by Diamond Channing

Created on: June 12, 2010   Last Updated: June 13, 2010

The Internal Revenue Service has a number of methods they use in order to collect federal taxes that are owed. Garnishing and seizing one's wages and assets is the more common method they utilize. The IRS does inform the past due taxpayer prior to taking any action by mailing a notice demanding payment within 10 to 30 days from receipt. This is the time when the past due taxpayer must take action to prevent this garnishment or levy from occurring. The balance owed quickly begins to add up from this time with compound interest and late fees.

Be sure to contact the IRS once this notice is received to arrange a monthly payment plan. If this is done and the payments are received as agreed upon, no further action will be taken. This will also stop any interest and late fees from piling up. If this is not done and the notice is ignored, the past-due tax payer will receive one last and final notice.

This notice will state the intentions of the IRS to obtain a levy against your wages as well as any real and personal property. The IRS can legally seize homes, automobiles and boats as well as garnish wages. The IRS can also seize and take any money you have in bank accounts. Even if some of that money is from receiving child support, pension or social security payments, it does not matter to the IRS and they will levy against this as well.

The IRS gives 10 days for response before they will obtain the seizure of property and the garnishment of wages. Once the Internal Revenue Service obtains the levy they will contact the employer to inform them they must withhold a certain amount every pay period which needs to be forwarded to the IRS to pay the tax debt. Usually 30 to 70% of the paycheck is garnished. The amount will be seized for as long as it takes to pay the debt in full.

The IRS can only garnish up to 50% of your net income if you are married and up to 60% if you are single. The most that can be taken from a weekly paycheck is 25%. The IRS does not need to obtain a court order for the purpose of a levy. People who are self-employed are not immune from wage garnishment as the levy will be applied by accounts receivable rather than by the employer.

Wage garnishment and seizure of property can be financially devastating as well as emotional. Preventing this from happening is the better decision. Some people feel more confident dealing with the IRS with legal assistance. There are a number of attorney's who specialize just in this area.

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