Tax debt is one of the major economic crises that any taxpayer may come to face. Whether they have missed their tax filing date, submitted a falsified tax record, or simply miscalculated their tax amount, the taxpayer is at risk of owing back taxes to the government. Once your tax file is audited or the missing back tax amount is brought to the notice of Internal Revenue Services or IRS, you can end up hearing from IRS seeking a clarification regarding the same. If a satisfactory response is not received by the IRS they may initiate the process of tax debt recovery. The Tax debt consists of not only the unpaid tax amount called the back taxes, but also some fines and penalties as well as the interest on the unpaid taxes that are added by the IRS. Every year, many taxpayers unwittingly become involved in such a situation regardless of their intentions.

What are IRS collection actions?

IRS can initiate several collection actions once they have established that you owe a tax debt. These can include federal tax lien, tax levy including seizure of property and wage garnishment. The wage garnishment is usually the final action that the IRS initiates to recover the tax debt. Before wage garnishment, other actions such as bank levy may be initiated already to seize the savings of the taxpayer that is kept in the bank accounts. A tax levy can also confiscate the properties of the taxpayer including but not limited to commercial properties, residences, boats, vehicles, etc. Other assets of the taxpayers can also be seized by the IRS under the actions to collect tax dues.

What is wage garnishment?

Wage garnishment is a particularly harsh action of the IRS, executed through the employer of the taxpayer. Under wage garnishment which is sometimes referred to as garnishment, IRS can seize a part of your wages directly from your employer. Once the employer received the notice of wage garnishment for you, they have to comply or face legal actions themselves. Under wage garnishment, IRS leaves you with enough amount to take care of the basic necessities of yourself and your dependents. The lesser number of dependents you have listed under your name, the more amount that the IRS can take from your wages.

What to do if you are facing a wage garnishment?

If you have received a notice from IRS regarding any of the collection actions you must respond promptly and accurately state the situation. It must be a priority for you to understand the consequence of finding yourself in this position and more importantly know the options that are present to you. It is also worthwhile to contact a tax attorney so that you can resolve the situation. The wage garnish can be relaxed and even lifted if you can prove to IRS that you are facing financial hardships, pay back the tax debt, or get a payment agreement with IRS. National Tax Attorney which is one of the most reputed tax firms in the USA, is an expert at getting payment agreements and can also negotiate with the IRS to drop the penalties and reduce the rate of interest on your back taxes. You can contact National Tax Attorney at their official website.