Wage Garnishment FAQs
A wage levy, or garnishment of wages, may be stopped if other arrangements are made to pay the overdue taxes, the amount of overdue taxes is paid, or the levy is released.
The IRS may release a levy when:
• the amount owed is paid
• the period for collection has ended
• you enter into an installment agreement with terms to release the levy
•the levy creates economic hardship, or the value of the property is more than the amount owed and releasing the levy won’t prevent the IRS from collecting the overdue taxes.
The IRS will contact your current employer with the levy information. Your employer will determine the amount of wages exempt from the levy. Your employer will provide you with a Statement of Dependents and Filing Status to complete. After completion, your employer will withhold a certain amount of wages to satisfy the levy.
Yes. It is possible to set up a payment plan, settle your tax debt, or make other payment arrangements with the IRS.
The amount of wages exempt from garnishment depends on a number of factors including your filing status, number of dependents, and other factors.
There may be significant penalties for employers who ignore garnishment orders.
No. Generally an IRS levy is not public record and is not reported to the credit bureaus.
Likely no. An IRS levy is not public record and is not reported to the credit bureaus.
Garnishments may be looked up through a search of court records and/or found through credit reports.
Likely, yes. Changing employers is not an option to avoid garnishment.