How to Stop IRS Wage Garnishment
and Keep Your Paycheck

If you are wondering how to stop IRS wage garnishment, you have options. 

From payment plans to proving IRS errors, there are ways to protect your paycheck and regain control of your finances. Call Damiens Law at 601-476-1361 today to speak with an experienced tax professional who can help you take immediate action. 

Unfortunately, there is a lot of misleading info about wage garnishments, and we’re here to dive into the truth and answer your FAQs. 

Key takeaways

• Once the IRS starts garnishing your wages, you can stop it by proving error, establishing hardship, or getting an approved payment plan or settlement.
• To stop a garnishment before it starts, appeal or set up payments as soon as you receive the Final Intent to Levy notice.
• The best option is to avoid a wage garnishment by making payment arrangements proactively.

Quick Ways to Stop IRS Wage Garnishment

If the IRS is about to take money from your paycheck — or already has — acting fast can protect your income. Here are the most common ways to stop garnishment and resolve your tax debt. 

Strategy	Effect on pending garnishment	Effect on in-progress garnishment
Set up monthly payments	Will stop from moving forward	Will only stop if the IRS agrees in advance
Request currently not collectible status	Will prevent if requested by the deadline on notice	Will stop if the IRS approves the request
Get an offer in compromise	Will prevent if requested by the deadline on notice	Will stop if the IRS approves the offer
Prove error	Will stop from moving forward	Will stop immediately
Request a hardship release	Will stop from moving forward if IRS agrees with hardship reason	Will stop if IRS agrees with hardship reason
File for bankruptcy	IRS can’t garnish while the stay is in place	IRS must stop once stay is issued, but may resume if tax debt survives bankruptcy

How to Stop the IRS From Garnishing Wages

Once a wage garnishment order is in place, it becomes significantly more challenging to stop and secure an alternative solution from the IRS. But it’s not impossible – especially if you work with the right attorney.

Paying Off the Debt in Full

Of course, you could always pay the debt off in full, including all penalties and interest. This settles your debt with the IRS and ensures that they don’t need to take further collection actions. However, if this were an option for people, they likely wouldn’t be at the point of having their wages garnished.

Example: Alex sold a vehicle he no longer needed, used the proceeds to pay off his back taxes in full, and had the garnishment lifted within a week.

Currently Not Collectible

Those in dire financial straits can often be considered currently not collectible by the IRS. For an individual to be currently not collectible, the IRS must decide that any collection action against them would put them in financial hardship. This means that making any monthly payments or partial payments would leave you in a position where you cannot meet your basic needs.

If the Collection Statute Expiration Date (CSED) runs out before you are no longer considered currently not collectible, you won’t have to pay the tax debt. However, if the IRS reviews your financial situation before this point and determines you can make payments, they will resume collection activity. 

Example: David had just taken a lower-paying job and couldn’t afford rent and food after garnishment began. By proving financial hardship, he secured CNC status and stopped the garnishment.

Offer in Compromise

An Offer in Compromise can be a powerful lifeline for taxpayers with limited means. If paying your full tax debt feels impossible, but you can contribute something, this program might be the key to relief. 

It works by letting you settle your debt for less than the total owed, based on what you can reasonably afford. You agree to pay an amount that truly reflects your financial situation, either in one lump sum or through a series of monthly payments, and the IRS forgives the remaining balance and stops all collection actions.

Example: Sharon owed over $40,000 in back taxes. She worked with a tax professional to submit an OIC, paid a reduced lump sum, and had the remaining balance forgiven.

Payment Plan

An IRS installment agreement is a popular choice for taxpayers who can’t pay their full tax bill upfront but can manage smaller monthly payments. 

If you decide this is the right path, be realistic about what you can afford each month. Many people commit to payments that look manageable on paper but become overwhelming when unexpected expenses arise. 

Note that setting up payments proactively will stop a garnishment. Once a garnishment is in place, you need to contact the IRS directly to ensure the payment plan will stop the garnishment – it’s not guaranteed at that point.

Example: Maria received a Final Notice of Intent to Levy and had 30 days to act. She worked with a tax pro, set up a reasonable payment plan within a week, and avoided garnishment entirely.

Prove That the IRS Made a Mistake

You may be able to stop IRS garnishments if the IRS did not provide the necessary notice before taking action against you. You can also stop a garnishment by providing other errors. 

