Wage garnishment is a legal process that requires an employer to withhold a portion of an employee’s earnings to satisfy a debt. In tax matters, the IRS may issue a wage levy (often called a “continuous levy”) to collect unpaid federal tax liabilities.
Government agencies and courts may also garnish wages for certain debts, including child support, student loans, and state taxes.
In federal tax cases, the IRS generally follows a structured collection process before issuing a wage levy. This may include:
• Notice and Demand for Payment
• Final Notice of Intent to Levy
• Opportunity to request a Collection Due Process (CDP) hearing
If a wage levy is issued, the employer is required to comply with the order.
Deadlines to respond can be short. Taking action promptly may preserve available rights.
Under federal law, most non-tax creditors are limited to garnishing the lesser of:
• 25% of disposable earnings, or
• The amount by which weekly disposable income exceeds 30 times the federal minimum wage
Different rules apply to tax levies and certain government debts. IRS wage levies may continue until the liability is resolved, though exemptions based on filing status and dependents apply.
California law may provide additional wage protections in some circumstances.
Certain debts may be subject to administrative garnishment without a traditional court judgment, including:
• Federal tax debt
• Child support
• Federal student loans
Procedures and defenses vary depending on the type of debt.
Depending on the situation, potential options may include:
• Requesting a Collection Due Process hearing
• Negotiating an installment agreement
• Submitting an Offer in Compromise
• Demonstrating financial hardship
• Exploring bankruptcy protections where appropriate
Eligibility for relief depends on the specific facts of the case.
Filing bankruptcy may trigger an automatic stay, which can temporarily halt most collection actions, including wage garnishment. The availability and impact of bankruptcy depend on the type of debt and individual circumstances.
Bankruptcy should be evaluated carefully with qualified legal counsel.
If you are facing IRS wage levies or other garnishment actions, Tenina Law can review your situation and explain your legal options. We assist taxpayers in matters involving IRS collection enforcement, installment agreements, and related tax debt resolution strategies.
Consultations are provided at no charge. Representation terms are discussed in advance.
Attorney licensed in California with over 20 years of legal practice in civil litigation, tax law, bankruptcy, and corporate matters. Each case is evaluated on its facts and applicable law.
We provide personalized attention, clear communication, and ongoing case evaluation. Client experiences vary based on the circumstances and results depend on case-specific facts and applicable law.