Avoiding The IRS Garnishing Your Wages
As they say, there are only two things certain in life, death and taxes.
Unfortunately, the saying is true.
Even if you have unfiled tax returns, the IRS is going to want their money one way or the other.
If you are one of the many people who have not filed their taxes as they are worried about wage garnishment, you will be relieved to know that there are other methods of paying the IRS beyond them taking your wages.
The first step of setting up a payment plan with the IRS is to make sure that you have filed all your returns.
Whether you have one year or taxes to file or ten, you will need to get these completed and sent in.
Keep in mind you are going to end up with penalties and interest on these.
If you happen to be in a refund in any of those years, don't expect the IRS to pay you interest, that will ultimately be applied to any funds owing.
Depending on how many years you are filing, it may take a bit longer than normal for them to do their usual audit in order to setup a payment plan for you.
Meanwhile, if you are able to make some payments towards your potential debt, it may be a good idea as it will allow you to come to a tax resolution a little bit easier.
By showing that you are willing to work towards a resolution, the IRS will hopefully be more willing to work with you.
Even paying a hundred dollars a month can go a long way towards showing that you plan to be cooperative and it will show you are making an effort.
In order to be eligible for a payment plan, the debt for an individual must be less than $50,000 total between taxes owed, and all penalties and interest that have accumulated as a result.
If it is a business, the business must owe less than $25,000 in payroll taxes and have all their returns current.
With that said, you can apply for a payment plan but you may be declined.
If that is the case, you can still make installment payments to the IRS.
By doing this, you should be able to avoid any type of tax lien against you.
In the meantime, as long as there is still a balance for you to pay off, you will continue to accrue interest and penalties.
The sooner you can pay off your income tax, the sooner you will have tax relief and you will hopefully avoid getting in this situation again.
If you take the effort to work with the IRS to satisfy your tax debt, you will be able to avoid any type of tax levy or tax garnishment against you.
Overall, this will benefit you as it will not affect your other financial obligations and you will still have your full wages or own your assets once the debt has been fully satisfied.