Wage Garnishment Help in Bethesda

& Finding a Wage Garnishment Lawyer

If your tax filings were incomplete and you owe back taxes to either the IRS or the Comptroller of Maryland, it’s crucial not to delay addressing the issue. Failure to act promptly could result in substantial penalties with serious implications. Both the IRS and the Comptroller of Maryland possess various means to pursue the recovery of outstanding tax debts, some of which could severely impact an individual’s financial well-being.

Having an experienced tax attorney by your side can prove invaluable upon receiving a Notice and Demand for Payment from either the IRS or the Comptroller of Maryland. They serve as a vital shield against forceful debt-collection strategies. Depending on the outstanding amount and your history of filings and communication with these entities, you might encounter substantial collection measures, such as wage garnishment.

What Is Wage Garnishment?

Wage garnishment serves as a method of debt collection that the IRS or the Comptroller of Maryland can implement against a taxpayer who has been notified of an outstanding debt but hasn’t settled it entirely. This process involves the agency responsible for collecting the tax debt deducting a portion of the taxpayer’s paycheck. The agency seeking wage garnishment will collaborate with the taxpayer’s employer, who will then deduct the approved garnishment amount from the employee’s salary until the debt is fully repaid.

Usually, when a creditor needs to take legal action against a debtor who cannot pay their debts, they must first seek approval from the court to initiate wage garnishment. However, unlike other creditors, the IRS and the Comptroller of Maryland are not required to wait for court approval. Once either of these agencies has started the process of wage garnishment against a taxpayer, it becomes exceedingly challenging for the taxpayer to halt the garnishment until their debt is completely settled.

Why Is It Such a Severe Collection Action?

Many creditors hold the power to pursue wage garnishment against debtors for unpaid debts, though the associated court procedures frequently prove lengthy. Normally, individuals in debt have some flexibility to address their outstanding debts or seek alternative resolutions. However, as the IRS and the Comptroller of Maryland are not bound by these procedures, individuals facing wage garnishment from these entities must promptly contest the decision or seek relief from the garnishment proceedings.

There is another notable difference in how government collection agencies and private creditors calculate garnishments. While private creditors must adhere to state and federal regulations that restrict the percentage they can deduct from a debtor’s wages, the IRS and the Comptroller of Maryland operate differently. They determine the amount a taxpayer can keep from each paycheck based on factors like the taxpayer’s claimed W4 exemptions and the frequency of their paychecks, rather than following a fixed formula.

Wage garnishment presents a considerable obstacle for many Bethesda taxpayers, who frequently underestimate the magnitude of deductions the IRS or the Comptroller of Maryland may apply to their earnings. It’s common for individuals dealing with wage garnishment stemming from federal or state tax responsibilities to discover that their income is inadequate to meet basic living expenses. This predicament can rapidly evolve into a serious financial hardship for the taxpayer, potentially triggering further collection actions from private creditors they are unable to repay.

What to Do When You Face Wage Garnishment in Bethesda, Maryland

Both the IRS and the Comptroller of Maryland employ aggressive tactics when pursuing wage garnishment, and the impact can be swift once the process begins. When facing wage garnishment due to unpaid federal or state taxes, seeking guidance from an experienced tax attorney is paramount. They can assess your situation and provide you with the best available options and remedies.

You have the right to challenge a wage garnishment action initiated against you, whether at the state or federal level. Additionally, there are alternative avenues to satisfy your tax debts without undergoing wage garnishment. However, navigating these options without legal representation can be exceptionally challenging due to the complexity of tax regulations and stringent deadlines. A skilled tax attorney can efficiently guide you through the process, whether it involves appealing the garnishment or exploring alternative solutions.

If you’re unable to pay your tax debt in full to prevent wage garnishment, your tax attorney may assist you in demonstrating genuine financial hardship. This could qualify you for “Currently Not Collectible” status, halting collection efforts. Alternatively, your attorney can negotiate an Installment Agreement, enabling you to repay your tax debt gradually rather than in a single, unmanageable payment.

Another potential solution is an Offer in Compromise, allowing you to settle your tax debt for less than the full amount owed. However, this process is intricate, and it’s crucial to have legal representation to avoid inadvertent omissions that could lead to legal consequences.

A Tax Attorney Can Help

Act promptly if you’re facing wage garnishment due to unpaid taxes. The IRS and the Comptroller of Maryland are relentless in pursuing overdue tax debts, and delaying action will only worsen the impact of wage garnishment, often affecting individuals for years.

Reach out to Delia Law without delay to arrange a consultation with a skilled tax attorney who can assist you in tackling your wage garnishment issues with the IRS or the Comptroller of Maryland. With our team’s wealth of experience in providing wage garnishment assistance in Bethesda, Maryland, we can carefully evaluate your circumstances and guide you through your available options.

Maryland-Specific Tax Laws

bethesda-maryland-building-night

Maryland has a progressive tax system, which means the higher an individual’s income is, the higher the percentage they will pay in taxes. Maryland has special tax benefits for military retirees, lower income families, those paying for childcare, as well as for those aged 65 and older.

There are four types of taxes in Maryland:

  • State income tax. The state tax rate for personal income tax begins at 2%. This is applied to anyone making under $1,000 per year in annual income. It increases up to 5.75% for anyone making over $250,000 annually. This is one of the lower state income tax rates in the United States.
  • Local income tax. There is also a local income tax, which is levied by counties and cities. For convenience, these are withheld during income tax season by the state, and they vary based on the locality. For example, if you live in Allegany County, you paid a .0305 tax rate in 2021. This differs from residents of Baltimore County, who had a .0320 rate. It is important to note that this income is based on the county you live in, not where you work.
  • Sales tax. With each purchase in Maryland of a good or service, a 6% sales tax is automatically applied. This does not include every purchase. Groceries, prescription drugs, and gasoline are a few examples of items not subject to sales tax. However, a business is required to collect a 9% tax on any alcoholic beverages sold.
  • Property tax. You must pay property taxes in Maryland as well, and the tax rates vary by county. The average effective tax rate is 1.06%. While this might seem low, it is balanced by the high property values in the state. The median home value in Maryland is currently over $400,000 and varies based on proximity to the city of Maryland and other populated areas.
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