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Tax Garnishment

By Edited Nov 13, 2013 0 0

Is part of your paycheck going to the Internal Revenue Services for taxes? If the government has garnished your paycheck, you are not helpless. We can help you escape out from under this situation that may be causing a hardship. Once tax garnishment starts the government has little incentive to stop it and can be tough to deal with.

The IRS has the power, the size and the experience needed to seize your money and even your property in order to recoup unpaid taxes. They are the largest collection agency in the world. The power to tax is part of the U.S. Constitution.

However, the same Constitution protects you from unlawful search and seizure of your money and property. Before the IRS can impose a tax garnishment, they must first send you written notification of the taxes owed and request a check. The letter asks you to contact them if you have a reason for not having paid the tax debt. Fail to respond and the agency assumes you have no reason. However, in accordance with the law, they continue to send you notices so that there is no issue that you were unaware of the debt or your rights to discuss or protest it. The last notice to you if they receive no response is the Notice of Intent advising you of their right to pursue collection of taxes. The next letter goes to your employer's payroll department requiring them to send up to 75 percent of your net wages to the Internal Revenue Service to recover outstanding taxes.

Employers have no option--they must comply with the IRS's demand unless they want to have their own problems with the government, including severe fines. Sometimes individuals who are self-employed think they are insulated from such recovery efforts but the government's right to tax gives them extensive authority to collect unpaid taxes from any revenue sources. The IRS may go after your customers or clients, requiring them to send payments for goods or services to the IRS rather than you. Your clients and customers have no choice but to comply with these demands from the IRS or incur the wrath of the agency themselves.

Such activity by the IRS is not merely humiliating--it can be disastrous to your job and business. Employers who don't want to deal with it or are leery of employees who have unpaid taxes might look for an excuse to lay you off. Clients and customers could be scared away. The IRS can keep up the pressure until the back taxes are paid or you make other arrangements. Other options for paying back taxes are Installment Agreements, a CNC status or accepting an Offer in Compromise. The most important action you can take is early action. The IRS is more cooperative with taxpayers who respond immediately and indicate a desire to cooperate. You have plenty of rights as a taxpayer.



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