If you have past due taxes, chances are you are stressed out. You may have already heard about how aggressive the IRS can be when it comes to collecting overdue debts. The truth is that you have every reason to be nervous. The IRS has powerful methods that they do not hesitate to use in collections. Among them are bank account levies, property levy and wage garnishment.
The harsh reality is that the IRS has one goal - to collect the money that they feel that you owe them. They are really not concerned about the impact that this may have on your life or the lives of your children. If the lights get turned off and the mortgage goes unpaid, so be it. The IRS will use every resource that they have to collect their money.
The amount of an IRS wage garnishment is calculated based on a formula. The amount will vary depending on your situation but will be somewhere between 30% and 85% of your total income. This obviously will cut your take home pay down to a level that few people can live on. In fact, you may only be able to take home several hundred dollars a week. The garnishment will continue until your debts are paid in full.
If there is any good news in all of this is that you will not be blindsided by a wage garnishment. There is a process that must be followed and you will know that an IRS garnishment is looming a few months ahead of time. The first notice you will receive will give you up to 30 days in which to fully satisfy your debt. It will inform you that if this is not done, they will be seeking a garnishment against you. If you can, now is the time to stop IRS garnishment by making satisfactory payment arrangements. While they will not offer debt relief help, they may be willing to set up a payment plan that you can live with.
You may want to consider hiring an attorney. You dealing directly with an IRS agent is generally not a good idea. They are highly trained to extract as much information from you as they can. Their intent is not to try to help you. Rather, it is to try to get us much information as they can for purposes of collecting the money you owe them. Chances are you may unknowingly say something that hurts your situation.