Enforcing a tax lien or wage garnishment?
Saturday, December 18th, 2010 at 7:56 pm
If the IRS for Federal Taxes or the State for state taxes intend to garnish wages or place a bank levy or tax lien… Do they have to notify you in writing before they do so??
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Tagged with: federal tax liens • irs • levy • state taxes • tax liens • wages
Filed under: IRS
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You’ll receive several increasingly threatening letters demanding payment or that you set up a payment plan. If the debt is more than pocket change, a lien is pretty much automatic. If you continue to ignore them you’ll receive a final notice of seizure and intent to levy. If you don’t pay or make arrangements by the deadline in that notice, the actual notice of the levy action will come from your bank or employer AFTER they have complied with the IRS or State levy order.
BTW, the IRS does not "garnish" wages. They levy them. There’s a critical difference. Garnishment requires a court judgment against you while levy action does not.
If you are receiving dunning letters from the IRS or State tax authorities, contact them NOW to make payment arrangements and stick to the payment plan!
Obviously you will be informed of any garnishment or levy prior to it being enforced. Anyone in this situation needs to get it dealt with. Your best bet would be to seek professional help.
if you wind up with an IRS levy, tehy will send a notice to your employer, who then has to forward it to you and you have to reply within 3 days or teh employer has to start the levy on your wages – I have seen several come thru my company in the last year and almost all the taxpayer somehow got the levy stopped – not sure if they actually paid the money or set up a payment plan with the IRS. they were all for several $1000 each, so they would have had that money deducted from their paychecks for a long time
IRS will have sent you at least five written demands, two of them by certified mail, before issuing a bank or wage levy.