IRS Wage Garnishment Notice: How to Stop It Before Your Paycheck Is Cut
IRS wage garnishment — formally called a wage levy — is one of the most disruptive collection tools available to the IRS. Unlike a one-time bank levy, a wage levy is continuous and attaches to every paycheck until it is released.
How IRS Wage Garnishment Works
A wage levy is issued directly to your employer after the IRS sends a Final Notice of Intent to Levy (LT11). Your employer is legally required to comply. The IRS uses Publication 1494 to calculate your exempt amount based on filing status and dependents — typically 20–30% of gross pay is exempt, meaning the IRS can take 70–80% of each paycheck.
The Sequence Before Garnishment
The IRS cannot garnish your wages without first: (1) assessing the tax and sending a notice and demand for payment, (2) waiting 10 days after the demand, (3) sending a CP14 and escalating notices, and (4) issuing the LT11 final notice. You have 30 days from the LT11 to request a CDP hearing.
How to Stop a Wage Garnishment
Options for stopping or releasing a wage levy include: establishing an installment agreement (the IRS must release the levy once a plan is in place), submitting an Offer in Compromise (releases levy during review), proving Currently Not Collectible status, requesting a CDP hearing if within 30 days of the LT11, or paying the balance in full. Economic hardship is another ground for levy release.
How to Get a Levy Released After It Starts
If your employer has already received the levy notice, act immediately. Contact the IRS and propose a resolution — the IRS will issue a levy release within 30 days of accepting an installment agreement. You can also request an expedited release if the levy is causing you to miss rent, mortgage, or basic living expenses (Form 911 through the Taxpayer Advocate Service).
California-Specific Considerations
California has its own wage garnishment rules for state tax debts (handled by the FTB), but IRS federal levies operate under federal law and override state exemption limits. In California, if you owe both federal and state, you could face simultaneous garnishments from both agencies — making professional help essential.
Real-World Example
A plumber in Long Beach had $47,000 in back taxes from three unfiled years. He did not respond to any IRS notices, and his employer received a wage levy notice. His take-home pay dropped from $3,800/month to $890/month. We contacted the IRS, established an installment agreement for $680/month over 72 months, and the levy was released within two weeks.
Stop IRS Wage Garnishment in Long Beach and LA County
Calculus Tax, Inc. helps taxpayers in Long Beach, Los Angeles, Burbank, and surrounding areas stop IRS wage garnishments quickly. Call (310) 598-3759 or visit 1050 W. Alameda Ave., Burbank, CA 91506.
Frequently Asked Questions
How quickly can the IRS garnish my wages after the LT11?
After the 30-day CDP period expires on the LT11, the IRS can issue a wage levy to your employer without additional warning. Acting within the 30-day window is critical.
Can I hide income to avoid a wage levy?
No. Hiding income from the IRS is a serious crime. If you are self-employed and receive income through multiple sources, the IRS can levy each source separately.
Does a wage levy affect my employer?
Your employer is required by law to comply and cannot terminate you solely because of a tax levy. They forward the levied amount to the IRS each pay period until the levy is released.
Can the IRS levy my Social Security benefits?
Yes. Under the Federal Payment Levy Program (FPLP), the IRS can levy up to 15% of Social Security benefits for delinquent taxes.
How long does it take to get a levy released?
Once an installment agreement is established, the IRS typically releases the levy within 30 days. Expedited releases for financial hardship can happen within 24–72 hours in urgent cases.
What if I am self-employed and there is no employer to levy?
The IRS can still levy your bank accounts, accounts receivable, and other assets. There is no special protection for self-employment income from IRS levy.
IRS Wage Garnishment Notice: How to Stop It Before Your Paycheck Is Cut Services in Los Angeles
Calculus Tax, Inc. provides irs wage garnishment notice: how to stop it before your paycheck is cut services to individuals and businesses throughout Los Angeles County. Our licensed CPAs are based in Burbank and serve clients in Long Beach and surrounding communities.
Our Burbank office serves clients throughout Los Angeles County including Los Angeles, Long Beach, Santa Monica, Glendale, Burbank, and more.
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