Did you receive a Wage Garnishment from the IRS, a 668W. Get help, FAST.
The IRS Wage Garnishment is a continuous levy on wages and other income. If you need professional tax help call our firm today. We can get immediate results.
How we get an Immediate Release of Wage or Bank Levy:
1. We immediately send a power of attorney to the IRS letting them know we are now your representative. You will never have to speak them.
2. We will make sure your tax returns are filed and current. If they are not filed, we will prepare and file your tax returns.
3. We will secure a required 433-F (IRS financial statement), verify the income and expenses and work out a settlement agreement.
4. Settlement agreements can be in different forms:
a. Hardship. Hardship cases usually go into a 3 year suspended status because of an inability to pay. This is also called currently noncollectable.
b Payment Agreements are agreed upon monthly installment payments to the IRS.
c. Offer in Compromise. A much longer and detailed process of tax settlement. We will discuss in detail with you the merits of each.
5. The IRS will then fax to your payroll department, bank, or third party a Release Of Levy.
The IRS Continuous Effect of Levy on Salary and Wages
Unlike other levies, a levy on a taxpayer’s wages and salary has a continuous effect. It attaches to future payments, until the levy is released. Wages and salary include fees, bonuses, commissions, 2
When other income is levied, the levy reaches payment the taxpayer has a fixed and determinable right to. If the taxpayer’s right to that payment is not dependent upon the performance of future services, then the levy will reach the future payments as well.
A Form 668-A is issued to levy an author’s royalties. The author has a fixed and determinable right to royalties for books that have already been published. The levy reaches royalties for sales of those books in the future. The levy does not reach royalties for books that are written and published later. A new levy must be served to take those royalties.
Exempt Amount
Part of the individual taxpayer’s wages, salary, (including fees, bonuses, commissions and similar items) and other income, as well as retirement and benefit income, is exempt from levy.
The weekly exempt amount is:
The total of the taxpayer’s standard deduction and the amount deductible for exemptions on an income tax return for the year the levy is served.
Then, this total is divided by 52.
Income that is not paid weekly is prorated, so the same amount is exempt.
In addition, the amount the taxpayer needs to pay court ordered child support is exempt.
The support order can originate from a court or administrative process under the laws and procedures of a state, territory or possession.
If support is allowed, the same child can not be claimed as an exemption for figuring the exempt amount. See IRM 5.11.5.4 (2)a above.
If Then
The taxpayer has already shown proof of the required child support payment Write on the levy form, “Under section 6334 (a)(8) of the Internal Revenue Code, $ ____________________is exempt from this levy.”
The taxpayer shows proof of the child support after the levy is served Release enough of the levy so the support can be paid.
The taxpayer is not entitled to the support exemption unless the support is being paid.
Consider getting the taxpayer to have the child support payment withheld and sent directly to the person with custody.
Or, the taxpayer may make the child support payment through the Service, and the Service will forward the payment. When there is no open assignment, have the payments sent through Submission Processing. This may happen if the payments are being monitored in the campus.
