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Writer's picture: Lenard de Guzman, EA, NPTILenard de Guzman, EA, NPTI

Navigating the IRS Maze: Solutions for Bank Levy and Wage Garnishment


Facing an IRS bank levy or wage garnishment can be a daunting and stressful experience. These measures, employed by the IRS to collect unpaid taxes, can significantly disrupt your financial stability. However, it's important to remember that you have options and can take steps to resolve the situation.


1. Understanding the Situation

The first step is to understand the reason behind the levy or garnishment. This involves reviewing IRS notices and contacting the IRS directly to clarify any discrepancies or errors. Accurately identifying the tax liability is crucial for determining the appropriate course of action.


2. Exploring Payment Options

If the tax debt is valid, consider exploring payment options with the IRS. The agency offers various payment arrangements, such as installment agreements or offers in compromise, to help taxpayers settle their debts in a manageable manner.


3. Seeking Professional Assistance

Seeking professional assistance from a tax attorney or enrolled agent can be invaluable. These experts can guide you through the complex IRS procedures, negotiate with the IRS on your behalf, and ensure your rights are protected throughout the process.


4. Requesting a Levy or Garnishment Release

In certain circumstances, you may be eligible for a levy or garnishment release. This could be due to financial hardship, erroneous levies, or if you've entered into a payment agreement with the IRS.


5. Appealing IRS Decisions

If you disagree with IRS decisions regarding levies or garnishments, you have the right to appeal. The appeal process provides an opportunity to present your case and potentially overturn unfavorable decisions.


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