Accounting & Tax Solutions | Ruben D. Rosas, Inc
426 S. Citrus Ave. Covina, CA 91723
PH: (626) 858-6950 | FAX: (626) 858-6960
EMAIL: info@rrtaxes.com

Call us: (626) 858-6950

Over 30 Years of Accounting & Tax Knowledge

IRS WAGE LEVY (GARNISHMENTS)

What happens if you do not pay your taxes? Or make arrangements to settle your debt?

  • The IRS may seize and sell any type of real or personal property that you own or have an interest in. For instance,​
  • The IRS can seize and sell property that you hold (such as your car, boat, or house), or
  • Levy property that is yours but is held by someone else (such as your wages, retirement accounts, dividends, bank accounts, licenses, rental income, accounts receivables, the cash loan value of your life insurance, or commissions).


When will the IRS usually levy? Only after these three requirements are met:

  • The tax has been assessed and the taxpayer has been sent a Notice and Demand for Payment;
  • You neglected or refused to pay the tax; and
  • The IRS has sent you a Final Notice of Intent to Levy and Notice of Your Right to a Hearing (levy notice) at least 30 days before the levy. The IRS may give you this notice in person, leave it at your home or your usual place of business, or send it to your last known address by certified or registered mail, return receipt requested.​
  • What is the typical amount levied/garnished from a taxpayer’s paycheck? This is a formula driven process, however, the amount is typically 30-70% of the gross paycheck.


Can a Levy be appealed?

Yes. In most cases, our clients retain us to request a Collection Due Process hearing with the Office of Appeals. While you can negotiate with the IRS on your own, it isn’t recommended. Everything you say can be used against you and the IRS agents are very good at interrogating taxpayers. A much better way to go is to hire a tax professional to handle the matter for you. A good tax professional should be able to get the IRS to significantly lower or completely terminate the wage garnishment in exchange for a payment plan. In certain situations, the tax professional may recommend pursuing an offer in compromise wherein the IRS will agree to eliminate or dramatically lower your tax debt. Obviously, any of these situations represents a major improvement over having your wages garnished.

We at Accounting & Tax Solutions specialize in getting rid of IRS wage garnishments, in some cases as little as 48 hours.  Contact Us today at (626) 858-6950.