Receiving a Notice of Wage Levy

As an American citizen, you are afforded a number of liberties and rights that are not offered in many other countries. However, in order to properly maintain the freedoms that we enjoy, each citizen of the country is going to be required to pay taxes. Without taxes, the government and many of the local institutions that we have would cease to function. While paying taxes is part of American life, many people will struggle to keep current with their taxes, and tax debt is an all too common problem. There are a few ways that you can deal with this kind of debt, like comprehending fraud warnings, but if you fail to handle it, you may run into some legal issues.

When people do not pay their tax debt for a certain amount of time, the IRS will often have to take certain steps in order to receive the money that they are owed. To begin this process, the IRS will contact the debtor and will advise them of their debt. During these beginning steps, the taxpayer will have the ability to choose from a number of different repayment plans. It is important that you quickly respond to any notices that you receive from the IRS before they decide to place a levy on your wages.

Wage Levies Explained

A wage levy is a tool that the IRS will use in order to get the money that they are owed. With a wage levy in place, the IRS will be working directly with your employer and they will be taking a percentage of the income that you receive from your employer. This money will be deducted from your paycheck until the tax debt is repaid. If an employer does not comply with the levy, they will be held responsible for the tax debt that is owed. This kind of levy is very commonly used by the IRS, and you will be receiving a notice should you ever face this kind of levy.

Wage Levy Notices

If you receive a notice of wage levy, the notice will essentially be informing you of the intention of the IRS to open a wage levy. The first notice will merely be a warning, and you will still have time to contact the IRS and establish a payment plan that will fit your needs. This preliminary notice is a warning and one that will allow you the ability to avoid the levy being placed on your wages.

The second notice that you will receive on a wage levy is going to be one that actually notifies the taxpayer of the levy being placed on their wages. This kind of action is only going to be taken if the debtor does not respond to earlier notifications from the IRS. At this point, the IRS will open the levy and you will most likely have a certain number of days to appeal the levy. During this period of time, you may also be able to contact the IRS and set up a payment plan, but you should be prepared to pay some fines and fees.

Receiving a Notice of Wage Levy can be a scary and frustrating time for people that are behind on their taxes. Before running into this kind of issue, you will want to speak with the IRS and figure out a way to take care of your debt. If a wage levy is placed on your paycheck, do your best to handle it as quickly as possible and avoid further penalties and problems with the IRS.