Today TaxMama® hears from Vivian in the TaxQuips Forum, with a big problem. “I just received notice today of my wages being garnished. I will be left with only $750 per month to pay all my expenses (which total approximately $1,500 at minimum per month). What can I do to negotiate that amount due to IRS down, so that I am able to pay my mortgage, electric bill, and be able keep enough money to live on?”
Hi Vivian,
If your wages are being garnished, it’s because you’ve ignored IRS’s letters until now. [TaxMama note: Before IRS ever issues property levies or wage attachments, they send out a whole series of letters. If you contact IRS, or hire someone else to do it for you – things can generally be resolved without a lot of fuss.]
The first thing to do is CALL THE IRS! This is meant to be a wake-up call. They are trying to get your attention.
Arrange an installment plan with the IRS, based on what you can afford, and they will stop garnishing your wages, immediately! They’ll let you pay voluntarily. The new IRS Fresh Start Initiative rules apply to balances due under $50,000. As long as the monthly payment you offer will pay off the balance due within 5 years, IRS will automatically accept your payment offer.
But, if you miss a payment – call them immediately. They will work with you – if you call them.
As to reducing your balance owed – that’s a whole other ballgame!
And remember, you can find answers to all kinds of questions about garnishments and other tax issues, free. Where? Where else? At www.TaxMama.com.
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