February 08, 2017
When back taxes are owed to the Internal Revenue Service, legal steps can be taken to recover the money. Along with a federal tax lien, one of the favored methods used to recover money from employed people is an IRS wage garnishment. This involves taking a percentage of income each week or month until any unpaid income tax, penalties and interest have been completely cleared. A tax resolution service can stop IRS garnishments through the identification of a more effective way of paying off tax debt.
Although the garnishment of wages can be a source of embarrassment for many employees, you cannot legally lose your job because you owe back taxes to the Internal Revenue Service. The current law does not permit an employer to dismiss you just because you're having your wages garnished. This action is subject to a fine of up to $1,000 or even a prison sentence. Employers must comply with the law, deduct the money from your monthly salary and promptly send payment to the IRS.
Stop IRS Wage Garnishment with an IRS Installment Agreement or Payment Plan
When you owe back taxes, an IRS payment plan provides a way to affordably clear the balance. Although there is no reduction to the principal, a tax resolution service regularly uses an installment agreement to stop IRS garnishments. There is a $52 set up fee, but the payments can be conveniently collected via direct debit each month. This is better than losing 25% of salary through a garnishment of wages.
Offer in Compromise (OIC) to Stop IRS Garnishments
If experiencing financial difficulties, the Internal Revenue Service may be prepared to consider accepting an Offer in Compromise. This involves paying a reduced sum of money to clear all back taxes. There will normally be a $150 application fee. If the Internal Revenue Service’s low income guidelines are applicable, complete IRS Form 656-A to avoid this fee. For additional help you can go to this site https://www.tax-id-number-online.com- irs tax id number.
An OIC will only be considered in certain circumstances. It could be used to stop IRS wage garnishment if the debt is proving difficult to collect, there may have been an error in the assessment or if money is available to clear unpaid income tax, but making payment will result in financial hardship. The offer will typically involve either a lump sum or monthly payment.
Low Interest Personal Loan to Stop IRS Tax Garnishment
When seeking a way to avoid IRS tax penalties and charges, a cheap bank loan could provide the answer. Whether this is appropriate will largely depend upon your credit history and whether or not you're a homeowner. A history of poor credit will make it difficult to borrow money but, subject to equity, it may be possible to get a secured loan and clear any unpaid income tax that way.
Why Use a Tax Resolution Service for Stopping IRS Wage Garnishments?
An IRS garnishment of wages has no defined term so payment continues until the debt and any charges have been completely cleared. Although most of the things a tax resolution service does can also be performed by the individual, if you owe back taxes, you are likely to require expert guidance to achieve a satisfactory outcome. This is particularly true in the more complex cases.
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