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Almost everyone grumbles during tax season when they have to go through all of their financial paperwork and make sure their information is correct before filing their forms with the IRS. It is common for that grumbling to become more pronounced when individuals find out that they owe more taxes. For some, owing taxes can be a significant burden.
You may be among the many people who have not been able to meet their tax obligations. You may face other financial issues that have resulted in an inability to pay, and though you want to get your affairs in order, you may not know how. Now, your situation seems even more dire because the IRS has started garnishing your wages.
What is wage garnishment?
Wage garnishment or levying your wages is a tactic that the IRS can use in efforts to collect on unpaid tax debt. Typically, the IRS will make other attempts to collect on the balance before taking this type of action. Essentially, when an outside party garnishes your wages, a portion of each paycheck will automatically go to that party rather than being included in your check. As a result, the amount you receive for the work you performed can be much less than you anticipated.
The IRS may not take the entirety of your paycheck depending on the amount that is exempt. Your employer should receive a form from the IRS that he or she should fill out to determine the exempt amount. You must complete a Statement of Dependents and Filing Status form and give it back to your employer within three days so that he or she can provide the necessary information. If you do not return the form, the information will be filled in for you according to IRS standards.
Is all your income affected?
Your regular paychecks will face garnishment of the determined amount excluding the exemption. However, if you receive bonus pay, the exemption does not apply, and the IRS could take the entirety of the bonus. As you can see, if the IRS levies your wages, you could face additional financial issues.
You may feel as if you are out of hope if the IRS directly takes your funds, but you still have options for addressing your situation. Contacting a Missouri tax law attorney may help you understand your available options. This legal professional could go over your specific information and determine how you could stop garnishment and get your affairs back on track.