Can the IRS Take My Paycheck? The Short Answer: Yes | H&R Block

Yes, the IRS can take your paycheck. It ’ second called a engage levy/garnishment .
But – if the IRS is going to do this, it won ’ metric ton be a storm. The IRS can only take your paycheck if you have an delinquent tax symmetry and the IRS has sent you a serial of notices asking you to pay .
If you don ’ thyroxine answer to those notices, the IRS can finally file federal tax liens and issue levies. In 2017, the IRS issued more than a one-half million recruit notices. Learn how to avoid IRS liens and levies .

The IRS will send a series of notices before taking your wages

Before the IRS levies your paycheck, the IRS must send these notices to your last-known address :

If you get an LT11/Letter 1058, you ’ re at the concluding mistreat before the IRS will start taking your paycheck .
This notification tells you that you can ask for a particular hear ( called a CDP learn ). At the learn, you can ask for a payment agreement or dispute the tax and penalties the IRS says you owe. But don ’ thymine delay. You have to request the hearing within 30 days of the date on the notice. If the IRS doesn ’ deoxythymidine monophosphate learn from you within 15 days after the deadline, the IRS can take your paycheck .
In some cases, the IRS can bypass the CDP detect and go neat to a levy after the comment of purpose. The IRS does this for some federal contractile organ levies, or when it thinks solicitation electric potential is at risk. If this happens, you can still request a CDP hear after the IRS issues the levy .

A wage levy can take up to 25 weeks – but it could be faster

It can take from 11 to 25 weeks from the clock time you get the first base IRS notice asking for requital to when the IRS issues a levy .
But, if you have an IRS tax income policeman ( an IRS employee who collects back taxes and/or pursues back tax returns ), that timeline can speed up significantly.

The IRS can take some of your paycheck

When the IRS issues a recruit, it will send a notice to your employer ( IRS Form 668-W ) requiring the clientele to send part of your paycheck to the IRS .
You ’ ll get down to keep a certain measure of your paycheck. The IRS determines your exempt sum using your file status, pay period and phone number of dependents .
For model, if you ’ re single with no dependents and make $ 1,000 every two weeks, the IRS can take up to $ 538 of your see each pay menstruation. IRS publication 1484 explains how to figure out the exempt sum .
On top of garnishing your wages, the IRS can levy your bank accounts, Social Security income and accounts receivable. The IRS will use the recruit money to pay down your back taxes, but you can ’ metric ton designate the payments toward any finical tax bill .

The levies stop when you get back in compliance

When the IRS issues a wage levy, the levy keeps going until one of these happen :

  • You pay off your tax bill.
  • You set up a payment agreement with the IRS (like a monthly payment plan or currently not collectible status).
  • You prove to the IRS that the levy is creating a financial hardship.
  • You file an offer in compromise.
  • The IRS runs out of time to collect your back taxes.
  • You enter bankruptcy.
  • You prove to the IRS that the levy was wrongful or erroneous – meaning that the IRS levied money that wasn’t yours, or the IRS issued the levy in violation of procedure or law.

once the IRS agrees to release the levy, you can speed up the procedure by asking the IRS to fax the levy free to your employer. otherwise, you ’ ll have to wait for your employer to receive IRS Form 668-D by mail .

Get help from an expert

When the IRS is taking or about to take big portions of your check to pay down your tax beak, it ’ second crucial to act promptly .
A tax professional can help you figure out the best way to resolve your tax poster with the IRS, and deal with the IRS for you to get the levy removed. Learn about H & R Block ’ south Tax Audit & Notice Services, or get help from a trust IRS adept .

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