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I was listening to the radio recently and an advertisement for a tax representation firm said “The IRS means business they will even take your paycheck!”  Well not exactly.  The IRS will issue a wage levy on form 668-W.  The amount the IRS can take is based on a table the IRS sends to your employer which indicates the amount exempt from levy.  For instance, if you are single with one dependent and paid biweekly the exempt amount is $400.  If you are married with 2 dependents paid biweekly the exempt amount is $800. Any amount above the exempt amount is sent to the IRS by your employer.  A wage levy is continuous and happens every pay period. While the IRS won’t take your entire paycheck, it is a bad situation to have part of your paycheck seized every pay day.  There are options to resolve this and get the wage levy released. If the levy creates a hardship and you have no ability to pay, your account can be placed in unable to collect status or you can enter into an installment agreement to pay your tax debt.  There are several options under the IRS Fresh Start Program to get an installment agreement.  You can enter into a streamlined installment agreement or you can pay based upon your ability to pay under the IRS guidelines. There may be other options based upon your situation. We have been helping taxpayers for over 30 years resolve their tax problems and can help you find a workable solution to a wage levy.    

 

 

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