The IRS uses Form 668-W(c) to notify your employer and you of a levy against your wages. This can be a very difficult situation. If you have unfiled returns, the IRS will not release the levy.
Your employer is required to turn over non-exempt wages and you should inform them of any dependents you have.
However, the wage levy is often greater than 90% of your wage and it is continuous until released by the IRS.
In some low-dollar cases they may be able to set up a payment agreement & release the levy. But, usually they require: 1) full tax compliance & 2) financial disclosure.
These twin duties can be burdensome. The IRS will require a lot of information from you justifying your financial resources & ability to pay.
Usually, you must complete a Form 433-A or Form 433F to disclose your income & assets to the IRS (not both). This will be difficult & time-consuming. And, you need tax Attorney guidance. But, only you can prepare the form because only you have access to all the information. Our TaxHelp Webinars show you the tricks & traps of completing these forms while the TaxHelpLaw attorney advocates for you!
Stop an IRS Wage Levy
One way to stop an IRS wage levy immediately is to file bankruptcy. That stops all collection action but it may not be an advisable path because the taxes may not be dischargeable. So, after the bankruptcy is completed the IRS will renew enforced collection & you'll be in the same position as before the bankruptcy. Use this Evaluator to see if you qualify!
Absent filing bankruptcy, your goal is to secure a release of the wage levy, hopefully before the next paycheck. But, the IRS will not release a levy if you haven't filed all your returns. If some returns have not been filed you should follow the Unfiled Returns & the Collections Prep Steps.
Contact the IRS for a Release
The IRS will only communicate by telephone, regular mail or fax. So, if you want the levy quickly released you'll have to use a fax machine while calling them on the phone. Get the fax number for your employer's payroll department so the IRS can fax the release directly to your payroll. After any necessary returns are prepared & signed & you've fully completed the Form 433F or Form 433A (with all supporting documentation), call the IRS telephone number on the Wage Levy. Tell them you want a release & fax them the signed returns. Then, give them all your Form 433F information & the fax number for your payroll. If you are fully prepared you should be able to obtain an installment agreement & secure a levy release, too.
But, that's NOT the end of the case. We must review all the facts & create an Action Plan for you to diminish or dissolve this debt. For more detailed information please follow the Collection Prep Steps & contact Mr. Hopkins!