Facing an IRS tax garnishment can be one of the most frightening experiences in a person's life. When IRS garnishment happens, you will be pushed into financial hardship since the IRS can take major part of your salary directly from your employer and also can seize your assets. It doesn't matter how much you owe, you should reclaim your life into the right track and this article will lay out the steps you need to take.
What kind of IRS garnishment is it?
If it is a bank garnishment, the IRS will seize your bank accounts and take all money up to the total amount you are obligated to repay. Initially your bank will retain the levied money for 20 days before releasing it to the IRS, so you have to take action within this time to get your money back.
If it is a wage garnishment, the IRS will release it only when you pay back taxes. If this not possible, do whatever options available to you to stay on top of your filing. Since an IRS wage garnishment will only leave you with a couple hundred dollars a week to live on, it is a priority to get the garnishment removed as soon as possible.
Exactly who should you contact?
In order to get it back, contact the person who issued the garnishment and get all the necessary information from them. Or contact the IRS at their toll free number. Anyone who answers can help you. Contact the revenue officer if they're the ones who issued the IRS garnishment or if your case is assigned to them.
What should you say?
The fact is that there isn't much to talk about. Tax Garnishments are serious business and are best left to tax attorneys experienced in negotiations. The main reason: the IRS will look for you to pay out an amount higher than what you can afford to pay. You have to understand, the IRS works for the government. So never assume that they'll help you in some way. They least worry about your financial situation and will always try to make you pay them as much as possible --- putting your other obligation necessary to your well-being at risk.
Obviously, not everyone knows a great tax attorney who specializes in IRS garnishments. So here are some general rules. Agree with only what you can pay. There is nothing wrong to ask for a taxpayer advocate if you find any discrepancies. A release of a levy is typically temporary. This means you will need what is known as a 'collection alternative' with the IRS in order to resolve your case. Listed below are the some of the collection alternatives.
1) IRS settlement or Offer in Compromise
2) Hardship request
3) IRS payment plan
4) Filing Chapter 7 bankruptcy
It is really essential that during this reprieve from the IRS garnishment, that you work towards a long- term plan to resolve your tax debt. If you fail to do this, the IRS will issue yet another garnishment and you'll have a hard time getting it released.