If the IRS is taking money from your paycheck, you may still be able to stop an IRS wage garnishment. Depending on your circumstances, possible solutions include arranging payment, proving financial hardship, correcting an IRS error, or requesting an appeal.
An IRS wage levy can continue with every paycheck until the tax debt is paid, the IRS agrees to another arrangement, or the levy is formally released. Acting quickly can help protect your income and prevent the problem from becoming more difficult to resolve.
What Is an IRS Wage Garnishment?
An IRS wage garnishment, technically called a wage levy, is a collection action that requires your employer to send part of your pay directly to the IRS.
Unlike a bank levy, which generally attaches to money available in an account at a particular time, a wage levy is continuous. It can affect each paycheck until the IRS issues a release or the tax debt is otherwise resolved.
Before issuing a levy, the IRS generally assesses the tax, sends notices requesting payment, and provides a final notice explaining your right to a hearing. However, once the wage levy reaches your employer, immediate action may be necessary.
For a broader explanation of the collection process and available relief, read our complete guide to stopping an IRS levy or wage garnishment.
How Much Can the IRS Garnish From Your Wages?
The IRS does not use one fixed garnishment percentage for every taxpayer. Instead, part of your pay is exempt based on factors such as:
- Your filing status
- The number of dependents you claim
- How often you are paid
- The exemption amounts listed in IRS Publication 1494
Your employer should provide a Statement of Dependents and Filing Status after receiving the levy. Complete and return it promptly. If you do not return the statement, your employer may calculate the exempt amount using less favorable default information.
The amount left for living expenses may be much lower than expected. Our guide to how much the IRS can garnish from your paycheck explains how the exempt amount is determined.
How to Stop an IRS Wage Garnishment
The best way to stop an IRS wage garnishment depends on the tax debt, your finances, and whether the IRS followed the required collection procedures. Start with the following steps.
1. Review the Wage Levy Documents
Read the levy notice carefully and confirm:
- Which tax years are included
- How much the IRS says you owe
- Whether the debt belongs to you
- Which IRS office or revenue officer is handling the case
- Whether any response or appeal deadline remains available
The notice sent to your employer may be identified as Form 668-W. Keep copies of the notice, recent IRS letters, tax returns, pay stubs, bank statements, and household expense records.
2. Contact the IRS Immediately
Call the telephone number printed on the levy or collection notice. Be prepared to verify your identity and explain why you are requesting a release.
Before calling, gather accurate information about your income, necessary living expenses, assets, and ability to pay. The IRS may request financial forms and supporting documents before deciding whether to release the levy.
For help preparing for the conversation, see our guide to the IRS wage garnishment phone number and what to say.
3. Request the Appropriate Resolution
Several options may stop the garnishment or address the debt behind it.
Pay the Balance or Correct an Error
If the debt has already been paid, belongs to someone else, or contains an error, provide the IRS with supporting documentation. Paying the balance in full can also end the levy, although you should confirm that the IRS has issued the release to your employer.
Establish an Installment Agreement
An installment agreement allows eligible taxpayers to pay their tax debt over time. In some cases, the IRS may agree to release a wage levy after acceptable payment terms have been established.
An existing wage levy is not always released automatically simply because an installment agreement is requested. The release should be discussed directly with the IRS as part of the proposed arrangement.
Apply for an Offer in Compromise
An offer in compromise may allow a qualifying taxpayer to resolve tax debt for less than the full amount owed. Eligibility depends on the taxpayer’s income, expenses, assets, and ability to pay.
Submitting an offer does not necessarily release an existing wage levy. A separate levy-release request may still be required while the offer is being evaluated.
Request Currently Not Collectible Status
If paying the IRS would prevent you from covering basic and reasonable living expenses, you may qualify for currently not collectible status. The IRS will usually request detailed financial information before making this determination.
Currently not collectible status temporarily pauses active collection, but it does not eliminate the tax debt. Interest and penalties may continue to accrue, and the IRS may review your financial condition later.
Appeal the Collection Action
You may have appeal rights if the IRS failed to follow proper procedures, rejected a proposed collection alternative, or levied property that should be exempt.
A Collection Due Process hearing normally has a strict deadline following the final notice of intent to levy. Other appeal procedures may be available in certain circumstances, so review every notice promptly.
Can You Stop IRS Wage Garnishment for Financial Hardship?
You may be able to stop tax garnishment if the levy prevents you from paying necessary living expenses.
The IRS states that it must release a levy when it determines that the collection action is creating immediate economic hardship. This does not mean that every financial difficulty will qualify. The IRS may examine expenses for housing, food, transportation, healthcare, and other necessities before reaching a decision.
You may be asked to provide:
- Recent pay stubs
- Bank statements
- Rent or mortgage records
- Utility bills
- Medical expenses
- Transportation costs
- Information about assets and other income
A hardship release does not erase the tax balance. You will still need a longer-term plan for resolving the debt.
What Happens After the IRS Releases the Garnishment?
Your employer must receive an official levy release before stopping deductions from your paycheck. A verbal statement from the taxpayer is not enough.
After the IRS approves the release, confirm that the release was sent to your employer and ask payroll when the deductions will stop. Processing times can vary depending on when the release is received during the payroll cycle.
You should also address the underlying tax debt. Otherwise, the IRS may resume collection later if you do not maintain the agreed resolution.
How a Tax Professional Can Help
Stopping a wage levy often requires more than a single phone call. A tax attorney or other authorized tax professional may help by:
- Reviewing the levy and previous IRS notices
- Confirming the amount and tax periods involved
- Communicating with the IRS
- Preparing financial disclosures
- Requesting a hardship release
- Negotiating an installment agreement
- Evaluating an offer in compromise
- Protecting available appeal rights
- Developing a longer-term tax-debt strategy
Tax Attorneys of America helps individuals and businesses evaluate collection problems and pursue appropriate resolution options. Learn more about available IRS levy-resolution assistance.
Frequently Asked Questions
Can you stop an IRS wage garnishment after it starts?
Yes. Depending on the circumstances, an active wage levy may be released after the balance is paid, a payment arrangement is approved, financial hardship is established, an error is corrected, or a successful appeal is completed.
How long does an IRS wage garnishment last?
An IRS wage levy is generally continuous. It can remain in effect for each pay period until the IRS releases it, the debt is paid, or another resolution is accepted.
Can the IRS take my entire paycheck?
The IRS generally leaves an exempt amount based on your filing status, dependents, and pay frequency. However, the protected amount may be less than your normal living expenses, which is why responding quickly is important.
Does applying for a payment plan automatically stop wage garnishment?
Not necessarily. Requesting a payment plan does not always release an existing wage levy. Ask the IRS specifically whether the levy will be released as part of the agreement.
Who should I call about an IRS wage garnishment?
Start with the telephone number printed on the levy or collection notice. If a revenue officer is assigned to your case, contact that person directly. Have your notices and financial documents available before calling.
Take the First Step Toward Tax Resolution
Tax problems can become more difficult when left unresolved, but you do not have to navigate the IRS alone. Tax Attorneys of America helps individuals and businesses understand collection notices, evaluate potential relief options, and pursue an appropriate path toward resolving tax debt. Contact Tax Attorneys of America today to request a free, confidential case evaluation and learn which options may apply to your situation.
This article provides general information and does not constitute legal or tax advice. Every situation is different. Speak with a qualified professional about your specific circumstances.
This article is general information, not legal or tax advice. Every situation is different — talk to a licensed professional about your specific circumstances.