The IRS is a federal body responsible for ensuring that taxpayers meet their obligations. In the case of tax debt, the IRS may issue a levy to claim their taxpayer's assets. A levy creates economic hardships in the long term and reduces the borrowing capacity of the taxpayer. There are many types of IRS levies and we’ll be discussing wage garnishment and bank levies in this blog. If you are facing an IRS levy, such as wage or non-wage garnishment, in Texas, consult with an experienced tax attorney in your city for legal assistance. In this blog, we present an overview of IRS wage garnishment and bank levies.
What is IRS Wage Garnishment?
Wage levies or garnishment are court-ordered deductions on an employee's paycheck to satisfy their tax liability. The court requires the employer to withhold a portion of the employee's paycheck and pay to the IRS. Wage garnishment may continue until the debt is paid off or resolved, as per the court order. In addition to causing financial troubles for the taxpayer, wage garnishment can also create stress at work.
What are IRS Bank Levies?
Bank levy, or non-wage garnishment, is another type of IRS levy in which the IRS can claim your bank account. When the IRS requests funds for satisfying your federal tax debt, your bank will freeze the funds in your account and send them directly to the IRS. Bank levies, like other levies, continue to exist until your debt is paid in full or you’ve secured an IRS bank levy release. The IRS can claim funds from your account multiple times if you don't have sufficient funds the first time.
How to Deal with IRS Levies?
When you receive a notice of an IRS levy, you have several options:
Challenge the judgment if you believe and can prove that it was made in error
Accept the judgment and pay off your liability in a lump sum or installments
Negotiate with the IRS to work out an alternative payment plan or to release you from the levy.
For taking any of these actions, you may require assistance from a tax attorney as they possess in-depth knowledge of IRS codes and can help you deal with the IRS more effectively. They can represent you in the court of appeal to challenge the judgment or negotiate with the IRS on your behalf to work out a suitable payment plan or apply for a release from the levy (if possible).
Residents of Dallas, Fort Worth, Texas facing IRS levy problems can consult a trusted DFW law firm that has a team of expert wage garnishment and bank levy attorneys/ lawyers.
