Whenever you owe money to the IRS, there are several things they can do in order to make sure you begin repaying your debt. A common route the IRS will take is by imposing a levy on your personal property, money, or wages. Receiving a levy notice from the IRS is a stressful experience, and you’ll want to make sure you do everything you can make sure the IRS does not actually go through with collection proceedings.
For the purposes of this blog, we’ll be focusing on wage garnishment (i.e. the IRS’ right to seize a percentage of your paycheck) and the ways in which you can fight back against the IRS.
1. Collection Due Process Hearing
If you have received a final levy notice from the IRS, then you have 30 days to request what is called a collection due process (CDP) hearing. Choosing to initiate the CDP hearing process will halt collection proceedings until the process is complete. However, it’s important to note that while this delay the levy, it doesn’t necessarily lift the levy, nor does it erase your tax debts. As expected, you have to win the hearing in order to get the levy lifted and permanently halt collection proceedings while you work to resolve your tax debts.
2. Innocent Spouse Relief
Another valid way of fighting back against wage garnishment is if you have jointly filed taxes with your spouse and believe that the debts which triggered the levy are not your fault. Showing this can be tricky, and so it’s important to work with your tax attorney to gather the proper evidence and put together the best case on your behalf.
3. Financial Hardship
Successfully showing that you are suffering financial hardship as a result of wage garnishment is another way to challenge the IRS’ levy. However, proving the requisite financial hardship is difficult, because you have to be able to show that you will be unable to meet your most basic needs as a result of the levy. As with the other options, your best chance of making sure that this is done right is by working with your tax attorney who can advocate effectively on your behalf.
4. Installment Plans
Although not technically a way of “fighting back” against wage garnishment, installment plans are one of the best and most effective ways of halting collection proceedings and settling outstanding tax debts with the IRS. There are several different types of payment plans available depending on how much debt you have, so it’s important to work with an experienced tax attorney who can help you apply for the plan that best fits your situation.
Contact Boeshaar Law today!
Dealing with the IRS is difficult, and there are lots of rules and regulations you have to be aware of in order to do things right. Fortunately, the IRS wants to work with you to help settle your debt effectively. And, with the help of an experienced tax attorney, you can be sure to get the process started off on the right foot. At Boeshaar Law, we regularly work with our clients to help them settle their issues and debts with the IRS. If you have received a levy notice from the IRS or just want some advice on the ways in which you can go about settling your tax liabilities, then contact us at (206) 899-4860 to speak with a member of our experienced team today!
Robert V. Boeshaar Attorney at Law, LL.M.,PLLC
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