Leatherneck BookkeepingCall (208) 614-1965IRS taking your paycheck? Let's get a plan to stop the garnishment.
An IRS wage garnishment (the IRS calls it a wage levy) can take a big part of every paycheck until the debt is paid or the levy is released. The sooner you act, the more options you have.
Want it stopped fast? Many garnishments can be released in as little as 48 hours once the IRS has what it needs. Every case is different, and timing depends on things like unfiled returns, but we move the same day you call.
How an IRS wage garnishment works
The IRS sends your employer a Form 668-W, Notice of Levy on Wages. Your employer must keep sending part of each check to the IRS until the levy is released. Unlike most creditors, the IRS does not need a court order. Only a set amount, based on your filing status and dependents, is exempt (IRS Publication 1494), so the rest can be taken.
Before a levy, the IRS normally sends a final notice of intent to levy with your appeal rights (often Letter LT11 or Letter 1058). If you got one of those, call now. Deadlines matter.
When the IRS must release a wage levy
Under IRS rules (IRC section 6343), a levy is generally released when, for example:
- you pay the balance, or the collection period has ended;
- you set up an installment agreement (payment plan) whose terms don't allow the levy to continue;
- the levy creates an economic hardship, meaning you can't meet basic, reasonable living expenses. This usually requires full financial information;
- releasing the levy will help you pay the tax.
Most options also require that all required tax returns are filed. If some aren't, we can help with that first.
- Free call. Tell us what letter you got or what's being taken.
- Form 8821. You sign it, and we pull your IRS transcripts so we can see exactly what the IRS sees: balances, years, unfiled returns, and notices.
- A plan in plain English. We explain your options (payment plan, hardship, penalty relief, filing missing returns) and what the IRS will need from you.
- We prepare the paperwork with you: financial statements, missing returns, and letters.
- We get on the phone with you. When you call the IRS, we join the call and help you. You speak for yourself, and we're right there.
Talk to the owner directly. 30 years of tax experience.
Free consultation. Plain answers. Nampa, Idaho. Helping clients nationwide.
Call (208) 614-1965Request a free consultationCommon questions
How fast can a wage garnishment be released?
It depends on your situation and how quickly the IRS gets what it needs. A hardship release or a payment plan can sometimes be set up on a single call once the paperwork is ready. We can't promise a timeline, but we work fast.
Will the IRS take my whole paycheck?
No, part of each check is exempt, but the exempt amount is often small. It's based on your filing status and number of dependents (IRS Publication 1494).
Do I have to have all my tax returns filed?
Usually, yes. Payment plans and most relief options require that required returns are filed. We can prepare missing returns.
Can you talk to the IRS for me?
No. We don't represent clients before the IRS. With your Form 8821 we see your IRS records and notices, and we join you on your call to the IRS and help you through it while you speak for yourself.
Do you only help people in Idaho?
No. We're based in Nampa, Idaho, and help clients nationwide by phone, email and our secure client portal.
Can I be fired over an IRS wage levy?
Federal law (Consumer Credit Protection Act, 15 U.S.C. § 1674) says an employer can't fire you because your pay is being garnished for one debt. That protection doesn't cover you if your pay is garnished for two or more separate debts, and some states add more protection. If you think you were fired over a garnishment, talk to the U.S. Department of Labor Wage and Hour Division or an employment attorney. Source: 15 U.S.C. § 1674; dol.gov Fact Sheet #30
Can the IRS take my bonus, commissions or overtime?
Yes. An IRS wage levy (Form 668-W) covers wages, salary, bonuses, commissions and similar pay. The exempt amount is figured on your total pay, so extra pay mostly goes to the IRS. Source: IRS Internal Revenue Manual 5.11.2; IRC § 6331
How much of my paycheck can the IRS take?
Unlike other creditors, the IRS isn't held to the usual 25% limit. You keep only an exempt amount based on your filing status and number of dependents (IRS Publication 1494); the rest goes to the IRS. Fill out the Statement of Exemptions your employer gives you within 3 days, or the IRS figures you as married filing separately with no dependents, which is the smallest exempt amount. Source: IRS Publication 1494; IRC § 6334(d); Form 668-W instructions
Will my employer find out?
Yes. A wage levy is sent to your employer, who has to follow it. A bank levy goes to your bank, and your employer isn't told. Getting on a plan before a wage levy is the best way to keep it private. Source: IRS Form 668-W
Can the IRS take my Social Security, VA benefits or unemployment?
Social Security: yes, the IRS can take up to 15% of each payment through the Federal Payment Levy Program. VA service-connected disability, unemployment benefits and workers' compensation are exempt from IRS levy by law. Once benefits are deposited, money in a bank account may still be reachable, so call before it happens. Source: IRC § 6331(h) and § 6334(a)(4), (7), (10)
Can the IRS take my tax refund?
Yes. The IRS applies federal refunds to back taxes it's owed. After a CP504 notice, it can also levy your state tax refund. Source: IRC § 6402; IRS CP504 notice page
Can the IRS levy my bank account and my paycheck at the same time?
Yes. The IRS can use more than one levy at once. A wage levy keeps going every payday until it's released; a bank levy takes what's in the account the day the bank gets it. Source: IRC § 6331(e); IRS 'How do I get a levy released?'
How fast can a levy be released?
The IRS has to release a levy in certain cases, for example when it causes an economic hardship (you can't pay basic living expenses), when you set up a payment plan whose terms don't allow it, or when the debt is paid. A release can happen quickly once the IRS has your financial information, but we can't promise a timeline. Have your employer's or bank's fax number ready. Source: IRC § 6343; irs.gov 'What if a levy is causing a hardship'
Can the IRS take my spouse's pay?
Only if your spouse also owes, for example on a joint return. If the debt is yours alone (say, from before you married or a separate return), the IRS shouldn't levy your spouse's wages, but money in a joint bank account can be levied. Community-property states have special rules. If your spouse's debt landed on you, ask us about Innocent Spouse or Injured Spouse relief. Source: IRS Publication 971; IRS Form 8379
Related help
Leatherneck Bookkeeping is not a law firm and does not represent clients before the IRS or any state tax agency. With your signed IRS Form 8821, we can pull your IRS transcripts and receive copies of your IRS notices. When you call the IRS, we join the call and help you, but you speak for yourself. Results depend on your facts and IRS rules; no outcome is guaranteed.