If you owe the IRS money, it’s critical that you do whatever you can to make things right. One thing is for sure: The IRS won’t go away until you pay back every last cent that you owe.
Depending on the circumstances, the IRS may garnish your wages as a means of collecting the money that you owe them. In short, this allows them to take money from your paycheck, thus ensuring that they get paid.
Fortunately, there are ways to stop an IRS wage garnishment. Here are some of your best options:
- Pay off the debt: If you have enough cash on hand to pay the debt, doing so will stop the garnishment and allow you to move past this chapter in your life. If you don’t have enough cash, you can look into other options, such as paying with a credit card or taking out a loan. Many people would rather owe money to a traditional financial institution than the IRS.
- Set up an installment agreement: You don’t necessarily have to pay the money you owe all at the same time. Through an installment agreement, you can pay the IRS one month at a time, just as you would with a loan.
- Negotiate with the IRS: For example, you can make an offer in compromise. If accepted, the IRS will allow you to pay less than what you actually owe. It’s not easy to obtain approval, but it’s worth your consideration.
- Undue hardship: If you can prove to the IRS that paying back your tax debt would cause undue hardship, they may be willing to cancel some or all of the debt. But remember, you must have a good reason for going down this path.
Learning that the IRS is garnering your wages is a tough pill to swallow. Not only does it impact your finances, but it may also embarrass you on a professional level.
Fortunately, there are several options available for stopping an IRS wage garnishment. Once you consider the pros and cons of each one, as they pertain to your situation, you can decide which steps to take.