How to Stop IRS Wage Garnishment and Bank Levies
Facing an IRS Wage Levy or Bank Levy?
Is the IRS threatening to garnish your wages or levy your bank account? You may have options to stop collection action and protect your income.
An IRS wage garnishment or bank levy can create a serious financial hardship, making it difficult to pay your mortgage, rent, utilities, and other essential expenses.
At Foxworth Tax Defense, we help taxpayers understand their rights, communicate with the IRS, and pursue available solutions to resolve their tax debt.
We Help Taxpayers Facing IRS Collection Enforcement
Foxworth Tax Defense provides professional IRS representation to help taxpayers facing wage garnishments, bank levies, and other collection actions. We begin by reviewing your IRS account and financial circumstances to identify available resolution options, including:
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The amount and tax periods involved
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IRS collection notices
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Collection deadlines
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Your filing compliance
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Your financial condition
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Available appeal rights
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Potential collection alternatives
Depending on the circumstances, we may pursue a collection hold, levy release, installment agreement, hardship status, Offer in Compromise, Collection Due Process hearing, or another appropriate resolution.
Don't Wait Until Your Next Paycheck Is Affected
The best time to address a levy is often before collection occurs, but options may still be available after enforcement begins.
Received an IRS levy or garnishment notice? Contact Foxworth Tax Defense as soon as possible for a confidential case review.
FAQs
Can the IRS garnish my wages for unpaid taxes?
Yes. The IRS can garnish your wages through a wage levy when you owe unpaid federal taxes and applicable collection procedures have been followed. Unlike many other garnishments, an IRS wage levy generally continues with each paycheck until the levy is released or the tax debt is resolved.
However, taxpayers may qualify for relief through an installment agreement, financial hardship determination, or other IRS collection alternatives.
Can an IRS wage levy be stopped?
Yes. An IRS wage levy may be stopped or released depending on your financial circumstances and collection status. Possible options include establishing an IRS installment agreement, demonstrating financial hardship, or requesting a levy release through an appropriate IRS collection procedure.
If the levy is preventing you from paying necessary living expenses, you may qualify for a hardship release. The IRS may require financial documentation to evaluate your request.
Acting quickly is important because a wage levy generally continues to affect future paychecks until it is released.
What should I do if I receive a Final Notice of Intent to Levy?
If you receive an IRS Final Notice of Intent to Levy, do not ignore it. This notice generally means the IRS is preparing to take collection action against your wages, bank accounts, or other assets.
Review the notice immediately to identify the tax periods involved, the amount owed, and your response deadline. You may have the right to request a Collection Due Process (CDP) hearing, generally within 30 days of the notice date, depending on the type of notice and your circumstances.
Taking timely action may help you preserve appeal rights and explore collection alternatives before a levy occurs.
Foxworth Tax Defense can review your notice, explain your options, and represent you before the IRS.
What happens if the IRS levies my bank account?
When the IRS issues a bank levy, your financial institution generally freezes the funds available in your account at the time the levy is received, up to the amount owed.
The bank generally must hold those funds for 21 days before sending them to the IRS. During this period, you may be able to request a levy release if the levy was issued in error, creates qualifying financial hardship, or meets another basis for release.
A bank levy generally affects funds in the account when the levy is received, rather than automatically taking future deposits.
If your bank account has been levied, contact the IRS promptly. Foxworth Tax Defense can help evaluate your situation and available options for requesting relief.
Can financial hardship help get an IRS levy released?
Yes. The IRS may release a wage or bank levy if it determines that the levy is creating an economic hardship by preventing you from meeting necessary living expenses.
To evaluate your request, the IRS may review your income, household expenses, assets, and financial obligations. Supporting documents such as pay stubs, bank statements, and monthly expense records may be required.
If you qualify, the IRS may release the levy and consider placing your account in Currently Not Collectible (CNC) status. However, the underlying tax debt generally remains owed, and interest and penalties may continue to accrue.
Foxworth Tax Defense can help evaluate your financial circumstances, prepare supporting documentation, and request appropriate collection relief.
How can I stop the IRS from garnishing my wages?
You may be able to stop an IRS wage garnishment by requesting a levy release, establishing a qualifying installment agreement, or demonstrating that the levy is causing financial hardship.
The appropriate solution depends on your tax balance, filing compliance, income, and financial circumstances. If the IRS has already contacted your employer, acting quickly is important because the levy may continue affecting future paychecks until it is released.
Foxworth Tax Defense can review your IRS account, evaluate available collection alternatives, and communicate with the IRS on your behalf.
Will an IRS payment plan stop a wage garnishment?
An IRS installment agreement may help stop or prevent wage garnishment, but establishing a payment plan does not automatically guarantee that an existing levy will be released.
If you qualify for an installment agreement, the IRS generally must release a levy on wages when the agreement provides for release under applicable rules. However, it is important to confirm that the IRS has issued the levy release and that your employer has received it.
Foxworth Tax Defense can help you evaluate payment plan options, negotiate with the IRS, and request a levy release when appropriate.
IRS Wage Garnishment vs. Bank Levy: What's the Difference?
IRS Wage Garnishment (Wage Levy)
An IRS wage levy requires your employer to send a portion of your earnings directly to the IRS to pay outstanding tax debt. Unlike a one-time bank levy, a wage levy generally continues with each paycheck until the levy is released or the tax obligation is resolved.
IRS Bank Levy
An IRS bank levy allows the IRS to seize funds from your bank account. Generally, the bank must hold the affected funds for 21 days before sending them to the IRS. During this period, you may be able to request a levy release if you qualify.
Why the Difference Matters
A wage levy can reduce your ongoing income, while a bank levy can affect money already in your account. Understanding which collection action you're facing helps determine the appropriate next steps.