicament is because when it’s time to file taxes, they are pretty sure that instead of a refund, they will owe money, money that they do not have at the time. In this case, it is best to get in touch with a tax accountant.
Hiring an Accountant
It will just mean I owe the accountant money, too. I am in this situation because I do not have the money right now. First, understand that the fee you will owe the accountant will be far less than what you owe the government, especially when fees and penalties are added if you do not pay on time. Plus, most accountants will allow you to make payments if you are unable to pay their fee at once.
Call Our Orlando Office at (407) 382-6658 to Schedule Your Initial Consultation
Working with an Accountant
Now that the fear to contact an accountant is out of the way, focus on what they can do to help you. At CPA Accounting and Tax Services, we will analyze your situation- what led up to it, what is the forecast on your ability to pay, etc., and then we will plot a course that will satisfy the IRS and bring you some much-needed relief.
One option that we can help with is to request an installment plan. This will allow you to make monthly payments. Many people find that this structure gives them the time they need to sell off assets, borrow money, or earn the money needed to pay the taxes they owe.
Are You Unable to Pay Your Debt?
If you are truly unable to pay any amount at the time, we can request, on your behalf, that the IRS consider you to be unable to pay. This will place your tax debt into a category classified as “currently not collectible.” If paying your debt will create an economic hardship on you, the IRS may grant you a forbearance, or break from enforcement of collection activities.
We can Help
Please don’t go it alone. We have the experience and knowledge to help you if you are facing a potential levy or wage garnishment. Call us today at 407-382-6658 so we can discuss these and other options with you.
More Helpful Articles on Our Tax Resolution Services:
- Back Taxes Owed
- Income Tax Amendments
- Innocent Spouse Relief
- IRS Audit Representation
- IRS Levies
- IRS Liens
- IRS Payment Plan
- IRS Seizures
- IRS Wage Garnishment
- Offer in Compromise
- Non-Filed Tax Returns
- Payroll Tax Problems
- Prior Year Returns
- Voluntary Disclosure