How to Protect Yourself from Wage Garnishment

Some people think they can get away without paying taxes regularly and correctly without the IRS chasing them. They have the idea that hunting you down is something IRS wouldn’t bother to do so, or would be hard for them to accomplish. That is until they experience wage garnishments.

Wage garnishments are actions taken by the IRS to collect on back taxes that you owe them. This happens when several notices were given yet there is no compliance or negotiation is returned. They come after your paychecks every month and collect your back taxes even before you have the chance to keep your money. That is not a situation you’d like to be in. Imagine expecting your salary for an important use and ending up having less than that due to IRS’ garnishments. But don’t despair; there are ways on how you can protect yourself from this situation. Read on to make sure you are protected from wage garnishments!

Prevention is better than Cure

Of course, it’s wise to avoid being put in that situation, and there is only one way to do that: by paying your taxes. However, paying taxes is not as easy as it sounds. There would be times when you would need to sacrifice a lot just to put food on the table and paying taxes seems like suicide. This hardship can be relieved by negotiating with the IRS for a payment plan that would make it easier. This, however, is not guaranteed. You need to know the best tactics to make sure your request would be approved.

Offer in Compromise

So let’s say you’re already in that unfortunate situation, what can you do?

One option that you have is to file an Offer in Compromise. This is an offer wherein you propose paying your taxes on a far lower amount instead of the amount you actually owe the IRS. This is to show that you’re willing to pay your taxes but you’re not capable. And IRS, at times, accepts this instead of the tedious process of notifying you and attacking your paychecks and other properties. However, again, this is not guaranteed. It is wise to get help from a tax resolution expert or a financial advisor to give IRS an offer they can’t refuse.

Installment Agreement

Entering an Installment Agreement is another option you can use to avoid the dreaded garnishment. This way, you can pay your taxes on a monthly installment plan and stop the burden of a wage garnishment. An Installment Agreement can be achieved by having a convincing proposal which bears your promise to pay your taxes in full together with proof that you are capable of doing so. This need to be set up properly to be approved and financial advisors knows the nitty-gritty details that you need for a winner proposal. Having an expert by your side, can ease your tax problems and can prevent other expensive unfortunate situations that might occur as a result of bad financial and tax planning.

Tax resolution is not a child’s play. This requires attention to details and tactical approach. Knowing the best route to take with the help of an expert can ensure less financial roadblocks and a clearer path. Contact us today to get the best tax resolution!