Key Insights
- IRS wage garnishment is a continuous levy — it takes from every paycheck until resolved.
- The IRS can take a very large percentage of your disposable income.
- You typically have 30 days from the Final Notice to act before garnishment starts.
- TaxWave can stop garnishment by establishing an approved IRS resolution.
What Is IRS Wage Garnishment?
Wage garnishment — technically called a "continuous wage levy" — is one of the IRS's most powerful collection tools. When the IRS issues a Notice of Levy to your employer, your employer is legally required to withhold a portion of your wages and send that money directly to the IRS.
This continues every pay period until your tax debt is satisfied in full or you establish a formal resolution arrangement. Unlike a bank levy, which is a one-time event, wage garnishment is relentless — it hits you on every single paycheck.
How Much Can the IRS Take?
The amount the IRS can garnish is based on your standard deduction and the number of exemptions you claim. In many cases, the IRS is permitted to take more than half of your take-home pay. The calculation uses IRS Publication 1494, which your employer is required to follow.
For self-employed individuals or independent contractors, the IRS can issue a levy directly on your clients or accounts receivable — effectively cutting off your income stream entirely.
How TaxWave Stops Wage Garnishment
Immediate IRS Contact
We establish power of attorney and contact the IRS on your behalf within hours of engaging. We document your case and communicate your intent to resolve.
Transcript Analysis
We pull your IRS transcripts to understand exactly what you owe and why the garnishment was issued. This shapes our strategy.
Resolution Negotiation
We negotiate the fastest possible resolution — whether that's an installment agreement, CNC status, or another program — which triggers a legal requirement for the IRS to release the levy.
Levy Release
Once the IRS approves your resolution, they issue a levy release to your employer. Garnishment stops immediately.
Garnishment already started?
Even after garnishment has begun, TaxWave can often stop it within days of engaging with the IRS. The sooner you call, the sooner your paycheck is protected.
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