Enforced Collection Action


If you’ve received a wage garnishment notice from the Internal Revenue Service or another tax authority, it’s time to get in touch with BC Tax. We offer IRS and state tax levy help and wage garnishment representation to clients across Colorado and the country. We can help stop federal collection actions and negotiate with the tax authority so that you can preserve your income while meeting your debt obligation.

How Much Tax Debt Do You Have?

An active wage levy gives the Internal Revenue Service the ability to take money away from your paychecks to pay off your past debt. It does not matter how much or how little you make each month. The IRS is going to take what they need to be made whole again. This won’t all happen in one lump sum, but it may happen in larger amounts than you are prepared for. You can avoid all of this with a strong negotiation beforehand.

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Why the IRS Garnishes Wages

If you work with the team here at BC Tax, we will come up with the best possible solution for both you and the government. All the IRS cares about is getting paid. The only reason they issue wage levies is that they fear that payment will never come. If we can show them that you are capable of paying off your debts, you may be able to avoid having your wages garnished. The key is reaching out quickly to prevent an enforcement action — and BC Tax can help.

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How Wage Garnishment Works for Back Taxes

If the IRS believes you owe more in taxes than you’ve paid, it will assess interest and penalties until it believes you’ve satisfied your debt. If you ignore collection notices, the IRS will enforce repayment by working with your employer to seize a portion of your pay. The employer will pay the IRS directly from your paycheck until the full amount is paid, you set up a payment arrangement or the IRS releases the levy.

Unfortunately, what the IRS believes is an affordable repayment is often far beyond what the taxpayer considers realistic. Unless you work with the IRS to prevent a wage levy, you could wind up paying so much every paycheck that covering necessary expenses is impossible.

Other factors to consider if you’re facing a wage levy include:

  • How child support paid outside of your wages will be affected
  • How the IRS will treat bonus or commission payments
  • How garnishment will affect other debt repayments, such as student loans, property taxes and credit card bills

How Much Can the IRS Garnish?

How much a creditor can garnish from your wages depends on the creditor. That said, unlike credit card companies that require a court order to issue a wage levy, the IRS does not need an official judgment — it can issue one without a court order.

The IRS will look at your tax return to calculate the garnishment amount, using factors such as number of dependents and the standard deduction. In general, the IRS will levy up to 15% of your wages for back taxes, but if you also owe back taxes to a state tax authority, your state will use its own calculation.

You should keep in mind that bonus and commission payments could be subject to 100% garnishment. And although the IRS cannot garnish other types of payments, including social security and veteran income, it can seize those assets once you deposit them into your bank account.

How to Stop Wage Garnishment and Protect Your Assets

Your first step to preventing wage garnishment is to contact BC Tax. We can ensure that the IRS and your employer respect your rights as a taxpayer and employee. We can also dispute the levy if you believe it’s inaccurate, negotiate with the IRS or other tax authorities on your behalf and relieve the stress associated with wage garnishment and back taxes. BC Tax has helped taxpayers across the nation resolve their back tax problems fairly and quickly.

In order to assess your options, we will have a consultation with you. We will look over your entire situation and see what the best course of action will be. We can try to reduce your tax debts even further so you owe less to the IRS, and if we can’t, we’ll at least secure a payment plan you can commit to. We have qualified professionals which include Attorneys, CPAs, Enrolled Agents, and former IRS agents working on our team, so we know the ins and outs of the system well.

Contact BC Tax for IRS and State Tax Levy Help in Colorado

When you need tax levy protection and wage garnishment reimbursement in Denver, Colorado or anywhere else in the U.S., turn to BC Tax. Contact BC Tax today by completing our online form or calling (800) 548-4639 to learn what we can do for you.

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