A wage levy occurs when the Internal Revenue Service orders your employer to withhold a portion of your wages to satisfy a debt you owe. Unlike creditors, the Internal Revenue Service can put a levy on your wages without a court order. But, before the IRS can garnish or wage levy your paycheck they must first notify you of such action by sending you several IRS letters. Those letters are referred to as the IRS Notice of Intent to Levy Wages and the IRS Final Notice of Intent to Levy Wages.
What should I expect from a Wage Levy?
Once you receive a notice of intent to levy you will have 30 days before the levy can take effect. If you do not act within 30 days of the notice, it is likely that the IRS will be contacting your employer and will require them to garnish your wages. If the IRS levies your wages, part or all of your wages will be sent to the IRS each pay period until:
- You make other arrangements to pay your overdue taxes,
- The amount of overdue taxes you owe is paid, or
- The levy is released.
If you have received one of these IRS letters, the good news is that an IRS wage levy can be stopped or lifted if it happens. It isn’t automatic and it requires some work but the sooner you take action, the easier it is to get the levy on your wages resolved. Contact the office of Michael C. Whelan JD CPA to schedule an appointment.