Garnishing your wages—that is, automatically deducting a certain amount from your paycheck until your tax bill is paid in full—is a common technique of the IRS. Unfortunately, though, not all government bureaucrats are equally empathetic when calculating how much of your paycheck to garnish. If you have a large number of dependents, and don't earn that much money in the first place, the percentage will probably be fairly low, but still enough to cause a certain degree of hardship. But if the authorities are less touchy-feely, they may choose to take half of your wages, no matter what the consequences for you or your family!
Assuming that your wage garnishment doesn't drive you into homelessness or bankruptcy, it can still have serious effects on your economic health. Obtaining a loan, or renegotiating a mortgage, will be virtually impossible until your tax debt is paid in full, and even then the bank may consider you a bad risk. (After all, you withheld money from the IRS; why wouldn't you do the same with your lending institution?) If your paycheck isn't as big as it used to be, you may be forced to pay the minimum on your credit cards, or even skip some payments entirely, which will dig you deeper into a hole of bad credit. Given these considerations, you may not be surprised to learn that wage garnishment is often a proximate cause of divorce or separation!
Ideally, you need to hire an experienced tax lawyer before, and not after, the IRS garnishes your wages. Call the law firm of Travis W. Watkins, PC today for a free consultation!