What To Do If You Are Threatened With Wage Garnishment

Submitted by: Lane Casler

One problem that thousands of citizens face each year is that they owe back taxes to the IRS that they can’t afford to pay. In some cases, the person has no assets. In others, the person does have assets. The IRS approaches these two people in different ways.

In either case, however, you do have options. If you have no assets of value and no income, as well, you can request that the IRS change the status of your case to “currently uncollectible”. If they approve your request, they will defer attempting to collect monies from you. You will, of course, have to provide documentation to indicate your financial status.

Now, if you’re like many people who are behind in their tax payments, you actually do have assets. You also may have a job. But, most likely your assets may be so minimum and your earnings so low that you simply are unable to afford paying the taxes you owe without placing the wellbeing of your family at risk. In these type of cases, you may be able to get a hardship exception.

Doing this, however, will require proof from you. You will have to show that making payments to the IRS will create an economic hardship for your family. If you can do this, the IRS may re-classify the status of your account to “currently uncollectible”. This re-classification does not mean you are in the clear. You will still owe the IRS. The new status, however, will give you a reprieve of a period of twelve to eighteen months. At that time, your account will be reevaluated. If your financial condition has improved sufficiently, you will then be expected to make payments on what you owe.

The last scenario is where you actually have assets and a job that is paying you sufficiently enough to keep you out of hardship status. In this case, you may be able to make arrangements with the IRS to repay your back taxes in either a lump sum or in installments.

But, regardless of whether or not you can afford to pay you back taxes, it is imperative that you respond, in some way, to the notification. If not, the IRS will then be fully empowered to garnish a certain percentage of your paycheck. They will also have the authority to go after your assets. These includes things such as your bank account, checking account, funds, and the like.

When it comes to dealing with the IRS, many people are intimidated by the prospect of going head to head against an agency as powerful as the IRS. It also doesn’t help that many of their regulations are difficult to decipher. In addition, many citizens also don’t have a full understanding of their rights under our laws.

Because of this, they are easy to intimidate. And, unfortunately, they often give in to demands without really understanding their options. In cases such as this, depending on how much you owe, it may be to your benefit to seek the services of a good tax attorney who has experience in negotiating with the IRS.

About the Author: For additional articles and info on bankruptcy and credit info, please visit

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