What Is Wage Garnishment?
The IRS has the right to issue a wage garnishment, a levy attached to a taxpayer’s wages who owes the IRS a tax debt. Proper notice must be given by the IRS to the taxpayer before it can actually issue the levy. The IRS informs the taxpayer’s employer of the wage garnishments and the employer is legally obligated to comply with the terms of the wage garnishment. However, the IRS is not allowed to take all of a taxpayer’s wages, only up to 80 percent of the wages. The IRS will release the wage garnishment in full if the taxpayer agrees to pay the liability in full, or can prove that the garnishment is causing financial hardship.
