A wage levy from the IRS may greatly alter your financial situation. Having your wages garnished will make it much more difficult to pay bills and other monthly expenses, therefore, making it hard for you to be financially stable. With the right steps, along with professional assistance, a wage levy can be a temporary situation, and you will be able to recover financially.
These are 7 distinct ways that you can recover from a wage levy by the IRS, and how World Tax and Accounting can help you to secure long-term financial relief from this situation.
1 – Understand the cause of the wage levy:
The first step to recovering from a wage levy is to know the reason for its issuance. Generally, an IRS wage levy is a result of:
- Not paying your taxes.
- Not filing federal taxes.
- Ignoring IRS letters.
- Failed payment arrangements.
Learning about the IRS notices sent to you and the account transcripts will assist you in identifying where the problem originated. Once you know exactly what caused the wage levy, you can begin to pursue the appropriate Tax Resolution services to put a stop to the damage.
2 – File Any Missing Tax Returns Immediately:
If necessary tax returns are not filed, the IRS will not negotiate relief. It demonstrates compliance and good faith to file all pending returns. To be eligible for IRS tax relief programs, you must file even if you are unable to pay the entire amount.
In order to avoid future enforcement actions, professional tax experts guarantee that all filings are accurate, complete, and submitted correctly. If returns remain unfiled, the IRS may file on your behalf, often inflating your tax liability. To understand why this is so dangerous, read our article: What Is a Substitute for Return? And Why It Could Cost You Thousands.
3 – Develop a Financial Plan After the Levy:
It’s critical to strategically rebuild your finances after wages are garnished. A well-defined financial plan ought to comprise, budgeting each month, setting priorities for necessary expenses, cutting back on wasteful spending, and making plans for upcoming tax obligations.
A well-organized plan helps prevent repeated IRS collection actions and establishes the groundwork for recovery.
4 – Request Wage Levy Reduction or Release:
If your wage levy creates a financial hardship for you, then in most cases, it can be released or reduced. The IRS will evaluate your individual situation to determine whether your levy prevents you from paying for your basic living expenses.
With proper documentation and assistance from tax relief experts, you might be able to obtain:
- Release of the levy due to financial hardship
- Temporary suspension of collections
- Reduced garnishment amounts
This single action can grant you immediate financial breathing room. Because levy relief often involves direct communication with an IRS Revenue Officer, it’s critical to understand your boundaries—learn more in our article: What You Can and Can’t Do When Working with an IRS Revenue Officer.
5 – Set Up an Affordable Payment Arrangement:
One way to successfully recover from your tax debt is to establish a payment arrangement with the IRS. Payment arrangements can come in many formats, including the following:
- Installment agreements
- Partial payment agreements
- Long-term structured payment agreements
After it is established, a negotiated agreement will cease additional levies, thus allowing you to pay back your tax debt at a manageable rate. This is a key component of tax resolution services.
6 – Evaluate IRS Tax Relief Programs:
If you can prove your financial inability to pay your past-due taxes to the IRS, then you may qualify for an official IRS tax relief program. Programs may include:
Offer in Compromise (Pay less than the amount owed)
Currently Not Collectible status (relief while not able to pay)
Penalty Abatement (elimination of penalties)
All relief programs have strict guidelines governing their qualification requirements. Using the services of a tax professional will help you improve your likelihood of qualifying for one of them and will also guarantee that every communication with the IRS is handled correctly.
7 – Restore Financial Stability and Avoid Future Levying:
The recovery process is not complete after a levy has been removed. Achieving and maintaining long-term Financial Stability requires:
- Timely filing all required federal, state, and local income tax returns.
- Making timely estimated tax payments as required.
- Continuously monitoring and reviewing IRS communications regarding your business accounts.
- Continuing tax planning on an annual basis.
Working with a tax professional can help you avoid future problems with the IRS, through proactive planning, preservation of your income, and the protection of your Financial future.
How World Tax and Accounting Can Help?
World Tax and Accounting specialize in helping individuals recover from IRS wage levies and regain financial control. Our team provides personalized Tax resolution services, expert negotiation, and comprehensive IRS tax relief solutions tailored to your unique situation. We have the ability to handle the IRS.
If an IRS wage levy has impacted your finances, Contact us today. We will help you to stop the levy, rebuild your finances, and move forward with confidence.