A garnishment is a means of collecting a monetary judgment against a defendant by ordering a third party to pay money, otherwise owed to the defendant, directly to the plaintiff. Wage garnishments are the most common type and occur when money is deducted from the monetary compensation of an employee. The most common reasons for wage garnishments are to pay off debts related to child support, defaulted student loans, court fines and unpaid taxes. The IRS can impose a levy for unpaid back taxes that can result in wage garnishment. However, you can stop wage garnishments and defend yourself against an IRS levy. In fact, it is your federal right to due process of law before an IRS levy or garnishment can be imposed.
The Fifth Amendment of the Constitution forbids the government from taking the property of an individual without due process of law. This rule applies to an IRS levy. The IRS must provide the taxpayer notice of any incoming levy and an opportunity of a response by the defending party. If the IRS improperly handles your case in any way, you can file a claim and stop irs garnishments. Currently, 43 taxes and many localities impose an income tax on individuals. Federal income taxes range anywhere from 10% to 39.6% of taxable income. The IRS is already taking a huge chunk of your money, you can stop a wage garnishment if you qualify for relief and properly defend yourself.
Another instance in which wage garnishments may be applied is to the payroll of an employer. This would occur if the employer has some sort of federal levy placed against him. This could result in the pay of employees being used to cover the garnishment if the employer does not have enough money in their net pay to cover the fee. It is illegal for an employer to fire an employee to avoid a garnishment. Federal law provides for a fine of up to $1,000 and imprisonment for up to one year on an employer who willfully fires an employee in connection with a garnishment of the earnings of that employee. As an employee, you are protected under law against a garnished employer and can take action.
IRS wage garnishments are not the end of the world. If you qualify, you can stop wage garnishments. Circumstances are different for every individual. But if you are notified of an impending levy, contact a tax attorney or professional and see if you qualify to stop wage garnishments imposed against you.