IRS Tax Relief and Resolution

Tax liens are confusing and they are made that way thanks to the federal government. It is important to understand that when a tax lien occurs an issuance of a Notice of Federal Tax Lien is sent to you by certified mail. Don’t get this confused with a Notice of Intent to Levy or the Act of Levy.

A Notice of Intent to Levy must be sent to the individual at least 30 days before the levy occurs. However, a Notice of Federal Tax Lien is received most often after the tax lien is already in place. The tax lien is the government’s way of ensuring the taxes are paid on property and the tax levy is when that property is actually taken.

Many people are confused when it comes to tax liens and tax levies and when they receive anything from the IRS via certified mail they tend to become quite fearful and stressed. Luckily, there are ways to handle the IRS in situations such as these and simply because you have receive a Notice of Federal Tax Lien or an Intent to Levy mailing does not mean that you have no options.

Of course, you won’t want to be alone in this situation and having someone by your side to help you is always reassuring. With Professional Tax Care you will be able to ensure that your interests are put first.

When a debt goes unpaid a creditor may be able to obtain a court order for wage garnishment. This means that a portion of the employee’s salary will be deducted from his/her paycheck until the debt is repaid. According to federal law, no more than 25 percent of an individual’s disposable income may be garnished. Any type of debt may result in a wage garnishment, but the most common reasons for this to happen are when taxes or child support goes unpaid. Other reasons include defaulted student loans, unpaid court fines, and other monetary judgments.

When the court order is approved for a wage garnishment then it will be served on the individual’s employer. The employer must then comply and pay the required amount of the employee’s income to the garnishment and the rest to the employee. Sometimes when an employee has multiple garnishments then the employer must pay them in the correct order. This means all federal garnishments are pay first, then local garnishments, and ultimately any garnishments that related to credit cards or other debt. There are four states that do not allow wage garnishment for any other reason that is not for child support, taxes, student loans, or court ordered fines. These states include South Carolina, Pennsylvania, North Carolina, and Texas. Other states have a lower threshold than 25 percent for garnishments and still other states won’t allow garnishment at all if the affected individual provides more than half of the financial support to a child.

There are lots of things that affect wage garnishments and many times when you are faced with this you can avoid it with a little professional help. Professional Tax Care can help you with this situation and help you avoid wage garnishment. Simply contact us and let us help you.