Wage garnishment is a type of collection method used by the Internal Revenue Service where a portion of your wages or salary are deducted from each paycheck and applied towards paying off your tax debt. The garnishment ends when the taxes are paid in full or another payment method such as an installment agreement is arranged. The IRS may garnish a maximum of 25 percent of a taxpayer’s earnings for each pay period.
Many people find that they cannot live on the amount remaining after the garnishment is taken out, so they seek a modification. Wage Garnishment modifications can help protect income and maintain a level that makes it possible to live.
Koontz & Parkin, CPAs will assist you in dealing with the IRS and your specific wage garnishment situation. In addition to being a CPA, Jo Ann Koontz is a tax attorney with many years of experience representing clients before the Internal Revenue Service.
The IRS has a broad ability to levy. Tax levies fall into 2 categories. The first are levies directed to the taxpayer and cover the property owned by the taxpayer, this is sometimes called a seizure. The second category is a levy served on third parties who hold intangible property belonging to the taxpayer, such as banks and employers.
In some cases, the IRS can seize your property. Generally in Florida, homestead laws protect your primary residence. However, it is critical that you find out your rights by speaking with a qualified tax attorney.
The IRS can serve a levy to your banks, your retirement plan holder, and to your life insurance company if your life insurance policy has a cash surrender value. Bank levies can also be used to remove cash from a bank account. Once the IRS places a levy order, your financial institution will be required to remove all funds available in your accounts up to the amount you owe, hold it in a separate account for 21 days and then send it to the IRS. It may be possible to obtain a release of a levy to help save you from losing your entire savings, so it is important that you seek immediate counsel from a tax professional.
Jo Ann M. Koontz and Marina Parkin offer a powerful combination of in-depth knowledge of tax regulations, a firm grasp of the business world, and years of experience representing clients. To schedule a consultation, call the Sarasota office of Koontz & Parkin, CPAs at 941.328.3993.