Of all the means the I.R.S. use to collect back taxes in New York, one of the most common forms is Wage Garnishment or a Wage Levy. With this type of forced collection, the I.R.S. instructs the negligent taxpayer’s employer to withhold a certain amount of each paycheck to be put toward the tax debt. No matter how good a relationship you may have with your employer, the chances are good that they will obey the I.R.S.’s instructions; if they don’t , they will be held personally accountable for the amount that should have gone to the I.R.S. Wage Garnishment will continue until the tax amount has been collected, plus interest in penalties, or if you settle the entire tax amount in an alternate fashion.
Before setting New York Wage Garnishment in motion, there is a process the I.R.S. must complete and certain requirements met. This is a highly legalized process, which if done incorrectly could mean that you may have grounds for a solid appeal for removal of I.R.S. Wage Garnishment. Until it is resolved, however, expect that your employer will continue to send them a percentage of your paycheck to make sure their company is not implicated.
Wage Garnishment is an extreme measure to forcibly collect taxes and is usually a last resort on the part of the I.R.S. Typically, they will put a Wage Levy into effect after repeated failed attempts to contact you and resolve the issue. It is much simpler for them to resolve the tax debt in another way, which may not even require you to pay off your back taxes in full. By approaching them first you may be able to arrange for an Offer in Compromise or a payment plan. Ignoring the problem will only compound it; don’t let the situation go so far that wage garnishment is required. If your wages are still insufficient to settle your debt, the I.R.S. will not hesitate to start seizing physical assets, including motor vehicles and even your home.
There are a few ways to arrange for removal of an I.R.S. Wage Garnishment in New York. One is to settle your debt with the I.R.S. outright, if you have the means to do so. The other is to prove financial hardship as a result of the levy, or potential financial hardship if they continue to take money from your paycheck. You also have the right to appeal a Wage levy, which is recommended with the guidance of a tax professional. The last option is to remain passive and allow the I.R.S. to take what it needs from you until your debt is paid off, if you have the means to support yourself in the meantime.
These may seem like simple solutions, but they are difficult individual taxpayers to carry out without the help of an experienced tax professional. New York Wage Garnishment is a potentially grave situation that can put you and everything you have at risk, usually the end-of-the-line measure the I.R.S. enacts after trying all other alternatives. By the time a Wage Levy is put into place, the I.R.S. will probably be skeptical about your desire to resolve your tax issues by working with them. By enlisting the assistance of a tax professional, you are communicating to the I.R.S. that you are actually dedicated to settling your debt. They in turn, will be much more positive about working with you than they might have been had you approached them on your own.
To arrange for a removal of Wage Garnishment, find an experienced tax professional to help you, so that you and your assets are protected.