Tax Wage Garnishments

To resolve a tax debt, federal or state authorities may institute garnish wages. Employers are required by law to abide by a garnishment request by the government.  Wage garnishments are levies automatically deducted from wages, salary, commissions, or other payments for personal services, and applied to the tax liability.  Once a garnishment is served and enforced, the garnishment continues until your tax debt is paid in full or other arrangements are made to satisfy the debt, or the time period for collecting expires.

The percentage of money that can be garnished varies widely from state to state and the IRS.  Wage garnishments are more likely if the taxpayer is not actively trying to resolve the debt.  To halt having wages garnished, the taxpayer must work with the taxing authority, by presenting a reasonable resolution and working toward fixing the tax problems.

The IRS can also levy or garnish the following direct payments:

• Federal retirement annuity income from the Office of Personnel Management
• Social Security benefits under Title II of the Social Security Act (OASDI)
• Federal contractor/vendor payments, or
• Federal employee salary and travel payments.

Please contact Larson Financial to get answers specific to your situation.