By Greenberg law group, p.a.

What is a Wage Levy?

Understanding  Wage Levies

Keep swiping to learn the process of a wage levy!

A wage levy is a legal action the IRS takes to address unpaid taxes directly from an individual’s wages. 

The process involves the IRS issuing a wage levy to the taxpayer’s employer, instructing them to withhold a portion of the taxpayer’s wages or salary and remit it to the IRS to settle the outstanding tax debt.

1. IRS Notification Process

Before resorting to levies, the IRS follows a series of steps to notify taxpayers and offer opportunities to resolve their overdue taxes.

If the taxpayer takes no action, the IRS issues a Final Notice of Intent to Levy, serving as a final warning to the taxpayer if action is not taken.

2. Employer’s Role in a Wage Levy

When the IRS issues a wage levy to an individual’s employer, the employer is legally required to comply with the instructions outlined in the levy notice. This involves informing employees about the levy and the amount withheld from their wages.

Additionally, the employer must remit the withheld funds to the IRS.

3. Calculation and Amount

When the IRS initiates a wage levy, it considers multiple factors such as the taxpayer’s income, filing status, dependents, and standard deduction. Additionally, there are limits on the amount the IRS can levy, typically to ensure that the taxpayer retains enough income for essential living expenses. 

4. Responding to a Wage Levy

When faced with a wage levy, seeking professional help is crucial. With the assistance of experts, you can ensure you respond appropriately to the situation, maximizing your chances of achieving the best possible outcome.

Need Help Navigating  Wage Levies?

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