You’ve probably heard that someone’s wages are deducted as a result of them owing money to the government. Those deductions are known as wage levies. Unsurprisingly, matters can become very complicated when the government starts garnishing people’s wages, and tax attorneys may have to get involved. The government may even commit mistakes that prove costly for taxpayers. Continue with the rest of this article to learn more about wage levies and how to avoid them.
How Does a Wage Levy Work?
Upon discovering and proving that you owe the government some money, you can expect the IRS to come calling so they can garnish your wages. The government entity taking money out of your paychecks is not always the IRS. State treasures can also take on that role.
Wage levies will continue until you either pay off your debt or set up a payment plan that doesn’t involve salary deductions. You can also get a wage levy released if you prove it hinders you from paying for basic living expenses.
You can request for a portion of your salary to be exempted from these deductions if you have dependents. The amount exempted from deduction will be based on complex calculations. Ask your tax attorneys to handle those calculations to ensure you are not paying more to the government than required.
Does Government Impose Incorrect Wage Levies?
Due to your working or close relationship with an individual who has run afoul of Uncle Sam’s tax laws, you may have firsthand experience of getting a wage levy. Unfortunately, it’s a wrongful levy claim, and money is undeservedly taken out of your hard-earned paycheck. The government is still susceptible to errors, so errors like this can and have happened.
What to Do Next?
What should you do if the government incorrectly deducts money from your paycheck? Your initial course of action must involve contacting an attorney. Tell your attorney what happened and let them sort out what to do next.
You will likely have to file a wrongful levy claim with the IRS. Previously, the time limit for filing a wrongful levy claim against the IRS was only nine months, according to our experts. Thankfully, changes to tax law now give claimants up to two years to file that claim.
Tax issues can be nightmarish, but incorrect wage levies are even more troublesome. Don’t neglect a matter like this for long. Hire the expert tax attorneys at Michael C. Whelan JD CPA and file a wrongful levy claim so you can take back your hard-earned money.