How to Prevent Wage Garnishment Before it Starts?

IRS can be notorious at time when it comes to collecting taxes. If you owe back taxes or unfiled tax returns one of the ways in which they can recover these dues is through wage garnishment. In fact this is the most popular force collection strategy that is adopted by IRS. Your employer must adhere to their instructions or IRS would make them liable for the amount due. In case you wage isn’t garnished you and your employer are immediately sent legal notices. Once the wage garnishment process starts it is very difficult to stop it. So the ideal way to stop wage garnishment is to avoid it in the first place. Here we shall discuss a few ways in which you can stop wage garnishment before it starts.

• Install Payments -There is a policy of the IRS where they allow you to pay back their dues in installments instead of garnishing your wage. This is applicable when you aren't being able to pay the taxes and your outstanding taxes and penalties are less than $50,000. In such a case you can suggest an installment to the IRS. The due taxes and penalties are considered a loan from the IRS. They will charge you a small administrative fee and also interest which is much less than what you pay for your credit cards. You can visit their website and apply for an installment plan online. Once accepted it saves you from the ordeal of wage garnishment.
• Offer in Compromise - This is another way in which you can avoid wage garnishment by the IRS. Here you will need to prove them that you are not in a position to pay the full amount that is due. Along with this you can make an Offer in Compromise (OIC). Once this is settled IRS might revise your taxes and penalties to an amount that you are able to pay. However before you opt for this you need to go through all the terms and conditions carefully and not just try and think of this to be a loophole that you can exploit. There are great chances that your case would be rejected.
• Poverty - You can take this step after you have received your wage garnishment letter and before the garnishment has started. In this case you will need to make a claim that you are too poor to make any payments to the IRS and wage garnishment would deny you the basic necessities of life. In many such cases the IRS would hold up your wage garnishment for some time. However once your situation has improved IRS would come back to haunt you. So this step gives you merely temporary respite if you haven't thought of an alternative.

To avoid wage garnishment and forced collection from the IRS you would need to take advise from a professional tax attorney. He or she will study the minutes of your case and come out with a solution that prevents your hard earned wage from being garnished.

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