If you find yourself in a challenging situation with IRS wage garnishment, you may be asking, “Can a tax lawyer help me with IRS wage garnishment?” The answer is a resounding yes. At Damien’s Law Firm, PLLC, we understand the complexities of dealing with the IRS, especially when it comes to wage garnishment. Our team of experienced tax lawyers is here to handle the intricate legal landscape on your behalf.
Facing wage garnishment can be a daunting experience, but our dedicated professionals are committed to providing swift and effective solutions. We leverage our legal experience to engage with the IRS, working tirelessly to negotiate on your behalf. Our goal is to explore options that may lead to a reduction, temporary pause, or even a complete halt to the garnishment of your wages. We understand the impact such situations can have on your financial well-being, and our team is ready to take the necessary steps to protect your interests.
If you’re grappling with IRS wage garnishment, don’t hesitate to reach out to Damien’s Law Firm, PLLC. We stand by your side, offering personalized legal assistance to help you overcome this challenging situation. Take control of your financial future – contact us today at 601-488-2079 for a consultation and let us guide you through the process with competence and dedication.
Understanding IRS Wage Garnishment and Your Rights
IRS wage garnishment can feel like an intrusive measure by the government, directly impacting your hard-earned income to pay off unpaid taxes. It’s a method the IRS uses to ensure they collect what is due, but it’s not as arbitrary as it may seem. The IRS follows a set procedure before implementing wage garnishment, and as a taxpayer, you have rights and legal safeguards to protect you.
However, understanding these rights and the wage garnishment process requires familiarity with tax laws, which can be complex and overwhelming. This is where a tax attorney can provide invaluable assistance. A tax attorney from Damiens Law Firm, PLLC can offer guidance, provide legal representation in your interactions with the IRS, and explore potential avenues to address your tax debt.
The Basics of IRS Wage Garnishment
When you owe federal taxes, the IRS has the authority to garnish your wages, salary, commissions, and bonuses. The process of withholding a portion of a person’s earnings by the IRS is known as wage garnishment. It is typically used to collect unpaid taxes or other debts owed to the government. The IRS issues a directive to your employer to withhold a portion of your wages, which is then remitted to the IRS to offset your tax debt. As a result, you may find yourself with significantly less income to meet your essential financial obligations, making it a challenging situation to navigate.
The IRS calculates the amount of wage garnishment by evaluating your disposable income after deducting specific allowable expenses. They must also ensure compliance with limits determined by factors such as your filing status and income level. For instance, if you are a single individual with no dependents, the IRS is prohibited from garnishing up to $1079.17 per month. If your earnings surpass this threshold, the IRS will garnish the excess amount.
Your Legal Safeguards Against Wage Garnishment
Facing IRS wage garnishment can be a daunting experience, but rest assured, you are not helpless. There are legal safeguards in place to protect you. A tax attorney or a certified public accountant (CPA) with experience in IRS matters can offer valuable guidance and representation when addressing IRS wage garnishments.
Under federal law, the IRS also recognizes the need to allocate a substantial portion of income for essential living expenses for individuals who owe money and have limited means. The National Standards are employed to establish permissible living expenses, thereby restricting the amount that can be subject to garnishment for low-income taxpayers.
Additionally, Low-Income Taxpayer Clinics (LITCs) provide support to low-income taxpayers by:
- representing them in dealings with the IRS
- offering assistance with audits, appeals, and collection disputes
- helping them address IRS notifications and resolve account issues.
Tackling Tax Debt: How a Tax Attorney Can Assist
You don’t have to handle IRS wage garnishment on your own. There are resources available to help you with the process. A tax attorney can provide you with the guidance and legal representation you need to manage your tax situation. They can help you understand the complexities of tax law and offer you advice on how to tackle your tax debt. Engaging the help of a tax attorney can provide you with protection of your rights, guidance through your tax concerns, and insights into potential avenues for addressing your debt.
