IRS Wage Garnishment
An IRS levy on a taxpayer's wages, requiring the employer to send a portion of each paycheck directly to the IRS until the debt is paid or the levy is released.
Detailed Explanation
IRS wage levies are issued under IRC Section 6331 after a Final Notice of Intent to Levy and 30-day pre-levy hearing rights. The amount exempt from levy is small, often leaving as little as a few hundred dollars per pay period. Release procedures include filing missing returns, entering an installment agreement, qualifying for currently not collectible status, submitting an offer in compromise, or proving immediate financial hardship. Once released, the IRS issues Form 668-D to the employer.
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Learn about IRS & State Tax ResolutionRelated Terms
Federal Tax Lien
A statutory claim by the IRS against all property and rights to property of a taxpayer with assessed but unpaid federal tax debt.
IRS Installment Agreement
A formal payment plan with the IRS that allows taxpayers to pay tax debt over time, monthly, instead of in a single lump sum.
Offer in Compromise (OIC)
An IRS program that allows qualifying taxpayers to settle tax debt for less than the full amount owed, when full payment would create a financial hardship.
CP2000 Notice
An IRS notice proposing changes to a tax return based on information returns (W-2s, 1099s) that do not match what the taxpayer reported.
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