What’s the difference between wage garnishments and wage levies? A wage garnishment is a wage levy; they’re essentially different terms for the same subject. A levy is a legal seizure of your property to satisfy a tax debt. Levies are different from liens. Liens are legal claims that are recorded or noticed against your property to secure payment of a tax debt. The levy is the actual act of taking the payment or property in order to satisfy the debt.
If you have a tax levy against your wages, you have either ignored the many notifications from the IRS or have not responded to them in the proper manner. Because they want their money and you have not responded accordingly, they will take that money directly out of your wages.
If you fall into this pattern, the IRS will first send you a Notice and Demand for payment, better known as a tax bill. If you refuse to pay this bill, you’ll be sent a Final Notice of Intent to Levy and a Notice of Your Right to a Hearing. You will receive these items approximately 30 days before the levy.
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You have many options to resolve a levy.
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If you do not act and settle the debt, the IRS will levy your bank accounts, your personal property, your home, and anything else of value that you own. It’s easiest for them to levy your bank accounts and your wages.
However, when you get a levy, how can you get it removed?
- You can pay the amount that you owe.
- The time period for collection expires before the levy is issued.
- You can enter into an Installment Agreement or an Offer in Compromise to negotiate the release of a levy.
- If the levy creates an economic hardship for you, you can have it removed.
- The value of the property is more than the amount owed and the levy will not hurt the IRS’s ability to collect the amount owed.
If you’re having trouble with this issue, please don’t hesitate to contact me. I would be happy to provide you with assistance!
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