If you’re dealing with tax problems, it can be terrifying to have your wages garnished. A wage garnishment is one of the few tactics the IRS might use to collect owed taxes. The IRS can take up to 75% of your pay, which can then cause significant hardship to you and your household. If you’re faced with a wage garnishment, our Sacramento tax relief company can ensure you that bankruptcy is not your only option to stop it. Read on to learn what you can do to prevent the IRS from garnishing your wages.
Respond to the IRS Demand Letter
If you receive a demand letter from the IRS don’t ignore it. The IRS may prefer to receive voluntary payments from debtors rather than deal with the cost and time-consuming paperwork involved with wage garnishments. Use this chance to negotiate a payment plan with the IRS before the garnishment process begins.
Seek State-Specific Remedies
Fortunately in California, you can make a claim of exemption. If you provide proof of economic hardship and show that your income is needed to support your family, you can reduce or eliminate the garnishment.
Object to the Garnishment
File any objections you have to the garnishment, in writing, with the court and request a hearing. The garnishment papers might even contain forms that you can fill out to make a request. Once you file your objection, it will be necessary to attend the hearing, or else the court may overrule your objection and the garnishment will begin.
Even after a garnishment has begun, you can still attempt to negotiate a resolution with the IRS, especially if your circumstances change. For example, if your income tax refund could pay off some of the judgement, you might be able to get the IRS to agree to cancel the garnishment in exchange for a payment to settle the rest of the judgement.
Receive Help From Paramount Tax Relief in Sacramento
Paramount Tax Relief is here to help you handle a wage garnishment situation. Our tax professionals will negotiate on your behalf to set up a payment plan to satisfy the IRS, and to ensure your financial living is not disrupted. If wage garnishment has already been assigned, we can still help. Every case is different, and we will work hard to find the best solution for you!
Contact our Sacramento tax relief company today to schedule a free consultation.