Laws exist to protect taxpayers from confiscation of their assets. Likewise there are laws that have specific provisions regarding the collection of taxes by the IRS. These laws are important because tax collection is the principal source of revenue for the Federal government. The amount that can be seized by the IRS varies and is dependent upon the outstanding tax due as well as the total of person’s assets. However, in most cases, there is a fixed cap of 25% of the salary. Since the calculation is based on a percentage, the amount seized could be more if the person’s paycheck is more and less if the paycheck is less. Attempting to arrive at some sort of equitable agreement with the IRS is the best way to minimize tax complications and lessen the burden of repayment of the outstanding amount. If the taxpayer is unsuccessful in negotiation, the last option available would be to immediately file for bankruptcy. Filing bankruptcy is therefore a certain method to stop wage garnishment.
If an individual files for bankruptcy then all collection activities of the creditors relating to the debt come to a grinding halt. Bankruptcy is often used as a weapon by the legal community to save their clients the problems associated with a legal verdict. Also, the wage garnishment laws state that while the wages of any employee are being withheld, the employer cannot fire him. The law clearly states the protection provided to the delinquent taxpayers’ job in these situations. If the employer does terminate the taxpayers’ employment, he is subject to a fine of $1000. The wage garnishment laws are strict and specific and a taxpayer in default is advised to cooperate with the IRS if such an unfortunate incident does occur. Since everything is done with clear and specific consequence, failure to follow any federal guideline could cause further legal problems – which is the last thing desired.
If it is possible to satisfy the outstanding debts this should be done immediately. Once the debt is paid a person does not have the worry of getting sued by the creditor and having to fend off and stop wage garnishment. One must not make his creditor irate or ignore him. The taxpayer should try to explain his situation clearly and frankly to the creditor, citing specific reasons for his inability to make payments on time as well as proposing a solution. Initially opting for a lawsuit is not recommended. If an individual is in a healthy enough financial condition to pay off his debt within the allotted time period of 10 days from the date of judgment, he can stop wage garnishment immediately. Another way to utilize the wage garnishment laws is to make an appeal for one’s basic necessities like food, housing and healthcare. Declaring bankruptcy to stop IRS wage garnishment is always an option, but should be the last resort.