Chat with us, powered by LiveChat G-BVGYQW18NJ
top of page

Understanding IRS Wage Garnishment and Asset Seizure

Understanding IRS Wage Garnishment and Asset Seizure

The U.S. government has vested the Internal Revenue Service (IRS) with the responsibility of tax collection and ensuring compliance.

If a taxpayer defaults on their tax obligations, the IRS can take several actions to collect the debt, including wage garnishment and asset seizure.

Wage garnishment is a legal process by which the IRS can require an employer to withhold a portion of an employee's wages and send it directly to the IRS. The amount that can be garnished is limited by law, and certain types of income are exempt from garnishment.
Asset seizure is a more drastic measure that the IRS can take to collect a tax debt. The IRS can seize a taxpayer's property, such as bank accounts, vehicles, and real estate. Before the IRS can seize a taxpayer's property, it must provide them with notice and an opportunity to challenge the seizure.
Due Process Safeguarding Taxpayer Rights

The IRS is required to follow certain legal procedures when collecting taxes. This is known as due process.

One of the most important due process rights is the right to a hearing. If a taxpayer disagrees with the IRS's decision to garnish their wages or seize their property, they have the right to request a hearing with an IRS appeals officer. At the hearing, the taxpayer can present evidence and arguments in their defense. The appeals officer will then make a decision on whether to uphold the IRS's action.

Navigating Payment Alternatives

There are a number of payment alternatives available to taxpayers who are facing wage garnishment or asset seizure. These include:

Installment agreement: This is a payment plan that allows the taxpayer to pay off their debt over time.
Offer in compromise: This is a settlement agreement in which the taxpayer agrees to pay less than the full amount of their debt.
Temporary delay: The IRS may agree to temporarily delay collection activities if the taxpayer is experiencing financial hardship.
Expert Advice: Steps to Protect Yourself

If you are facing wage garnishment or asset seizure, it is important to take steps to protect yourself. Here are some tips:

Stay updated on your tax situation. Make sure you are aware of all the notices and letters you receive from the IRS.
Respond promptly to any IRS correspondence. Ignoring IRS letters can make the situation worse.
Consult with a tax professional. A tax professional can help you understand your rights and options and develop a plan to resolve your tax debt.

bottom of page