More specifically, this situation leads to a wide range of penalties, one of which is wage garnishment. This involves the IRS taking a portion from the taxpayer’s regular paychecks until their tax debt is fully repaid.
This penalty can affect any taxpayer, including independent contractors. In the case of the latter, the IRS may instead choose to collect income in the form of a tax levy or by garnishing your property. Naturally, regardless of how the IRS chooses to garnish your assets, this situation still leaves you financially vulnerable. That’s why it’s best to try and terminate or contest wage garnishment if you qualify to do so.
Once the IRS notifies you about an impending wage garnishment, you should take action immediately. Failing to find a solution will lead to your wages being garnished until one of the following scenarios occurs:
Working with experienced tax professionals can ensure your ability to figure out the best next step for your situation.
Working with a tax relief firm offers far more advantages than negotiating with the IRS on your own. A professional can utilize their understanding of tax law and tax issues to work with your state government or the IRS and find the best wage garnishment solution for you.
Rocket Tax Relief has the knowledge and tools needed to assist with a broad range of tax issues. No matter the nature of your employment, we’ll help you gain the best solution for tax relief. Just call us at 800-542-4718 or fill out our online form and we’ll get in touch with you to provide more information. We also offer 15-minute tax consultations at no cost.