Avoiding Wage Garnishments: What to Do When the IRS Comes After Your Paycheck

IRS Tax Fighters • August 9, 2025

Few things are as alarming as discovering that the IRS has targeted your paycheck for garnishment. When the IRS enforces a wage garnishment, generally a large portion of your paycheck is sent directly to them to satisfy your unpaid tax debt, leaving you with significantly less income to cover your essential expenses. Here at IRS Tax Fighters we assist clients who are facing wage garnishments and if you need help with this issue, call 281-962-0070 to get expert assistance.


If you’ve received a notice of wage garnishment or believe you may be at risk, don’t panic—there are steps you can take to protect your paycheck and resolve your tax debt. This blog will explain what wage garnishment is, how it works, and what you can do to avoid or stop it.


What Is Wage Garnishment?

Wage garnishment is a legal process where the IRS directs your employer to withhold a portion of your wages to satisfy an outstanding tax debt. Unlike private creditors, the IRS doesn’t need a court order to garnish your wages. Instead, they can initiate the process after issuing a series of notices and giving you an opportunity to resolve the debt.


Here’s how it typically works:


1. Notice of Intent to Levy: Before garnishing wages, the IRS sends a Notice of Intent to Levy (Form CP504), informing you of their plan to seize your assets if you don’t address the debt.


2. Final Notice and Hearing: The IRS then issues a Final Notice of Intent to Levy and Your Right to a Hearing (Form LT11 or Letter 1058). You have 30 days to request a hearing or resolve the issue before the garnishment begins.
3. Wage Garnishment Begins: If no action is taken, the IRS notifies your employer to start withholding a portion of your paycheck.

How Much Can the IRS Garnish?
The IRS doesn’t take your entire paycheck but rather a portion based on exemptions determined by federal law. The amount exempt from garnishment depends on factors like your filing status and the number of dependents you claim. However, the exempt amount is typically minimal, and the garnishment can leave you struggling to cover basic living expenses.

For example, if your monthly income is $4,000 and your exempt amount is $1,000, the IRS can garnish up to $3,000 of your wages each month.

Steps to Avoid or Stop Wage Garnishment
If you’ve received a notice from the IRS or are already experiencing wage garnishment, there are several actions you can take to protect your paycheck:

1. Address the Problem Immediately
Ignoring IRS notices will only worsen the situation. As soon as you receive a Notice of Intent to Levy, take it seriously and act promptly

2. Request a Collection Due Process (CDP) Hearing
If you receive a Final Notice of Intent to Levy, you have 30 days to request a CDP hearing. This hearing gives you the opportunity to present your case, negotiate a resolution, or contest the garnishment.

3. Enter into a Payment Agreement
One of the most effective ways to stop wage garnishment is to enter into a payment agreement with the IRS. This could include:

• Installment Agreement: Spread your payments over time to resolve the debt in manageable installments.

• Offer in Compromise (OIC): Settle your tax debt for less than the full amount owed if you qualify.

• Currently Not Collectible (CNC) Status: Temporarily halt collection efforts if you’re experiencing significant financial hardship.

4. Request Penalty Abatement
If your tax debt includes penalties for late filing or payment, you may be able to request penalty abatement. This can reduce the overall amount you owe and make it easier to resolve your debt.

5. Seek Professional Help
Dealing with the IRS can be overwhelming, especially when facing wage garnishment. A tax resolution specialist can negotiate on your behalf, develop a strategy for resolving your debt, and work to stop the garnishment quickly.  

How to Prevent Wage Garnishment
The best way to avoid wage garnishment is to address tax issues before they escalate. Here are some preventative steps you can take:

1. File Your Taxes on Time
Late or missing tax returns can trigger IRS enforcement actions. Ensure you file your taxes on time each year to avoid penalties and collection efforts.

2. Pay What You Owe or Set Up a Payment Plan
If you can’t pay your taxes in full, don’t ignore the debt. Contact the IRS to discuss payment plan options that fit your budget.

3. Respond to IRS Notices
Ignoring IRS notices won’t make the problem go away. Promptly respond to any correspondence and take the necessary steps to resolve the issue.

4. Work with a Tax Professional
A tax professional can help you stay compliant with tax laws, address potential issues early, and develop a plan to manage your taxes effectively.

What to Do If Wage Garnishment Has Already Begun
If the IRS has already started garnishing your wages, don’t despair—you still have options to stop or reduce the garnishment:

• Negotiate a Payment Plan: Contact the IRS to discuss payment options and request that the garnishment be lifted in exchange for entering into a payment agreement.

• Prove Financial Hardship: If the garnishment is causing significant financial hardship, you may be able to convince the IRS to stop or reduce the garnishment.

• Pay the Debt in Full: If possible, paying the debt in full will immediately stop the garnishment.

• Appeal the Garnishment: If you believe the garnishment is unjustified or inaccurate, you can appeal the IRS’s decision.

Taking these steps with the guidance of a tax resolution specialist can help you regain control of your finances and stop the garnishment as quickly as possible.

Conclusion
Wage garnishment can be a stressful and financially draining experience, but it’s not the end of the road. By acting promptly and seeking professional help, you can stop or avoid garnishment, resolve your tax debt, and regain financial stability.

If you’re facing wage garnishment or want to avoid it altogether, don’t wait—call IRS Tax Fighters at 281-962-0070 to discuss your options with an experienced tax resolution specialist. Let us help you take the first step toward resolving your tax issues and protecting your paycheck.