April 27, 2018

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Can the IRS Garnish Wages?

How To Choose A Tax Relief Agency

Protecting Yourself From Tax Relief Scams

Questions To Ask Tax Relief Agencies

Why Would The IRS Settle My Tax Debt?


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Can the IRS Garnish Wages?

Few agencies can strike fear into the hearts of Americans in quite the same way the IRS does.

Rumors abound when it comes to the long-arm of the IRS. One of the biggest rumors is that if taxpayers make a mistake on their tax return, the IRS will audit them. Another popular rumor is that the IRS can send you to jail for minor tax infractions.

While it’s true that making outrageous claims on your tax returns, such as donating 50 percent of one’s income to charity, will often cause the IRS to examine your return more closely, taxpayers should not be afraid to claim legitimate deductions for fear of being audited.

However, one of the powers the IRS does possess is the ability to garner wages for past-due taxes. Like any other creditor, the IRS has the ability to recover what is owed. However, unlike other creditors – which must first obtain a court judgment before garnishing wages – the IRS is not required to first get a judgment before it may garner taxpayers’ wages.

Taxpayers who are about to have their wages garnished will first receive notice from the IRS that the action is about to occur. That notice will come in the form of a written document which contains the amount owed to the IRS. The IRS is required to itemize the full amount, indicating how much is the actual tax owed, how much is penalties for failure to pay and how much of it is interest.

The notice also will include a date by which payment in full is expected. If payment is not received by the date specified on the notice, the IRS will then take action to collect the monies owed. Actions they are permitted to take include the seizure of assets, the placing of liens on a taxpayer’s property, garnishing wages or claiming future tax refunds.

While federal law limits the amount of money creditors can take directly from a person’s wages, the IRS is not subject to those same guidelines. Tax code simply dictates what the IRS must leave taxpayers whose wages they garnish. Basically, a taxpayer will be left with only what the IRS deems is necessary for the payment of their basic needs.

So what happens if you are one of those taxpayers who owe a significant amount in back taxes? Can you automatically expect to have your wages garnished?

The good news – if there is perhaps ever any good news when the IRS is involved – is that wage garnishment is usually a last resort for the IRS. Taxpayers who attempt to work with the IRS to pay what they owe will find the process a lot easier than having their wages garnished.

One of the most popular options is for taxpayers to enter into what is known as an installment agreement with the IRS. Taxpayers who agree to an installment repayment plan are seen as being in compliance, and the IRS is less likely to take a harsher course of action – like wage garnishment – to recover back taxes. The only down side to an installment plan is that interest continues to accrue on the total amount owed while taxpayers are making payments, similar to what happens when a person makes only the minimum payment on a full credit card balance.

Those who are facing the possibility of wage garnishment from the IRS may wish to consult a reliable tax relief agency or professional legal counsel to determine which option is best for them.

Australian Government Dumps Planned Tax Hike From May Budget

Malcolm Turnbull's government is dumping a planned tax hike, giving a clear signal it will use next month's budget to offer relief to Australians ahead of an election due next year. Treasurer Scott Morrison on Thursday confirmed he's shelved a 0.5 ...

Published:  Wed, 25 Apr 2018 17:15:00 GMT

Missing in mayor's 'fairest big city' budget: Property tax relief

CITY HALL -- In his quest to make New York City the "fairest big city in America," missing in Mayor Bill de Blasio's more than $89-billion fiscal 2019 executive budget released Thursday: Property tax relief for New York City residents. Highlighted in the ...

Published:  Thu, 26 Apr 2018 14:17:00 GMT

Yingling Legislation to Provide Income Tax Relief in Response to Federal Tax Plan Capping Property Tax Deductions Passes State House

Rep. Yingling discusses his Flood Victims Income Tax Credit Law at a past town hall. Rep. Yingling discusses his Flood Victims Income Tax Credit Law at a past town hall. (Posted by State Rep. Sam Yingling, Community Contributor) Community Contributor State ...

Published:  Tue, 24 Apr 2018 09:27:00 GMT

Delaware Senate Approves Casino Tax Relief Legislation

DOVER, Del. --- Delaware's Senate has approved legislation that would reduce taxes and fees at the state's casinos. Senators voted 17-3-1 to lower taxes on slots and table games. The legislation now heads to the House. The legislation has bipartisan support.

Published:  Thu, 26 Apr 2018 16:39:00 GMT

Legislative task force to look at raising grocery tax, adding EITC relief for low-income workers

Will this end up being a good deal for lower-income Arkansans That depends on the details. Given the body charged with coming up with those details, I'd say we plenty of reason to be leery. The task force calls itself "Tax Reform and Relief," but the ...

Published:  Thu, 26 Apr 2018 14:27:00 GMT

Property owners deserve tax relief

Property owners continue to shoulder the primary funding for public schools and local governments, as they have since 1683 when William Penn and 13 members of the Provincial Council gathered in Philadelphia to impose a public tax upon land. Approximately ...

Published:  Wed, 25 Apr 2018 23:15:00 GMT

BFI Responds To Labour's Damning Diversity Verdict And Call For Inclusion Riders With Film & TV Tax Relief

"But our industry needs to be more representative and inclusive on and off screen," she continued. "This is one of the reasons why the BFI made diversity and inclusion front and centre to its five year plan for film BFI2022, and why the BFI Diversity ...

Published:  Wed, 25 Apr 2018 06:42:00 GMT

Tax relief package and the state budget still in talks, improving Iowa's air quality, EPA announces grants: Iowa Capitol Digest, April 24

ADJOURNMENT PROSPECTS: Senate Majority Leader Jack Whitver, R-Ankeny, said Tuesday House and Senate leaders are continuing to meet with the governor's office on crafting a tax relief package and the state budget. "I had a great meeting with the speaker ...

Published:  Tue, 24 Apr 2018 16:42:00 GMT

Smarter Tax Relief For Entrepreneurs

All governments recognise the value of small and medium-sized enterprises to the wider economy, which is why they offer tax reliefs, amongst other support, to help such businesses grow. But where should those reliefs be concentrated to generate the ...

Published:  Mon, 23 Apr 2018 02:57:00 GMT

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