Wage Garnishment Help in New York City

& Finding a Wage Garnishment Lawyer

If you’ve mishandled your tax filings and find yourself owing back taxes to the IRS, it’s crucial not to delay taking control of the situation. Failure to address it promptly could result in significant penalties with serious repercussions. Both the IRS and the NYS Department of Taxation and Finance have a range of methods at their disposal to recover unpaid tax debt, some of which can severely impact an individual’s financial well-being. Depending on the amount owed and your history of interactions with these agencies, you may face severe collection actions, including wage garnishment.

Receiving a Notice and Demand for Payment from the IRS or the NYS Department of Taxation and Finance can be daunting, but having an experienced tax attorney by your side can make all the difference. They serve as your first line of defense against aggressive debt-collection tactics and can provide valuable guidance and representation during this challenging time.

What Is Wage Garnishment?

Wage garnishment serves as a method of debt collection that the IRS or the NYS Department of Taxation and Finance may employ against a taxpayer who has been notified of an unpaid debt but is unable to pay it in full. This process entails the agency collecting the tax debt deducting a portion of the taxpayer’s paycheck. The agency initiating wage garnishment will collaborate with the taxpayer’s employer, who will deduct the approved garnishment amount from the employee’s paycheck until the debt is repaid.

Typically, when a creditor seeks to pursue legal action against a debtor who cannot pay their debts, they must seek approval from the court to initiate wage garnishment. However, the IRS and the NYS Department of Taxation and Finance are exempt from this requirement. Once either of these agencies has commenced wage garnishment action against a taxpayer, it becomes exceedingly challenging for the taxpayer to lift the garnishment until their debt is settled in full.

Is Wage Garnishment Serious?

Numerous creditors have the authority to pursue wage garnishment against debtors for unpaid debts, but the court process required for most of them is lengthy. Typically, individuals in debt have some flexibility to address the outstanding debt or secure an alternate resolution. However, since the IRS and the NYS Department of Taxation and Finance are not bound by this requirement, a taxpayer facing wage garnishment must act swiftly to challenge the garnishment determination or obtain release from the wage garnishment action.

Another notable distinction between government collection agencies and private creditors is their approach to calculating garnishments. Private creditors are constrained by state and federal laws, which limit the amount they can deduct from a debtor’s pay. In contrast, the IRS and the NYS Department of Taxation and Finance do not adhere to this formula. Instead, they calculate how much a taxpayer may retain from each paycheck based on factors such as claimed W4 exemptions and paycheck frequency.

Wage garnishment poses a significant challenge for many New York City taxpayers because they are often unprepared for the extent of deductions that the IRS or the NYS Department of Taxation and Finance may impose on their paychecks. It’s not uncommon for taxpayers facing wage garnishment for federal or state tax debts to be left with insufficient funds to cover basic living expenses. This situation can easily lead to a compounded financial crisis for the taxpayer, potentially triggering further collection efforts from private creditors they are unable to repay.

What to Do About Wage Garnishment in New York City, New York

Both the IRS and the NYS Department of Taxation and Finance are aggressive when pursuing wage garnishment. The process doesn’t take very long to start affecting your life if you are in this situation. One of the best things you can do when faced with wage garnishment for unpaid federal or state taxes is to contact an experienced tax attorney who can help you determine your options and the best available remedies for the situation.

You have the right to appeal a wage garnishment action against you at the state or federal level. There are also some alternate remedies available that may help you satisfy your tax debts without being subject to wage garnishment. However, attempting to pursue any of these options without an experienced legal advocate on your side is incredibly difficult. Navigating tax regulations is exceedingly complex and subject to tight deadlines. An experienced tax attorney can help you pursue an appeal or alternative to wage garnishment quickly and effectively.

If you are unable to pay your tax debt in full to prevent wage garnishment, your tax attorney can potentially help you prove that you are experiencing legitimate financial hardship. Such a hardship would explain that it is impossible for you to repay your tax debt, qualifying you for “Currently Not Collectible” status. It’s also possible for your attorney to negotiate an Installment Agreement on your behalf, which allows you to repay your tax debt over time instead of paying a lump sum you cannot afford.

Another option is an Offer in Compromise, a legal procedure that could result in you settling your tax debt for less than you actually owe. Doing so is a complex process, so it’s vital to have an attorney assist you in the creation of your Offer in Compromise to avoid potential criminal penalties for perjury if you leave out key information.

An Experienced Tax Attorney Can Help

Don’t delay if you’re facing wage garnishment for unpaid taxes. Both the IRS and the NYS Department of Taxation and Finance aggressively pursue unpaid tax debts, and the longer you wait, the more severe the effects of wage garnishment will become. Many individuals whose wages are garnished for unpaid taxes feel the repercussions for years.