A tax attorney from Damiens Law Firm, PLLC can prevent or circumvent IRS wage garnishment by:
- Assessing and applying suitable strategies such as installment agreements or an Offer In Compromise
- Advocating for taxpayers before the IRS, which is conferred through IRS Form 2848
- Offering invaluable assistance in complex tax debt situations by utilizing various IRS options such as negotiating installment agreements, applying for offers in compromise, and aiding taxpayers in understanding and selecting the most suitable course of action.
The expenses of engaging a tax attorney vary depending on the firm and their payment structure, with some operating on a flat fee or hourly basis. Damiens Law Firm, PLLC provides complimentary consultations, and the benefits and peace of mind that come from having a professional handle your tax issues are often well worth the cost.
Negotiating an Installment Agreement
An installment plan is an arrangement with the IRS to gradually settle tax liabilities by making monthly payments. If the IRS approves the plan, it can effectively halt IRS wage garnishment. A tax attorney can facilitate the negotiation of an installment agreement with the IRS by:
- Providing representation during communication and negotiation with the IRS
- Offering guidance and assessing your financial situation
- Assisting in setting up a payment plan to address your tax debt
The process of negotiating an installment agreement involves assessing your ability to pay and determining an affordable amount. This is followed by completing and submitting Form 9465, Installment Agreement Request, or utilizing the online application on the IRS website. It’s important to remember that the IRS takes into account several factors when evaluating an installment agreement proposal, including the amount of tax liability, your ability to pay, the reasonable collection potential, and your proposed monthly payment amount.
Seeking an Offer in Compromise
An Offer in Compromise is a program provided by the IRS to lessen the tax debt of a taxpayer facing financial difficulties. The IRS evaluates factors such as your capacity to pay, income, expenses, and assets when assessing an Offer in Compromise. A tax attorney can facilitate the application process by:
- Negotiating a reduced amount for your unpaid tax bill
- Thoroughly evaluating your financial situation
- Building a persuasive case for submission to the IRS
The duration of the Offer in Compromise process typically ranges from six months to a year, with variations based on the specific details of each case. While it can be a lengthy process, the potential reduction in tax debt can make it a worthwhile endeavor for many taxpayers.
Preventing IRS Wage Garnishment Before It Starts
Early engagement with the IRS is of great importance as it facilitates the early resolution of issues and helps in preventing the initiation of a wage levy, which can be challenging to rectify once implemented. It allows taxpayers to seek flexible assistance, collaborate with the IRS for community support, and receive customized communication, enhancing the IRS’s customer service efforts.
A tax attorney can assist in preventing wage garnishment by:
- Advising on strategies like setting up an installment plan
- Exploring an offer in compromise
- Guiding appealing or demonstrating financial hardship before the IRS initiates involuntary collections.
The Importance of Early Engagement with the IRS
Engaging with the IRS early on can prevent wage garnishment through various strategies such as:
- negotiating payment plans
- settling balances
- entering into installment agreements
- requesting an offer in compromise
- taking other proactive steps to address the matter before garnishment proceedings are initiated
It can lead to timely resolution of important issues, which may have an impact on the outcome of other associated concerns. It also presents an opportunity to seek support from the IRS Independent Office of Appeals, and with the guidance of a tax attorney, it offers advocacy and negotiation skills to advocate for deductions and navigate the tax resolution process.
The process of IRS asset seizure entails the IRS assuming control of either real or personal property, following which the property owner is required to promptly engage with the IRS to address their tax liability and seek a release of the seizure. Therefore, understanding the process and engaging with the IRS early on can prevent such consequences.
Utilizing Tax Relief Programs
The IRS offers various tax relief programs to taxpayers. These programs encompass:
- Penalty relief
- Offer in compromise for settling tax debt for less than the full amount owed
- Tax relief for spouses such as injured spouse relief
- IRS tax debt forgiveness programs like currently non-collectible status and installment agreements
A tax attorney, who is also a tax professional, can assist taxpayers in addressing audits, appeals, and collection disputes, as well as aiding them in responding to IRS notices and resolving account issues. Additionally, they can offer support for tax relief programs such as the offer in compromise. By working with tax professionals, individuals and businesses can ensure they are receiving quality guidance and representation in their tax matters.
