There's a reason the IRS prefers the phrase “wage levy” to “salary garnishment.” In fact, garnishing your salary—the practice by which the IRS deducts a certain percentage from your paycheck before it finds its way into your pocket—is essentially a levy imposed on your income. The key point is that the IRS can impose a levy not only on your income, but also on any other income stream you might have over and above your salary, including:
- Social Security payments
- Bank accounts
- Commissions from sales
- Stock dividends
- Lottery winnings
The government's ability to levy does not end there. If the IRS chooses to impose a levy on your property, you may be forced to sell (or at least trade in) your car or vacation home, as well as various other personal possessions.
Of course, it's much easier for the IRS to garnish your salary than to sell off your possessions. All that's required for the former is an IRS revenue agent to pay a visit to your employer (who may be surprised, and none too pleased, to discover that you owe a huge back tax bill to the government).
Ideally, you want to engage the services of an experienced Oklahoma tax attorney long before the word “levy” rears its ugly head, and preferably as soon as you get a notice of collection from the IRS, informing you that you have 30 days either to settle your bill in-full or request a hearing.
Are you an Oklahoma resident whose salary is being garnished by the IRS? Call the Oklahoma tax lawyers at Travis W. Watkins, PC (800-721-7054) for a free consultation today!