Published on: July 15, 2020

Is There a Way to Negotiate Tax Liens and Wage Garnishments?

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    Having to pay any kind of debt, is not something people find enjoyable. However, what can make this situation even worse is failing to pay your debts in the first place. Not only will this end up hurting your status with the IRS, but it can lead to wage garnishment and tax liens on your accounts. These levy actions by the federal government to collect your unpaid tax debt may seem like a devastating financial demand, but with the help of an experienced tax attorney, these issues do not have to become an impossible problem to fix.

    In today’s blog post, we will explore various programs available to those facing significant tax liens or wage garnishment issues, while also explaining how a tax attorney can provide you with the assistance you need to resolve these challenging financial situations. 

    Settle Your Debt for Less

    In certain circumstances where an individual cannot afford to pay off their total debt to the IRS within a reasonable time period, they may be able to create an offer in compromise. 

    Offer in Compromise 

    An offer in compromise or an OIC is a statement of permission that allows you to pay off less debt than you owe. In cases where the IRS finds that it is unrealistic for you to pay off your debts in full, they may agree to an OIC. However, the process of getting this permission is not as easy as many hope it to be. The IRS has specific guidelines that an individual must meet to qualify for an OIC, and the process involves supplying the IRS with a significant amount of evidence. Individuals must provide proof (in great detail) of all aspects of their financial situation- including their income, financial factors, ability to pay, expenses required to live, and asset equity. 

    How a Tax Attorney Can Help

    If you are thinking about filing for an OIC, you must sit down with a tax attorney to go through all the required paperwork, the specific IRS guidelines, and verify that you are qualified for this program. These attorneys will assist you through every detail of the application process while also helping you decide if this is the best option for you and your family. 

    Negotiate Payments

    Another viable option to stop wage levies is to negotiate with the IRS and enter into an installment agreement instead of having your wages garnished. However, in order to qualify for a payment option, you must comply with all the IRS stipulations. 

    Installment Agreement

    An installment agreement operates like any other loan, where you make agreed-upon monthly payments, including the interest until the amount that is owed is paid off. It is usually a manageable and efficient way for individuals to begin paying off their debt. To stay in this agreement, you need to make sure the payments are made on time and that the amount owed is paid in full within three years. What is great about this option is that you can obtain an installment agreement even with a bad credit score, as long as you show that you have not been negligent on your previous debts, proving that you will be able to make the agreed-upon payments. For many people, this is the most viable way for them to pay off their tax debts in monthly installments that is often much less than what their wage garnishment amount used to be. 

    How a Tax Attorney Can Help

    The best way to make this option a reality is to have an experienced tax attorney negotiate an installment agreement with the IRS. If you decide to appeal before the IRS to instate this installment agreement, it is essential to know that the IRS will determine if you qualify for this option and how much money you will be required to pay each month.

    Is There a Way To Negotiate Tax Liens and Wage Garnishments?

    The IRS will usually decide if you are eligible by analyzing several factors, including your assets, income, and monthly expenses. That is why it is important to work with a tax lawyer who can help you through the whole process, from gathering the required financial information, appealing before the IRS on your behalf, and negotiating a plan that works best for you. 

    Other Options to Consider When Facing Tax Liens and Wage Garnishments

    In certain instances, negotiating a plan to end your tax liens and wage garnishments may not be feasible. However, this does not mean that there is nothing else for you to do. Speaking with a tax attorney who understands the different tax laws can help you discover options you may not have considered before. 

    Hardship Status

    If you have fallen on hard economic times, it may be possible to show that paying the IRS will place your family in undue financial hardship, and therefore, you need to be placed on the IRS Currently Not Collectible list. This is a temporary way to stop IRS collection efforts, while you wait for your economic conditions to improve. Your tax attorney can review your financials and see if this a viable option for you. If so, they will file to have you placed into hardship status and end your tax liens or wage garnishments until you figure out a different solution to take care of your tax debt permanently. 

    Declare Bankruptcy

    Sometimes the only way you can stop IRS wage garnishments is to declare bankruptcy. When you file for bankruptcy, it will automatically stop all collections, including repossession, foreclosure, and garnishments. Keep in mind that this option can have negative repercussions on your credit score and should not be taken lightly. You will need to speak with your tax attorney to see how this alternative would work in your situation.

    Let Silver Tax Group Help You Negotiate Tax Liens and Wage Garnishments

    Having your wages garnished is not only a complicated experience but extremely stressful and frustrating. During this time, you want to make sure that you understand all of your options and make the right decisions for your situation. And the best way to accomplish these goals is to have an experienced tax attorney on your side.

    Whether you are already battling with the IRS or need help to figure out your situation before it becomes unmanageable, we are here to help you. We will provide you with the information you need to know while also figuring out the best way to stop your IRS collections problems. Do not go through this challenging situation alone; rather, let our legal team help you get through this difficult ordeal by fighting for the results that you want. Contact Silver Tax Group today to get the legal help that you need. 

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