However, understanding these programs and which one is suited to your situation can be complex. This is where a tax attorney comes in. By understanding your specific circumstances and the nuances of each program, they can help guide you toward the most effective solution, ensuring that you can take full advantage of the relief options available to you.
Release and Recovery: Stopping Active IRS Wage Garnishment
If you’re already facing IRS wage garnishment, it’s crucial to know that you still have options. You can demonstrate that the garnishment is causing significant financial hardship, or contest the tax liability itself. The IRS may opt to remove a wage garnishment when you can demonstrate that the garnishment is imposing significant financial hardship. This can be achieved through the Financial Hardship Exemption, which provides the opportunity for potential debt forgiveness in instances where repayment would lead to severe financial challenges.
A levy release is a measure taken to halt an IRS levy. To qualify for a levy release, you may need to demonstrate:
- immediate economic hardship caused by the levy
- nearing expiration of the statute of limitations
- entering into an installment agreement
- the property’s value exceeding the debt and releasing the levy aiding the IRS in tax collection
Remember, you are required to request an appeal within 30 days of receiving the IRS ‘Final Notice of Intent to Levy’ if you intend to stop the active wage garnishment during your pay period.
While these steps can help you stop active wage garnishment and even stop IRS wage garnishment, they can be complex and time-consuming. Having a tax attorney on your side can be beneficial as they can guide you through the process, ensure you meet all the necessary requirements and deadlines, and advocate for you with the IRS.
Demonstrating Financial Hardship
The official IRS definition of financial hardship in relation to IRS wage garnishment is when a taxpayer is unable to meet basic living expenses. By demonstrating financial hardship, you may be able to secure a release from wage garnishment, as it proves that the levy would impede your ability to meet essential financial requirements.
To demonstrate financial hardship to the IRS and halt wage garnishment, follow these steps:
- Reach out to the IRS using the telephone number specified on the levy notice or other correspondence.
- Clearly articulate your financial situation and explain why the wage garnishment would cause hardship.
- Provide supporting evidence for your claim, such as bank statements, pay stubs, and bills.
By following these steps, you can increase your chances of securing a release from wage garnishment.
Here again, a tax attorney can be of immense help. Damiens Law Firm, PLLC can assist you in building a strong case for financial hardship, guide you on what evidence to present, and represent you in your dealings with the IRS. Our knowledge of tax laws and procedures can increase your chances of successfully demonstrating financial hardship and securing a release from wage garnishment.
Contesting the Tax Liability
Contesting the tax liability involves:
- Disputing the IRS’s assessment of the amount of tax owed
- Presenting arguments and evidence to support the disagreement
- Appealing the decision if necessary
While contesting the tax liability may not have an immediate impact on stopping IRS wage garnishment, successfully disputing the tax liability and providing evidence proving the incorrectness of the IRS claim may lead to cessation or reversal of the garnishment.
The process for disputing a tax liability involves completing a protest and submitting it to the designated IRS address outlined in the appeal rights letter. Additionally, you have the option to request a meeting with an appeals officer, following the instructions provided in the proposed tax adjustment letter. It’s important to have evidence such as canceled checks, receipts, bills, tax returns, contracts or agreements, payroll records, bank statements, invoices, and correspondence with the IRS. Additionally, meeting the burden of proof is essential for prevailing on the claim. A tax attorney from Damiens Law Firm, PLLC can assist you in building a strong case and ensuring that you meet the necessary requirements for contesting the tax liability.
Navigating Complex Cases: When You Need a Tax Lawyer
Sometimes, tax issues go beyond wage garnishments and extend into more complex areas. Issues such as:
- Estate planning
- Starting a new business
- Unpaid taxes
- Audits or investigations
- Tax liens and penalties
- Complex tax issues
can quickly become overwhelming. In such scenarios, it becomes essential to hire a tax attorney. Legal ramifications of tax issues that may necessitate the involvement of a tax attorney encompass tax penalties, audits, tax fraud charges, and exposure to criminal allegations such as tax fraud.
