The Law Offices of Arnold van Dyk

Can The IRS Garnish More Than One Kind Of Income?

Yes, the IRS can garnish more than one kind of income. They can garnish wages, retirement distributions, social security, and almost anything else you can think of.

How Long Does A Wage Garnishment Typically Last?

The IRS wage garnishment will last until the entire IRS balance is paid off unless you are able to secure a release of the wage levy or garnishment. The good news is that you can secure a release of levy by diligently working with the IRS collection unit to get a release of the levy. Once again, our office has secured wage levy releases on countless occasions.

Can The IRS Garnish My Spouse’s Income?

Yes, the IRS can garnish your spouse’s income if the tax return was a jointly filed tax return. Since California is a community property state and even if the debt does not belong to your spouse and the return was not a jointly filed return, the IRS can levy the community property portion of your spouse’s paycheck.

What Is The Difference Between a Lien And A Levy?

An IRS lien is a security interest that the IRS has on your property. Once the IRS issues a lien, the security interest attaches to your real property and other property that you may own but the IRS doesn’t actually seize that property. The lien will often show up in your credit report. If you attempt to sell your house you will be unable to do so unless the proceeds of the sale go to the IRS first. On the other hand, a levy is an actual seizure of the property. For example, if the IRS issues a levy on your wages, they will actually seize those funds. If the IRS levies your real estate, they’ll actually come to your house with agents, remove you from the premises and take the property. With that being said, levies on principal residences are not very common these days and only happen in the most egregious instances. Levies, again, on bank accounts and wages and even social security benefits are still very common.

What Should I Do If The IRS Threaten Me With A Levy Or a Garnishment?

If the IRS or Franchise tax board in California threatens you with the levy then you should contact a tax attorney to assist you in preventing a levy. You can prevent an IRS levy, but you have limited time to file a request for a collection due process hearing. Once the request for the collection due process hearing is filed, the IRS may then not place a levy on any of your income while the due process hearing is pending. During the collection due process hearing, you can work with the assigned appeal’s officer to resolve your count down through alternative collection action such as an installment agreement, an offer and compromise or being placed in not collectible status. If you’re unable to resolve your balance during the collection due process hearing, you can continue to dispute the proposed levy by filing a petition with the United States tax court.

Can I Go To Jail For Owing Taxes?

You generally cannot go to jail just for owing taxes as long as those taxes were filed and the income on the tax return was reported correctly. The IRS can bring criminal charges for not filing your tax returns and for tax evasion, meaning if you’re taking intentional steps to not pay your tax liability. However, generally you cannot go to jail just for owing taxes.

Should I File My Taxes Even If I Cannot Afford To Pay?

Yes, you should definitely file your tax returns even if you are not able to pay your taxes. It is considered a criminal offense not to file your tax returns. The IRS also charges a failure to file penalty if you do not file your tax returns on time, which will increase the amount you already owe by up to almost 50%. It is better to file tax returns if you’re not able to pay and then try to set up some type of installment agreement than not to file your tax return at all.

Should I Ever Try To Negotiate With The IRS By Myself?

Tax laws are very complicated and there are a lot of procedural pitfalls you can get trapped in if you try to resolve your IRS issues with the IRS by yourself. A knowledgeable and seasoned tax attorney can make sure you stay protected and provide you with the opportunities you may not know existed to resolve your IRS debt.

For more information on Wage Garnishment In California, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (714) 321-3369 today.

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