Contact Delia Law today to schedule a consultation with an experienced tax attorney who can assist you in addressing your wage garnishment issues with either the IRS or the NYS Department of Taxation and Finance. Our team has extensive experience providing wage garnishment assistance in New York City, New York, and can thoroughly evaluate your options.

New York-Specific Tax Laws

new-york-city-skyline-statue

New York residents are required to pay taxes on income that was earned as well as for federal taxes. In fact, some people who don’t even live in New York must pay state taxes. If you lived elsewhere but acquired the money through a source in New York, you must pay state taxes on that income.

There are four main types of taxes in New York:

  • State income tax. New York State has a graduated income state tax, which means your tax rate increases as your income increases. The state’s tax rates range from 4% to 10.90%. For example, if you make under $8,500 annually, you will only be subjected to a 4% tax rate. However, if you make $25,000,001 and over, you are now facing the higher end of the state’s tax bracket at 10.90%.
  • Local tax. The local tax is a county-specific tax, and the rates also differ based on income. For example, in Tompkins County, the local tax rate is 4%. In contrast, in Suffolk County, the rate is 4.25%. The variation in local tax rates can make a significant difference in the overall amount of taxes you owe.
  • City tax. City taxes are only applicable to those who live or have earned money in New York City. This applies to individuals, trusts, estates, partnerships, S-corporations, and corporations. The city tax rate is 3.078%, 3.762%, 3,819%, and 3.876% depending on the bracket your income qualifies for.
  • Corporate tax. If you are a business owner, you are also required to pay corporate income tax. The tax rate on your corporate income ranges from 6.50% to 7.25%. These taxes generated from businesses is one of the main sources of revenue for the state of New York, and it helps to fund many of the state’s programs and services that benefit its residents.

Navigating The Confusion: Understanding The Statute Of Limitations For IRS Audits

Deciphering the complex rules and procedures of the Internal Revenue Service (IRS) can often feel like navigating a complex maze. One concept that frequently causes ...

Know the Difference Between Tax Fraud & Tax Evasion

Grasping the distinction between tax fraud vs. tax evasion is key, particularly when delving into the labyrinth of tax laws. Both are serious offenses, and ...

How Far Back Can The IRS Audit Your Tax Returns

One common concern that taxpayers have when it comes to tax laws is the question: “how far back can IRS audit” your tax returns? The ...

IRS Notice CP2000 – Understanding What It Is & What You Can Do

An IRS CP2000 is issued when the IRS (Internal Revenue Service) finds a potential discrepancy between their filed tax return and taxpayer information reported to ...

Notice: All information on this website has been prepared for informational purposes only and does not constitute legal advice. -- View full disclaimer here.

Scroll to Top

Notice

Federal IRS Practice.  Attorney advertisement. Prior results do not guarantee similar outcomes. (1) Attorneys of Delia Law P.C. are only licensed in the jurisdictions mentioned in their biographies and not all lawyers mentioned or displayed in Website content may be able to assist clients without adding attorneys admitted in the specific jurisdiction; (2) Delia Law P.C.’s only offices are in Maryland and New York. Mentioned other locations are unstaffed virtual locations, by appointment only, that are not designed to suggest or create a permanent presence; (3) Local counsel are independent and not partners or employees of Delia Law P.C.; (4) All clients of Delia Law P.C. will receive additional, written information (about the lawyer assignment/licensing in the case, our fees etc.) before making a decision to becoming a client. All website Terms and disclaimers apply.

Prior results do not guarantee similar outcomes; attorney advertising. All information on this website has been prepared for informational purposes only and does not constitute legal advice. While this information may constitute attorney advertising in some jurisdictions, merely reading this information does not create an attorney-client relationship. Every case is different, any prior result described or referred to herein cannot guarantee similar outcomes in the future. All visitors to this Website are informed that Delia Law P.C. (“Firm”) works with affiliated lawyers (referred to as “Local Counsel”) in various cities and states across the United States. These Local Counsel may assist the Firm on a case-by-case basis, operate their own respective law firms, are independent of Firm, and are not partners, owners, of counsel, or employees of Firm. Clients and prospective clients should be aware that when referencing to Firm’s experience, this experience may combine the knowledge and experience of both Firm and its frequently used Local Counsel in the aggregate. Specifically, if and when Firm cooperates with Local Counsel, Firm will disclose the details to the client in writing for their approval. Delia Law P.C. is headquartered in New York City. References to a particular city or state in any article or anywhere on this website does NOT mean that Firm maintains an office with staff in that location, and it does NOT mean that Firm has attorneys physically located in that city or state. Firm’s lawyers are only licensed to practice state law in the states mentioned in their respective biographies. With few case-by-case exceptions, Firm’s practice is limited to matters and questions of federal law and federal procedure. Firm’s engagement letter and Firm’s website disclaimers provide additional details.