A tax attorney can assist in such complex cases by:
- Representing clients in court cases related to tax disputes
- Negotiating compromises with the IRS
- Offering tax planning advice to help clients achieve the most favorable tax outcomes in their transactions
Therefore, it’s prudent to consider hiring a tax attorney when there is a potential for legal repercussions stemming from one’s existing tax position.
So, whether you’re being audited, facing tax fraud allegations, or simply need help understanding your tax obligations, a tax attorney can provide the experience and guidance you need to manage these complex situations.
Protecting Your Assets Beyond Wages
When dealing with unpaid taxes, it’s not just your wages that are at risk. The IRS has the authority to seize a range of assets for unpaid taxes, such as wages, bank accounts, Social Security benefits, retirement income, and property. However, a tax attorney can help safeguard your assets from IRS seizure by petitioning to have specific assets listed as exempt and by establishing legal trusts to transfer ownership of assets, thereby shielding them from government seizure.
The process of IRS asset seizure entails the IRS assuming control of either real or personal property, following which the property owner is required to promptly engage with the IRS to address their tax liability and seek a release of the seizure. Therefore, understanding the process and engaging with the IRS early on can prevent such consequences. The assistance of a tax attorney in such situations can prove invaluable, as they can guide you through the negotiation process, helping to safeguard your assets and ensuring your financial future.
The Role of Damiens Law Firm in Resolving Your IRS Issues
Dealing with IRS wage garnishment is no small matter. It can have a significant impact on your financial situation, but remember that you have rights and legal protections. Whether you’re trying to prevent wage garnishment, stop an active garnishment, or simply navigate a complex tax situation, a tax attorney can provide invaluable assistance.
At Damiens Law Firm, PLLC, we assist clients who are dealing with wage garnishment from the IRS due to tax-related issues. We provide a wide range of services, such as:
- Serving as an intermediary between the taxpayer and tax authorities
- Arranging installment payment arrangements for outstanding taxes
- Negotiating for reduced tax liabilities
- Representing clients in communications with the IRS
- Securing tax settlement agreements for IRS tax obligations
Additionally, we also offer services in estate planning and historical bookkeeping.
We’re well-prepared to assist with a range of tax issues, including:
- Tax debt
- Federal tax liens
- IRS notices
- Relief requests
- Allegations such as tax fraud and evasion
We understand that dealing with IRS wage garnishment can feel overwhelming, but you don’t have to face it alone. Our team of skilled tax attorneys is ready to guide you through the process, advocating for your rights and working toward a resolution that protects your financial future. At Damiens Law Firm, PLLC, we’re here to guide you every step of the way, from understanding your rights to negotiating with the IRS and protecting your assets. Remember, you don’t have to face this alone – reach out to us at 601-488-2079 today and let us help you regain control over your financial future.
Frequently Asked Questions
What is IRS wage garnishment and how does it work?
IRS wage garnishment is a method used by the IRS to collect unpaid taxes directly from an individual’s paycheck. The IRS must send at least three notifications to the individual’s address before initiating wage garnishment.
How can a tax attorney assist in preventing wage garnishment?
A tax attorney can assist in preventing wage garnishment by providing strategies such as setting up an installment plan, exploring an offer in compromise, and offering guidance on appealing or demonstrating financial hardship before the IRS initiates collections. This can help individuals resolve tax issues and avoid wage garnishment.
Can a tax attorney negotiate with the IRS?
Yes, a tax attorney can negotiate with the IRS on your behalf, potentially securing a compromise based on your financial situation.
Can IRS wage garnishment be stopped?
Yes, if you provide the IRS with detailed financial information and explain how the wage garnishment is causing hardship, they may consider stopping it. It is important to establish hardship with specific information.
How long does the IRS wait to garnish wages?
The IRS typically waits at least 30 days after sending a Final Notice of Intent to Levy before garnishing wages. Garnishment can take place about two weeks after the 30 days, so it’s important to take action promptly.