Legal Question in Tax Law in California
Federal tax levy on wages
Is it legal for the IRS to put a levy on my regular wages, taking 75% of my pay in addition to the current taxes for that pay period? After the first garnishment of $865, I was left with less than $200 for 2 weeks. I immediately called the IRS and set up a payment schedule. At the same time I was told that there was a they would release the levy and that only the additional $100 per check would be witheld as per my phone conversation with the IRS. Since that conversation there was another $900 witheld from my pay and I have not been able to pay my rent or my car payment for last month. There must be something wrong with this. please help
2 Answers from Attorneys
Re: Federal tax levy on wages
i advise against any direct contact with the irs once collection is in process. you should be represented by an attorney, cpa or enrolled agent who is experienced with government collection procedures. be wary of any companies that claim to be able to solve your collection problems and which require a large initial payment. many are owned and managed by non-professionals who do little if anything for the taxpayer.
as a last resort, you can contact the taxpayer advocate service with the irs. see http://www.irs.gov/advocate/article/0,,id=97402,00.html
there are specific amounts which are exempt from levy. see http://www.irs.gov/pub/irs-pdf/p1494.pdf
there are formal appeal procedures available. see http://www.irs.gov/pub/irs-pdf/p1660.pdf
there are procedures for releasing a levy. see http://www.irs.gov/pub/irs-pdf/p594.pdf
Re: Federal tax levy on wages
The IRS usually mails the release of levy, unless you request that they fax the release to the employer. If they mail it, it could take up to 10 days fro the employer to receive it. I agree with Mr. Field regarding contacting IRS by yourself, but it may not be too late to get the last levy released back to you.
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