IRS Wage Garnishments

When the IRS begins taking money out of your paycheck, it can feel sudden and impossible to stop. In reality, most IRS wage garnishments start after a series of notices, missed deadlines, and collection steps that the government is allowed to use when a tax balance stays unpaid. The levy is serious, but it is not the end of the road. With the right approach, many wage levies can be released, reduced, or prevented before they begin, especially when the underlying tax problem is addressed in a way the IRS will accept.

Frazier Law helps individuals, families, and businesses respond to IRS wage garnishments with a focus on fast stabilization and long-term resolution. Led by principal attorney Charles R. Frazier and certified public accountant (CPA) Rick Miller, the firm has assisted clients since 2009 with tax controversies and IRS defense. With a multi-state practice and federal authority, and licensing in Tennessee, Michigan, and Texas, Frazier Law handles complex federal tax matters regardless of where you live. Charles is a former IRS agent and holds an LL.M. in Taxation. He is also a Chartered Financial Consultant (ChFC).

What an IRS Wage Garnishment Really Is

Most people use the term “wage garnishment,” but the IRS usually uses a “wage levy.” A levy is the legal taking of property to satisfy a tax debt. When the IRS levies wages, it sends a notice to your employer directing the employer to send a portion of your pay to the government. The employer must comply.

Wage levy versus other IRS levies

A bank levy generally captures what is in the account at the moment the levy hits. A wage levy works differently. Under federal law, the effect of a levy on salary or wages is generally continuous, meaning it attaches to future paychecks until it is released.

This is one reason wage levies feel so disruptive. If nothing changes, the levy can keep taking money from each paycheck, not just once.

The levy does not take everything, but it can feel like it does

The IRS must allow an exempt amount of take-home pay so you are not left with zero. The exempt amount is based on your filing status, pay frequency, and dependents, using tables published by the IRS. In practice, that exempt amount can be far less than what you actually need to pay rent or a mortgage, buy groceries, cover transportation, or keep up with other critical obligations. 

How Wage Levies Start

IRS wage levies rarely appear out of nowhere. They usually follow a predictable sequence.

The IRS must generally give notice before levying wages

Before the IRS levies, it typically sends notices about the balance due and requests payment. If the issue remains unresolved, the IRS can send a final notice of intent to levy that also includes your right to request a hearing. One common version is LT11 or Letter 1058. 

Deadlines matter here. If you act within the window provided in the final notice, you may be able to stop levy action while your appeal rights are pending.

Once the levy is issued, your employer receives the wage levy form

The wage levy is typically served on the employer using Form 668-W. The employer then begins withholding and sending the levy proceeds after the required timing rules. The IRS notes that employers generally have at least one full pay period after receiving the wage levy before they are required to begin sending funds. 

That short window is often your best chance to intervene quickly and seek a release.

The IRS Forms and Notices You May See

IRS collection paperwork can be confusing, especially when the words look similar and the stakes are high. A wage garnishment case often involves a small set of documents that tell you where you are in the process.

LT11 or Letter 1058: final notice and hearing rights

If you receive LT11 or Letter 1058, treat it as an urgent legal deadline, not just another bill. It signals the IRS intends to levy and that you may have Collection Due Process rights, which can be powerful when used correctly. 

Form 668-W: notice of levy on wages

This is the document served on your employer. It instructs the employer on withholding and includes information about calculating the exempt amount.

Publication 1494: exempt amount tables

Publication 1494 contains the tables used to determine how much of your take-home pay is exempt from the wage levy. The “take-home pay” concept is important because the exempt amount is calculated after certain payroll deductions, and the result can still leave you with a very lean paycheck.

Why IRS Wage Garnishments Are So Aggressive

The IRS is not a private creditor. It has collection authority that is broader than what most people expect, and it often does not need a court judgment to levy wages.

The IRS can levy without going to court

Many wage garnishments in consumer debt cases involve a lawsuit and court order. IRS wage levies usually do not. Instead, the IRS follows its administrative process and notice rules, then serves the levy.

Continuous levies keep pressure on the taxpayer

Because wage levies generally continue until released, they create steady pressure to force a resolution. That pressure can be overwhelming, especially for households with fixed expenses.

Immediate Steps to Take If Your Wages Are Being Garnished

If a wage levy has already begun, speed matters. The best first move is usually to stabilize the situation so you can protect your basic living expenses while pursuing a durable solution.

Confirm what is being levied and for which tax periods

Wage levies may be tied to specific tax years, but they can also relate to multiple assessed periods. It is important to confirm what the IRS says you owe, whether all returns were filed, and whether the balance includes penalties and interest that can be addressed strategically.

Do not ignore your employer’s involvement

Employers must comply with an IRS wage levy. They cannot simply decide to stop withholding because an employee asks. The path forward typically involves working directly with the IRS to secure a release or modification.

Gather the right financial information quickly

To negotiate with the IRS, you will usually need a clear picture of income, expenses, assets, and liabilities. This is not busywork. The IRS uses financial information to determine what you can pay, whether hardship exists, and what collection alternatives may be appropriate.

How Frazier Law Works to Stop or Release a Wage Levy

A wage levy case has two tracks that must be handled at the same time. One track focuses on immediate relief. The other focuses on the underlying tax problem so the levy does not return.

