Wage Garnishment
The IRS is threatening to take your money... now what?
When you owe back taxes and haven’t set up an agreement with the IRS for the debt (using an extension to pay (ETP), payment plan, currently not collectible status, or an offer in compromise—all depending on your situation), the IRS can levy your income and assets.

What is a Wage Garnishment?
When you owe the IRS money and fail to pay it, they will initiate collection actions against you. IRS wage garnishment, also known as a wage levy, is one method they employ to satisfy your tax debt. Wage garnishment allows the IRS will seize part of your wages each pay period until your tax debt is paid in full. Unlike other creditors, however, the IRS does not need a court order to garnish your wages.
How does an IRS wage levy work?
- Employer contact: The IRS will contact your employer and require that your payroll department withhold a percentage of your pay. Your employer must remit that withheld portion to the IRS. Employers invariably comply because they can be held liable for the amount not deducted.
- Continuous Garnishment: Unlike a bank levy, the levy of wages is continuous. It can remain in place—unless stopped—until the wages collected cover the back taxes, plus interest and penalties.
How we can stop an IRS wage levy
At TaxSolve, we specialize in solving urgent IRS tax problems like tax levy on paycheck. Often, we can stop a wage levy in just 24-hours.
Stopping the wage levy wins us time to either negotiate payments or challenge the claims of the IRS.
To release a wage levy, we can:
- Negotiate an Offer in Compromise (OIC);
- Arrange for a Streamlined Installment Agreement;
- Claim economic hardship to reduce payments;
- Have your debt classified as Currently-Not-Collectible;
- Prove that the statute of limitations on collecting the back taxes has expired;
- Challenge the IRS on their adherence to proper procedures.