When the IRS garnishes your wages, they instruct your employer to withhold a portion of your paycheck to satisfy your tax debt. It's one of the most stressful collection actions—but you're not without options.
Why Garnishment Happens
Wage garnishment typically occurs after the IRS has sent multiple notices and you haven't set up a payment plan or otherwise addressed the debt. The IRS can garnish without a court order, unlike many other creditors.
How Much Can They Take?
The IRS uses formulas based on your filing status and number of dependents. They leave a minimum amount for basic living expenses, but the withheld amount can still be significant and create real hardship.
Options to Stop or Reduce Garnishment
- Payment plan: Setting up an installment agreement may lead the IRS to release the garnishment.
- Offer in Compromise: If you qualify, settling for less could resolve the debt and stop garnishment.
- Currently Not Collectible (CNC): If you can't afford to pay, the IRS may temporarily pause collection.
- Hardship: Demonstrating financial hardship can sometimes result in a release or reduction.
Act Quickly
The sooner you address the situation, the better. A licensed tax professional can help you understand your options and communicate with the IRS on your behalf.