It can be a distressing experience to discover that the IRS has garnished your wages without prior notification from your employer. It is essential to understand your rights and the measures you can take to resolve this situation, as wage garnishment can have a substantial effect on your financial stability.
Understanding IRS Wage Garnishment
Wage garnishment, which is also referred to as a wage levy, is a legal procedure in which the Internal Revenue Service (IRS) directs your employer to withhold a portion of your earnings to satisfy your outstanding debt. The IRS receives the garnished amount directly. This action is typically the consequence of an extended period of non-payment or failure to respond to IRS notices regarding delinquent taxes.
Legal Requirements for Notification
The IRS is obligated to send a “Final Notice of Intent to Levy and Notice of Your Right to a Hearing” at least 30 days prior to the commencement of garnishment. This notice is your final opportunity to resolve your tax debt before the IRS takes action. The employer is also responsible for informing the employee about the garnishment order before withholding any compensation following the issuance of this notice by the IRS.
Steps to Be Taken Immediately
It is imperative that you act promptly if you discover that your wages are being garnished without any prior notification from your employer:
- Confirm the Garnishment: Verify with your payroll department that the deductions are indeed the result of an IRS wage garnishment. Request any documentation they have received from the IRS.
- Documentation Request: Request that your employer provide you with copies of all notices and communications concerning the garnishment. This encompasses the official IRS levy notice that was sent to them.
- Contact the Internal Revenue Service: To verify the specifics of the wage garnishment, you can contact the IRS directly. For assistance, you may contact the IRS on the phone or visit a local IRS office.
- Verify Your Records: Ensure that you have not overlooked any IRS notices by reviewing your personal records. Occasionally, notices may be neglected or misplaced.
Your Rights and the Responsibilities of Your Employer
Employers are required to inform employees of any wage garnishment orders prior to commencing wage withholding. Neglecting to do so may constitute an infringement of your employment rights. Furthermore, the IRS requires that employers provide the employee with a copy of the wage garnishment notice.
How to Address Employer Non-Compliance
The following actions should be taken to address your employer failing to notify you of the garnishment:
- Internal Resolution: Begin by engaging in a conversation with your employer or HR department regarding the matter. Describe the circumstances and the consequences that resulted from the absence of notification. Request a formal explanation and any corrective measures they intend to implement.
- Seek Legal Counsel: Engage in a consultation with an attorney to investigate your legal alternatives. An attorney can assist in determining whether your employer has violated any employment laws and provide guidance on potential remedies, such as compensation for damages.
- Complaint Submission: If your employer’s failure to notify you about the garnishment has resulted in substantial financial or personal hardship, you may have the option to file a complaint with the Department of Labor or your state’s labor department.
Resolving the Wage Garnishment with the IRS
It is imperative to prioritize the resolution of the wage garnishment while addressing the notification issue with your employer. You can take steps to simultaneously resolve your wage garnishment by doing the following:
- Review Your IRS Account: Examine your account to determine the total amount owed, which includes penalties and interest, to understand your tax debt. This information can be accessed by contacting the IRS directly or by logging into your IRS online account.
- Collection Due Process Hearing Request: If you believe that the garnishment is unjust or that you did not receive adequate notification from the IRS, you have the option to request a Collection Due Process (CDP) hearing. This hearing offers an opportunity to contest the garnishment and suggest alternative solutions.
- Investigate Payment Options: The IRS provides a variety of payment options to assist in the resolution of your tax debt and the potential release of the garnishment. You may be eligible for an installment agreement, an offer in compromise, or a currently not collectible status.
- Seek Professional Assistance: A tax attorney can assist you in navigating the intricacies of resolving your tax debt and negotiating with the IRS on your behalf.
Communicating With the Internal Revenue Service
Your wage garnishment can be resolved through effective communication with the IRS. Gather all pertinent documents, such as the garnishment notice, your tax returns, and any correspondence with the IRS.
Prepare to provide an explanation of your financial circumstances and suggest a viable solution. Your case can be supported by documentation that substantiates your income, expenses, and financial hardship. Contact the IRS to initiate the resolution procedure and discuss your options. Communicate in a manner that is plain, concise, and polite.
Preventing Future Problems
To prevent future wage garnishments and ensure that your tax affairs are in order, it is advisable to implement proactive measures. Conduct regular reviews of your IRS account to remain informed about your tax obligations. Establish scheduled reminders for payment due dates and tax filing deadlines.
To prevent penalties and interest, it is crucial to submit your tax returns and pay any outstanding taxes in a timely manner. If you are experiencing difficulty managing your tax obligations or have complex tax issues, it may be beneficial to consult with a tax attorney.
Be sure to respond promptly to any notices from the IRS to resolve any concerns before they escalate into wage garnishment or other collection actions.
Contact Delia Law
While it may be distressing to discover an IRS wage garnishment without prior notification from your employer, it is possible to resolve the situation by understanding your rights and taking prompt action.
Verify the garnishment, discuss the absence of notification with your employer, and focus on resolving your tax debt with the IRS. Delia Law tax attorneys can help secure your financial future. Contact us today to get started.
