Contact the IRS right away to resolve your tax liability and request a tax exemption. The IRS can also release a tax if it determines that the tax is causing immediate economic hardship. If the IRS rejects your request for tax release, you can appeal this decision. Contact the IRS immediately at the telephone number listed in the garnishment or in the correspondence and explain your financial situation.
If the tax on your salary is creating an immediate economic difficulty, the tax must be released. If the tax on your bank account or other account is creating an immediate economic situation, the fee may be released. You can avoid a garnishment by filing returns on time and paying your taxes in due time. If you need more time to apply, you can request an extension.
If you can't pay what you owe, you should pay as much as you can and work with the IRS to resolve the remaining balance. The key is to be proactive, so don't ignore IRS billing notices. The most effective way to get a tax release is to pay what you owe the IRS in full. If you have the financial means, you must pay the obligation in full and ensure that your account with the IRS has a zero balance.
A tax exemption is when the IRS withdraws a tax that has been imposed on you. For example, if you convince the IRS to withdraw the tax levy, the agency could suspend taxes, such as garnishing your salary or garnishing your bank account. There are some situations where the IRS will consider your circumstances when determining whether to maintain or release a wage garnishment while the offer is pending. The IRS may require your employer to withhold part of your salary from your paycheck and sent directly to the IRS.
If you receive a final notice of intent to tax from the IRS, the agency can begin to seize your assets within 30 days, unless you take action. If the tax is already in effect, the IRS can withdraw it if it accepts your proposed payment plan. But be prepared for the tax to remain in effect while the IRS processes your documentation for the settlement. When an IRS tax could create severe monetary hardship for you and your family, you can file a case of financial hardship with the IRS.
The IRS has a lot of power to collect a wide variety of assets, but it doesn't have the right to keep everything. To file this case, you may need to provide bank statements showing checking, savings, or retirement account balances. Once the IRS isn't willing to wait any longer to collect the taxes you owe, it can collect your salary through a wage garnishment. If the IRS collects your state tax refund, you can receive a garnishment notice on a state tax refund after the IRS has accepted your refund to pay your back taxes.
Under any circumstances, when the IRS threatens a garnishment, you must ensure that you have adequate representation. If any of these options seem too complicated to execute, or if the idea of dealing with the IRS and outstanding debt isn't your thing, Jackson Hewitt Tax Resolution Services offers a full set of options for effectively managing IRS problems. Jo Willetts, director of tax resources at Jackson Hewitt, has more than 25 years of experience in the tax industry. The IRS must notify the taxpayer, at least 30 days in advance, of their intention to tax wages, salaries and other assets.
Asking questions about liability can be complicated, and in most cases, you should first apply for another type of tax resolution program.