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Get Help To Avoid A Wage Garnishment
Tax debt can be a very unpleasant situation for an individual to face. Tax debt is often the result of inadvertent errors on tax returns or unforeseen taxes as the result of various financial transactions. As a result, taxpayers with outstanding tax debt often find themselves unable to repay this type of debt to the satisfaction of the federal government. This website is designed to be a resource that provides legal information to those individuals that have outstanding tax liabilities. If the information contained herein fails to sufficiently address an individual’s tax questions, they may contact the attorneys at the tax law center for additional information. Both are excellent sources of legal advice and guidance for those individuals with back taxes that must be settled.
Benefits Of Voluntary Compliance
When the Internal Revenue Service (IRS) has concluded that an individual has an unpaid tax debt, the agency will often take action to collect this debt. Some of the measures the IRS employs are passive and are intended to encourage voluntary compliance. Examples of passive measures include things such as penalties and interest. These charges will be assessed against the total of the unpaid balance. Because penalties and interest increase the total tax liability owed to the IRS, the agency hopes that the threat of these measures will motivate the taxpayer to discharge their debt. In order to avoid the additional costs of penalties and interest, tax payers need to voluntarily comply with requests from the IRS regarding payment of their tax liability. If taxpayers fail or refuse to pay their tax debt, the IRS may employ various enforced compliance measures.
Wage Garnishment: An Enforced Compliance Measure
There are times when the IRS chooses to pursue a more aggressive course of action in the collection of outstanding tax debt. One methods that the IRS may utilize is wage garnishment. IRS garnishing occurs when the IRS directs the tax payer’s employer to withhold funds from the employee’s paycheck. The funds that are withheld are sent directly to the IRS as payment towards the individual’s overdue taxes. Because wage garnishment can cause significant financial hardship, the taxpayer will want to avoid wage garnishment. The wage garnishment lawyers at a tax law center could be of significant help to those individuals that finds themselves in this precarious situation.
How To Avoid Wage Garnishment
The best way to avoid wage garnishment is by arranging a debt settlement plan with the IRS. While paying the debt outright would be the most efficient, many individuals do not have the financial resources available to pay the debt in one lump sum. Therefore, a debt settlement plan may be established with the IRS. Individuals will need to determine the type of settlement plan that will be most suitable for them based on their financial circumstances. An attorney at the tax law center can help individuals ensure that the debt settlement plan they submit to the IRS will not cause them further financial harm.
Types Of Debt Settlement Plans
In some situations, the IRS may agree to accept a lesser amount than the total owed in order to settle the debt and stop IRS garnishing. The following are debt settlements plans offered by the IRS:
* Payment Plans – Establishing a structured payment plan with the IRS is a great way of stopping garnishments. By doing so, an individual agrees to voluntarily comply with the IRS collections process. When this occurs, the agency no longer needs to enforce compliance through wage garnishments.
* Offer in Compromise – If an individual can provide sufficient evidence to support a request to settle the debt for a lesser amount of money than is owed, the IRS may accept an offer in compromise. If the IRS agrees to this method of stopping IRS garnishment, the funds may paid as a: lump sum, short term periodic payment, or deferred periodic payment.
For those individuals interested in stopping garnishments, a tax professional can of invaluable assistance. An attorney can help individuals determine which type of debt settlement plan will be right for them. A lawyer can also evaluate an individual’s financial information and determine their eligibility for non collectible status.
Need Assistance? Contact The Tax Law Center
To stop wage garnishments, an individual must begin voluntary compliance with the IRS collection process. If non-collectible status is not an option, the tax payer must begin paying their debt. Negotiating a payment plan can be a complex and involved process. Wage garnishment lawyers at the tax law center can help individuals work with the IRS and determine the best method of compliance. It can be frustrating and overwhelming to deal with IRS practices such as wage garnishment. Having the help of an experienced and qualified tax attorney can make all the difference.