Evertise
03 Nov 2022, 19:54 GMT+10
So, the time has come when you have to pay the taxes. But you forgot the due date, packed up, and left for Hawaii! On returning, you realize you have spent all the money, and now you do not have enough to pay the taxes. It has happened quite a few times, and the IRS sends that dreaded message or notice.
You ignore it and move ahead with life as if nothing has gone wrong. But when you receive the Final Notice, you realize all of the mistakes you have made in life with money. This is when you ask yourself, 'can the IRS garnish wages?'
The answer is plain, yes, and this could be through the creditors dragging you to court. The penalties are high, and there are ways to prevent any issues regarding paying back. Here's how!
Pick the Installment Agreement
You have the option to pay back in small installments. You may know of the financial constraints or the EMI you may have to pay back for your home loan. But it is also for you to note that the IRS will garnish nothing more than 25% of the disposable income or whatever the amount is more than 30 times the federal minimum wage.
Pay Back in Whole
Now that you decided to pay back, you can alternatively go for repaying in one whole amount. It is great as it may cause no headache whatsoever. There are different ways of paying back this, even if you have a few hours left or immediately wish to stop the garnishments. Call the number and pay on the phone or even use your bank account to pay back.
Try Convincing about Low Salary
It may so happen that you can state your low income and the struggles you may face. It means you tell the IRS your financial state, and they might reconsider your amount. They may reduce the payback amount considering your hardship. You may even bargain and try to reduce the amount by a huge margin. It has to comply with the eligibility criteria they would have set.
Go for the Dispute
If you have never failed to date or have all the supporting files in place, you may even earn a chance to file a dispute. It means you have the chance to reduce the payback amount. You may even go for filing for bankruptcy. However, when you opt for Chapter 13, you are telling the IRS that you are a wage earner. You will also need to file the tax returns four years after filing for bankruptcy.
Ensure that you are just placing your debts in order and not just discharging the same. Make these payments over a time when you can pay back in time.
The Cautious Step
Many people try to struggle and make some cost cuts to pay back all of these dues and save themselves from any penalties from the IRS. It is advisable to go for the same and ensure there is less hassle from the IRS.
The IRS garnishes your wages, and it's very painful. In addition to the above tips, you can hire tax professionals from Silver Tax Group. Contact them for a free evaluation.
Get a daily dose of Austin Globe news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Austin Globe.
More InformationSAN FRANCISCO, California: Grammarly is doubling down on AI-powered productivity tools with the acquisition of Superhuman, a sleek...
NEW YORK, New York -U.S. stock markets closed with broad gains on Thursday, led by strong performances in U.S. tech stocks, while European...
LONDON/STOCKHOLM: The Persson family is ramping up its investment in the H&M fashion empire, fueling renewed speculation about a potential...
PARIS, France: L'Oréal is making a fresh play in the booming premium haircare segment with a new acquisition. The French beauty conglomerate...
MENLO PARK, California: Robinhood is giving European investors a new way to tap into America's most prominent tech names — without...
NEW YORK, New York - U.S. stocks diverged on Wednesday for the second day in a row. The Standard and Poor's 500 hit a new all-time...
WASHINGTON, D.C.: In a significant ruling last week, the U.S. Supreme Court upheld a Texas law requiring age verification for users...
The measure is aimed at exterminating a flesh-eating bug that could devastate the countrys beef industry US authorities are preparing...
The measure is aimed at exterminating a flesh-eating bug that could devastate the country's beef industry ...
Broward County [Florida], July 2 (ANI): Left-hand batter Shimron Hetmyer's unbeaten 78-run knock guided Seattle Orcas to victory over...
Washington DC [US], July 2 (ANI): Actor Dwayne Johnson has a very special bond with singer and rapper Jelly Roll, and in fact, his...
Washington DC [US], July 2 (ANI): NASA astronaut Anil Menon has been assigned his first mission to the International Space Station,...