Delicious
Digg
Google
YahooThere are many different ways to have a wage levy released. The method you choose should be decided by your financial standing, tax situation and job. The following are some methods that can be used to release a tax levy. Start with number 1 and if you cannot use that method to release it move on to the next one and so on. If you jump too far down the list and you are able to use a prior method it will likely be rejected by the IRS or may not be the best method for you.
Pay the IRS in full - Once you pay the IRS the entire amount of taxes owed, they will release the wage levy. Most likely you have a wage levy because you cannot pay, but maybe you can borrow from family and friends if you expect to have the money to pay them back in the near future. If you cannot pay them back in the near future, do not even consider this option because there are better methods to use below.
Enter into an Installment Agreement - An installment agreement allows you pay back your taxes owed in monthly installments. If you have your filing for an installment agreement accepted, your wage levy will be released. In order to qualify you must be able to pay back all your taxes owed in a period of 3 years or less, and you must not be a high risk for defaulting on payments.
File for an Offer in Compromise – An offer in compromise allows you to settle your taxes for a fraction of what is owed. This method is only available to those taxpayers that truly have a financial situation that is so bad that it would be unfair for the IRS to hold them liable for the entire amount owed. An "offer in compromise" is a tedious and long tax filing. If you feel you are a good candidate for this, then it is a good idea to use a tax professional to help because they can help pause the levy while they negotiate with the IRS. These filings have a low acceptance rate so it is a good idea to have someone who has filed them before do all the preparations for you.
Prove Financial Hardship – If you cannot use any of the above methods you may be able to get the IRS to declare you temporarily noncollectable. When this happens it releases the wage levy and the IRS will come back to you at some point in the future to analyze your financial situation to see if it has improved enough to begin collections again.
Quit Your Job or Temporarily Quit – This method is only suggested if you are close with your employer and you can arrange something where they will hire you back or you know you can easily find another job. This method will really only buy you a couple months. When you quit your job the IRS obviously has no wages to levy. When you start a new job it makes take up to a few months for the IRS to find you again and enforce another wage levy. If you go back to your prior job the IRS will have to find out that you started working there again and go through the garnishment process again which may take several months.
No matter which method you choose it is a great idea to hire a tax professional to help with your tax problem. A tax professional can analyze your financial, tax, and work situation and quickly find you the best resolution method.
