Stopping an IRS Wage Garnishment: Immediate Relief Options

The IRS has authority under federal law to collect unpaid tax through wage garnishment. Once the levy is in place, an employer is legally required to withhold part of the employee’s earnings each pay period and send it to the IRS. Garnishments can be financially disruptive but are not irreversible.

How Wage Garnishment Begins

Before a levy is issued, the IRS generally sends a series of notices: CP14, CP501, CP503, CP504, and finally a “Final Notice of Intent to Levy” with a notice of the right to a hearing. If no satisfactory response or arrangement is made, the IRS may direct the employer to begin garnishment.

Effect on Income

The amount withheld is determined by IRS tables based on filing status, pay frequency, and number of dependents claimed. Amounts above the exempt threshold are sent to the IRS each pay period until the liability is paid in full or the levy is released. Interest and penalties continue to accrue on any unpaid balance.

Steps to Stop or Reduce Garnishment

The levy may be released or modified if the taxpayer:

• enters into an approved installment agreement,
  
  

• successfully applies for Currently Not Collectible (CNC) status by demonstrating that income barely covers necessary living expenses,
  
  

• submits a qualifying Offer in Compromise, or
  
  

• demonstrates that the levy creates an immediate economic hardship as defined by IRS regulations.
  
  

In some cases, procedural errors — for example, lack of proper notice — can also be grounds for release.

Documentation Typically Required

To seek release or modification, the taxpayer must provide recent pay statements, a detailed household budget, proof of essential expenses such as rent, utilities, medical costs, and any IRS levy notices received.

Role of Professional Representation

Practitioners such as Pivot Tax can review the IRS account transcripts, determine the quickest relief path, prepare and submit the necessary request — often on Form 12153 for a collection-due-process hearing or a direct levy-release request — and communicate with the assigned IRS revenue officer to expedite action.

Conclusion

While wage garnishment is one of the IRS’s most forceful collection tools, taxpayers have established rights to request relief. Acting promptly, supported by complete documentation and knowledgeable representation, can halt or reduce the levy and lead to a manageable resolution plan.