What is an IRS Wage Garnishment?A wage garnishment is a measure taken by the IRS in which they contact your employer to withhold a portion of your earnings. Your employer is then required to submit that money to the IRS, to satisfy your IRS debt. Note that there will also be penalties and interest accrued on the amount you originally owed.
How to Stop an IRS Wage Garnishment:The most apparent way to stop an IRS Wage Garnishment is to pay them off in full. Obviously, most people cannot afford to do that, so luckily, there are other options available.
- Installment Agreement: The IRS has a payment option available, called an Installment Agreement. This is a way to pay your debt over time, in monthly payments. If you make timely payments and pay the amount in full, you may be able to reduce or eliminate the penalties and interest. Read more about installment agreements.
- Offer in Compromise: An offer in compromise allows you to possibly lower the amount you owe to the IRS, by submitting them an offer of what you think you can pay. You will send in your offer with a 20% payment and the amount of the fee to set up the offer. If the IRS accepts, you can usually make 5 payments or less to satisfy the amount owed. Find more information about an Offer in Compromise.