When you owe the IRS a lot, they have no problem assigning their most skilled agents to your case. In this particular instance a taxpayer came to our firm owing almost $2 million. The IRS had become aggressive in their collection actions and instituted a wage garnishment against the taxpayer by sending their employer an IRS Form 668-W.
What is a Wage Garnishment?
A wage garnishment is the IRS attempt to collect on the outstanding tax debts. If, or more likely when, the IRS decides to pursue collection against a taxpayer, they typically go after the low hanging fruit first. Normally the IRS will either institute a wage garnishment or a bank levy. If you are a W2 employee, a wage garnishment seems to be their preferred method of collections. If you haven’t voluntarily disclosed to the IRS where you work, they can normally find out themselves, either through a review of the Wage and Income transcripts which contain copies of your prior Form W-2’s filed with the IRS, or through other online research (LinkedIn, Facebook, etc.). The IRS simply needs mail your employer an IRS Form 668-W to institute this action. Upon receipt of the wage garnishment, your employer will begin forwarding your hard earned compensation to the IRS.
How to Release a Wage Garnishment?
Once the IRS begins collection against you through a wage garnishment it can be very difficult to release. The IRS now has the high ground and leverage against you. Our firm has encountered numerous instances where the IRS has then forced the taxpayer into a “bad deal” or one that they could not afford. If you owe the IRS back tax debts and are being subjected to a wage garnishment its important to seek help and counsel from a qualified professional as quickly as possible; our firm can help you just like the above taxpayer who owes the IRS almost $2,000,000.