Tax Resolution · Cleveland, OH

IRS Wage Garnishment (Wage Levy).

An IRS wage levy, often called wage garnishment, takes part of every paycheck until it is released. Unlike a bank levy, it continues until the debt is paid or the IRS releases it.

How a wage levy works

After the required notices, including the final notice of intent to levy with its 30-day hearing right, the IRS can send your employer a wage levy (Form 668-W). Your employer must pay the IRS everything above an exempt amount from each paycheck. The levy is continuous: it stays in place across pay periods until it is released.

How much of your pay is protected

The exempt amount is based on your filing status and number of dependents, using the table in IRS Publication 1494. The levy includes a statement for you to complete and return to your employer. If you do not return it, the exempt amount is figured as married filing separately with no dependents, which is usually the lowest amount.

Ways a wage levy may be released

  • Setting up an installment agreement or other resolution with the IRS.
  • Showing economic hardship: the levy leaves you unable to pay basic living expenses.
  • Paying the balance, or showing the levy was issued in error.
  • A timely Collection Due Process request, if you are still within the 30 days after the final notice.

Documents to gather

  • The wage levy notice (Form 668-W) and IRS notices
  • Recent pay stubs
  • Monthly expense records and bank statements

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How fees work

We quote a flat fee after the free consultation, once we know what the work involves, and agree the scope with you before any work starts. Amounts owed to the agency, and any agency fees, are paid to the agency, not to us. No one can promise a particular result: the agency decides, and our job is to present your case accurately and on time.

Frequently asked questions

Will my employer know?

Yes. The levy is sent to your employer, who must comply with it.

Can my employer fire me because of an IRS levy?

Employment protections depend on federal and state law; ask an employment attorney if this is a concern. Our focus is getting the levy resolved with the IRS.

Official sources

Last updated · General information, not tax or legal advice. Read the disclaimer.

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