Understanding IRS Wage Garnishments for Phoenix, AZ Taxpayers

When dealing with unpaid tax debts, one of the most significant enforcement actions the IRS can take is wage garnishment. This occurs when the IRS directly takes a portion of your paycheck to satisfy your tax liabilities. If you’re a taxpayer in Phoenix and have received a wage garnishment notice, it’s essential to act quickly and understand your options.

What Is IRS Wage Garnishment?

Wage garnishment is a legal mechanism the IRS uses to collect unpaid taxes by taking a percentage of your wages directly from your employer. Unlike other creditors, the IRS doesn’t need a court order to begin garnishing your wages. Once a garnishment is in place, it can severely impact your financial situation, as it reduces your take-home pay until the debt is fully repaid.

How Much Can the IRS Garnish?

The amount the IRS can take from your wages depends on factors such as your filing status and the number of dependents. The IRS leaves a small portion of your income to cover basic living expenses, but this amount may be significantly less than what you need to cover your monthly bills.

For example, the IRS uses a table that specifies how much of your paycheck is exempt from garnishment. In many cases, a significant portion of your wages could be taken, which can make it challenging to meet your financial obligations.

Steps to Take if You’re Facing Wage Garnishment

If you’ve been notified of a wage garnishment, there are steps you can take to reduce or stop it:

1. Contact the IRS Immediately: Ignoring a wage garnishment notice will only make things worse. You need to act fast by contacting the IRS or hiring a tax professional to do so on your behalf.
2. Negotiate a Payment Plan: One way to stop wage garnishment is by entering into a payment plan, such as an installment agreement, with the IRS. This allows you to pay off your tax debt over time in manageable amounts.
3. Apply for an Offer in Compromise: If you’re unable to pay the full amount owed, you may qualify for an Offer in Compromise, which allows you to settle your tax debt for less than what you owe.
4. Prove Financial Hardship: If wage garnishment causes significant financial hardship, you can request Currently Not Collectible (CNC) status. This temporary relief will pause garnishment and other collection efforts until your financial situation improves.
5. Seek Professional Help: Wage garnishment can be complex and intimidating. Consulting with a tax resolution specialist can provide clarity and help you explore the best option for your situation.

Protecting Yourself from Future Garnishments

Preventing wage garnishment starts with addressing unpaid tax liabilities as soon as possible. Filing your tax returns on time, setting up payment arrangements, and seeking professional advice are key steps to avoid garnishment and other enforcement actions like liens or levies.

Why Choose Hockett Tax Resolution for Your Wage Garnishment in Phoenix?

Expert Guidance: Jeff Hockett has been at the forefront of tax resolution since 1993. His deep understanding of the intricacies of tax laws ensures that every client’s case is handled with the highest level of professionalism and personalized care.

Proven Track Record: As a member of the NATP and ASTPS, Jeff has a long-standing history of successfully negotiating with the IRS on behalf of his clients. His strategic approach to tax problems has helped many reduce their tax liabilities significantly.

Client-Centered Approach: At Hockett Tax Resolution, we understand the stress and anxiety that tax issues can bring. Our firm is built on trust, integrity, and a commitment to achieving the best possible outcome for our clients.