Example: The IRS never sent Sam a Final Intent to Levy notice before garnishing his wages. Once he established an error, the IRS stopped the garnishment.

When It’s Time to Talk to a Tax Pro

If you’re facing or already dealing with wage garnishment by the IRS, a tax attorney can help you stop garnishment quickly and choose the right long-term solution. If you’ve received a final notice from the IRS and you’re within your 30-day window to address your tax debt, you are nearly out of time before the IRS garnishes your wages. 

At this point, talking to a tax pro can help you quickly assess your options, find the best one for your needs, and start the application process. Sorting through the options on your own could take more time than you have, risking garnishment before you’re able to take action.

You should also consult a tax professional if you are overwhelmed by your tax relief options and unsure where to start. It’s easy to go with the first solution that presents itself, even if it’s not necessarily the best one. For example, installment agreements are an excellent option for many taxpayers—but those who live on a tight budget may commit to payments higher than they can genuinely afford. Then, when they default, they are right back at square one. By working with a tax attorney from the beginning, they can find the best solution and avoid those that may cause further financial hardship.

We also recommend talking to a tax attorney if you are currently being garnished and you are experiencing financial hardship because of it. In this situation, you may be unable to afford to wait weeks or months while the IRS makes a decision regarding your request for a payment plan, offer in compromise, or currently not collectible status. A tax attorney can better assess your current situation, explain your options, and take immediate action.

Get Help Now!

The sooner you take action, the sooner you can stop IRS wage garnishment and protect your paycheck. 

If you’re being garnished right now or facing imminent wage garnishment, you do not have to go through this alone. This is an incredibly stressful time, and the team at Damiens Law is here to help you find a way forward. We want you to experience the relief that comes with handling your tax debt, getting caught up, and taking control of your finances. Reach out online or call us at 601-476-2693 to set up a consultation and to learn how we can help with wage garnishments.

Frequently Asked Questions About Stopping IRS Wage Garnishment

When your paycheck is on the line, it’s normal to have urgent questions about timing, eligibility, and what options are available to you. Below are answers to some of the most common questions taxpayers have when trying to stop IRS wage garnishment.

How quickly can I stop IRS wage garnishment?

The timeline varies based on the situation and the relief option you select. A tax attorney can help you learn what to expect. 

How Much the IRS Can Garnish from Your Paycheck?

The IRS can take far more than other creditors, often leaving just enough for basic living expenses. They determine how much you need to live on, based on your filing status and number of dependents, and anything over that amount can be garnished. 

Will bankruptcy stop IRS wage garnishment?

Filing bankruptcy will indeed trigger the automatic stay, which stops creditors—including the IRS—from all collection actions. This gives you temporary relief from garnishment while your bankruptcy case goes through the bankruptcy court. 

However, there is no guarantee that your tax debt will be discharged in bankruptcy. While some tax debt is dischargeable in bankruptcy, some tax debt is not—and you won’t know which category yours falls into until you talk to a bankruptcy attorney. 

Will switching jobs stop garnishment?

Switching jobs is technically a way to get out of your garnishment—but it’s temporary. The garnishment order only allows the IRS to collect from your current employer. When you switch jobs, there will be a short period of time where the IRS has not yet contacted your new employer, and you get to keep your full wages. But know that this is a short-term solution. 

The IRS will be able to track you down fairly quickly thanks to tax documents from your new employer, and then it’s just a matter of time before there’s a new garnishment order in place. Not only will you still eventually end up paying what you owe, but you’ll also have a long string of short job placements on your resume, which could harm your career growth.

Do I qualify for an Offer in Compromise or hardship status?

Eligibility depends on your income, expenses, assets, and overall financial situation. The IRS will review detailed documentation to decide whether to reduce your balance through an Offer in Compromise or pause collection under Currently Not Collectible status.

Can I stop IRS wage garnishment without paying the full amount owed?

Yes. Options like an Offer in Compromise, hardship status, or a long-term payment plan may be able to halt garnishment without requiring you to pay your entire balance at once.

What if I missed the deadline to respond to the IRS notice?

Even if garnishment has already started, you may still be able to stop it by proving error, entering into a payment arrangement, requesting hardship relief, or obtaining a levy release. Acting quickly is key.

Are there alternatives to wage garnishment for repaying tax debt?

Yes. The IRS may accept lump-sum settlements, monthly installment agreements, or other arrangements that avoid garnishing your wages. A tax professional can help you choose the best option for your circumstances.