Track one: pursue rapid levy relief

Depending on the facts, levy relief may involve requesting a release, demonstrating economic hardship, showing the levy is creating an inability to meet basic living expenses, or establishing that the levy should not have been issued in the first place.

In appropriate cases, the firm can work toward a release based on a viable payment arrangement, a pending appeal, or a collection alternative that the IRS will accept.

Track two: resolve the tax debt in a way that sticks

Even if a levy is released, the IRS can levy again if the tax remains unresolved and deadlines pass. A durable plan matters. That can involve an installment agreement, an offer in compromise when legally and financially appropriate, or a currently not collectible status when the taxpayer cannot pay without hardship.

Common Resolution Options That Can Stop Wage Garnishments

Every case is different, but several resolution paths commonly lead to levy relief when they are prepared and presented correctly.

Installment agreements

A payment plan can sometimes stop enforced collection. The key is selecting the right type of agreement and presenting financials in a way that supports affordability. A poorly structured plan can fail, and defaulting can place you right back in the levy cycle.

Offer in compromise

An offer in compromise is a formal settlement program. When appropriate, it can resolve the debt for less than the full amount based on the IRS analysis of your ability to pay. Offers require careful preparation, accurate financial disclosures, and a strategy that accounts for the IRS rules on reasonable collection potential.

Currently not collectible status

If paying would prevent you from meeting basic living expenses, the IRS may place the account in a status where active collection is paused. Interest typically continues, and the IRS may review your financial situation later, but the immediate wage levy pressure can sometimes be relieved when hardship is properly documented.

Collection Due Process hearing and appeal strategy

If you received a final notice of intent to levy and requested a hearing on time, you may be able to pause levy action while the hearing is pending and discuss alternatives to enforced collection. The IRS explains that the final notice advises you of your right to a Collection Due Process hearing with the Independent Office of Appeals before levy action is taken. 

Issues That Can Make Wage Levy Cases More Complicated

Some wage levy situations involve special facts that require careful handling.

Unfiled returns

If tax returns are missing, the IRS may have prepared a substitute for a return that overstates the tax because it does not include deductions and credits you may actually be entitled to claim. Bringing filing into compliance is often a priority because the IRS is more willing to negotiate when returns are current.

Payroll withholding problems and estimated tax gaps

Some taxpayers are levied because withholding was insufficient, estimated tax payments were missed, or income changed and the tax planning did not keep up. The fix is not only dealing with the past balance. It is also making sure the current year does not become the next collection case.

Self-employed taxpayers with wage-like income

Even if you are not a W-2 employee, the IRS can pursue levies against other income streams depending on the nature of the payments and the payer relationship. The strategy may shift depending on how you are paid and what assets are exposed to collection.

Understanding the Exempt Amount and Why It Still Hurts

Many people are shocked by how much a wage levy takes. They assume a small percentage will be withheld, similar to some consumer garnishments. IRS wage levies can be larger because the system does not work as a flat percentage.

The exempt amount is based on IRS tables, not your actual budget

The IRS exempt amount tables are standardized. They do not automatically account for high local housing costs, medical expenses, or other real-world pressures. That is why some cases require a hardship-based strategy rather than a simple “wait it out” approach. 

Mistakes in exemption information can make the levy worse

If the levy paperwork is not completed correctly, or if exemption information is missing or incorrect, the withheld amount can be higher than it should be. Correcting the record can matter, especially when the household budget is already strained.

What Employers Need to Know and Why It Matters to You

Wage levies put employers in an uncomfortable position. They must follow the law, but the levy can strain the employee relationship. Understanding the employer’s role helps you respond realistically and quickly.

Employers generally must begin remitting after the timing rules

The IRS notes that employers generally have at least one full pay period after receiving the wage levy before they are required to send any funds from wages to the IRS. That short lead time can be your opportunity to contact the IRS and pursue a release before the first remittance goes out.

Your employer cannot negotiate your tax debt

Employers can ask procedural questions and must follow the levy instructions, but they cannot resolve your tax liability for you. Resolution requires communication with the IRS and a plan the IRS will accept.

Why Professional Representation Helps in Wage Garnishment Cases

Wage levy cases are not only about paperwork. They are also about timing, strategy, and credibility with the IRS. A successful outcome often depends on presenting the right financial picture, choosing the right resolution tool, and using the correct procedural channel.

Former IRS insight and CPA support under one roof

Frazier Law is led by Charles R. Frazier, a former IRS agent and tax attorney with advanced tax training, working alongside CPA Rick Miller. That combination matters when the case requires both technical tax analysis and practical negotiation grounded in accurate accounting.

A plan that stops the levy and prevents the next one

The immediate goal is usually to stop the wage garnishment. The long-term goal is to prevent repeat enforcement by resolving the underlying liability, bringing filings up to date, and building a sustainable compliance plan going forward.

Talk to Frazier Law About Stopping an IRS Wage Garnishment

If your paycheck is being hit, or you have received a final notice warning that a levy is coming, it is time to act. The sooner you respond, the more options you may have to protect income, stabilize your finances, and pursue a resolution that fits your situation.

Frazier Law helps clients nationwide with IRS defense and tax controversy matters. With experience dating back to 2009, a multi-state practice, and federal authority to handle complex tax disputes regardless of location, the firm is prepared to step in quickly when wages are at risk. Contact Frazier Law to discuss your situation, understand what the IRS is doing, and build a strategy aimed at getting you back to a normal paycheck.