Owing back taxes can put a strain on you financially, especially if you owe other outstanding debts. It is even worse if the government is threatening wage garnishment. You may be wondering if you have received a letter concerning this, if the government can garnish all of your wages for back taxes and what you can do to protect yourself in the event this does occur.
How Much Of My Wages Can The government Garnish?
The government can and will garnish or levy wages, bank accounts, and property to pay back taxes owed to them. How much of your wages that can be garnished depends on certain factors like your income, if you have dependents and the frequency with which you are paid. The government can garnish from 30 percent all the way up to 80 of your wages if you owe back taxes that have not been paid. So in effect, they can take a pretty good portion but not all of your wages. They can however levy your bank account for additional funds.
Help From The government Concerning Your Back Taxes
The government is does not desire to cause anyone any undue hardship and will work with you if you owe back taxes. You need to contact them immediately if you owe them and work out payment arrangements with them through either an installment agreement, or an offer-in-compromise agreement to get your back taxes paid before the threat of wage garnishment. If you do not then you will have the added worry of the government garnishing your wages to pay back taxes leaving you with little recourse of action.
You can download the installment agreement forms, government form 9465 or the offer-in-compromise form 656 from the government website or get them in person at your local government office. You may also want to speak with a qualified tax attorney about your tax issues as they may be able to advise you on what you should do and how to go about making agreements with the government. They will also represent you in court and speak on your behalf.