New Jersey Wage Garnishment Attorney for IRS Back Taxes

IRS Wage Garnishment Overview – New Jersey Wage Garnishment Attorney

When you’re dealing with IRS wage garnishment, it can feel overwhelming. Suddenly, a portion of your paycheck goes to the IRS, leaving you struggling to cover everyday expenses. Wage garnishment is one of the IRS’s most powerful tools for collecting unpaid taxes, and it can cause extreme financial hardship for taxpayers.

If you’re facing wage garnishment in New Jersey, understanding your rights and knowing how to respond can make a huge difference. At Paladini Law, we’re here to help you navigate this challenging situation and work toward a solution that enables you to regain control over your finances. Call 201-381-4472 or fill out our contact form to discuss your situation with our New Jersey wage garnishment lawyer.

Overview of IRS Wage Garnishments

When you owe back taxes, the IRS can legally claim a part of your income to pay off your debt. This process, called “wage garnishment” or “wage levy,” directly impacts your take-home pay and financial stability.

Wage garnishment means you’ll see a smaller paycheck, making it challenging to cover basic living expenses. The IRS may continue garnishing your wages until your debt is resolved or another arrangement is made. Ignoring the garnishment can make the situation worse.

The IRS has a strong legal arm to seize many assets, but you have options. A skilled wage garnishment attorney can help assess your financial situation, communicate with the IRS on your behalf, and work toward solutions to reduce or stop the garnishment.

Role of a New Jersey Wage Garnishment Attorney

A wage garnishment attorney in New Jersey can provide essential support throughout the garnishment process, including:

Assessing your financial situation: They will review your finances and help you understand your options.
Representing your interests in negotiations with the IRS: Having an attorney means you have someone to advocate for your best interests and negotiate directly with the IRS, often leading to better outcomes.
Strategies to reduce or release garnishments: Your attorney will work to reduce or eliminate the garnishment, aiming for a manageable solution like a payment plan or an Offer in Compromise.
Long-term tax resolution planning: Beyond immediate relief, attorneys help clients develop strategies to stay on top of taxes in the future, so they’re not faced with garnishment again.

At Paladini Law, we are a tax law firm serving clients nationwide. Many clients come to us when the IRS is already garnishing their wages, while others use our services to prevent a wage garnishment before it happens.

IRS Wage Garnishments: What to Expect in New Jersey

If you owe back taxes, the IRS will send you several notices and demands to pay. Eventually, the IRS will send a Notice of Intent to Levy, or Notice CP504. This will give you a chance to pay or make arrangements. Generally, you have 30 days to pay your past-due taxes or make payment arrangements.

If you don’t respond to that notice and don’t make the necessary arrangements, the IRS will send a Final Notice of Intent to Levy and Your Right to a Hearing. You now have 30 days to pay or request a hearing. If you don’t do either, the IRS will move forward with the garnishment. Your employer is legally obligated to comply with IRS wage garnishment, deducting the specified amount from your wages and forwarding it to the IRS.

Wage garnishments can apply to various forms of income, including wages and salaries, bonuses and commissions, and retirement income. Under federal and New Jersey law, you cannot get fired for a wage garnishment.

Common Questions About IRS Wage Garnishments

Here are some frequently asked questions about wage garnishment:

How much of my wages can the IRS garnish?

The IRS calculates garnishments based on your income, but they must leave you with a minimum amount to cover essential expenses. The exact amount they can take depends on factors like your filing status, number of dependents, and income level.

Can the IRS garnish my wages without notice?

No, the IRS cannot garnish your wages without warning. They are required to send you a “Notice of Intent to Levy” at least 30 days before the garnishment starts. This notice gives you time to respond and explore options to address the debt before garnishment begins. Ignoring this notice can lead directly to garnishment.

How long does it take for the IRS to garnish wages?

Once you receive the final notice, the IRS can start garnishing wages after 30 days if no action is taken. However, this process can take longer if you communicate with the IRS, seek legal help, or negotiate an alternative payment plan.

Can I stop an IRS wage garnishment?

Yes, it’s possible to stop or reduce a garnishment. This can be done by reaching an agreement with the IRS, such as a payment plan or Offer in Compromise. You can also appeal or request a hearing to challenge the garnishment. An experienced tax attorney can negotiate with the IRS to find a solution that suits your situation.

What happens if I ignore a wage garnishment notice?

Ignoring the notice can lead to immediate wage garnishment, additional penalties, and interest. Ignoring garnishment can also escalate your tax situation, as the IRS may take further action to collect your debt, including seizing bank accounts or other assets.

How do I negotiate with the IRS to reduce a garnishment?

Negotiating with the IRS is possible and often beneficial. A New Jersey wage garnishment attorney can help you propose a manageable payment plan, prove financial hardship, or submit an Offer in Compromise. This process typically involves sharing detailed financial information to show why the garnishment should be reduced or lifted.

What is the difference between a levy and a garnishment?

The IRS uses both tools to collect unpaid taxes, but they target different types of income and assets. A garnishment specifically takes a portion of your wages, while a levy allows the IRS to seize various assets, such as bank accounts or other personal property. Garnishment is one form of levy, but the IRS can use other forms of levies for asset seizure.

Can the IRS garnish Social Security benefits?

Yes, the IRS can garnish Social Security benefits, but there are limitations. The IRS can take some of your Social Security payments through the Federal Payment Levy Program if you owe federal taxes. If they use an automated process, they’re limited to garnishing up to 15% of your monthly benefit, but they may be able to seize more with a manual levy. Certain Social Security benefits, such as Supplemental Security Income (SSI), are exempt from garnishment, as these are considered need-based.

Is there hardship relief from wage garnishments?

If garnishment causes significant financial hardship, relief options may exist. You should speak with a New Jersey wage garnishment lawyer to discuss your options for hardship relief.

What are the consequences of ignoring a wage garnishment?

Ignoring a wage garnishment notice has serious consequences, including financial and legal. From a financial standpoint, a garnishment reduces your take-home pay, making it harder to cover everyday expenses. From a legal standpoint, you can face additional penalties, interest, and potential legal action.

Steps to Take if You Receive a Wage Garnishment Notice

Receiving a wage garnishment notice doesn’t mean you’re out of options. Here’s what to do:

Contact a tax attorney: An attorney can help you assess the garnishment and discuss ways to challenge or reduce it.
Review the validity of the garnishment: Ensuring the garnishment is valid and accurate can help in case of errors.
Explore options for appeal or negotiation: An attorney can appeal or negotiate to minimize the garnishment’s impact.

A New Jersey wage garnishment attorney can help you with longer-term solutions, including:

Payment plans: A manageable payment plan can resolve your tax debt without garnishment.
Offer in Compromise: An Offer in Compromise allows you to settle your debt for less than the full amount.
Innocent Spouse Relief: If your spouse’s actions caused the debt, you might qualify for relief.

Working with a tax attorney can make a significant difference. A wage garnishment attorney has the experience and skills needed to understand IRS rules, advocate effectively, and personalize strategies based on your financial situation. With professional help, you have a better chance of resolving your tax issues and avoiding long-term financial strain.

Contact a New Jersey Wage Garnishment Lawyer Today

Wage garnishments are a serious matter, but you don’t have to face them alone. At Paladini Law, we understand the impact garnishments can have on your life, and we’re here to help you find a way forward. Contact us today for a consultation, and let’s work together to get you back on track. Call Paladini Law at 201-381-4472 or complete our online contact form to schedule your consultation.

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