Many taxpayers are surprised to learn how powerful IRS collection authority can be. If tax debt goes unresolved, the IRS can legally garnish wages or levy bank accounts to collect what is owed.
How IRS Collection Actions Begin
IRS collection does not happen overnight. Typically, the process includes:
- Multiple written notices
- Requests for payment
- Warnings of enforced collection
Ignoring these notices increases the likelihood of serious action.
Wage Garnishment Explained
Wage garnishment allows the IRS to take a portion of your paycheck directly from your employer. Unlike other creditors, the IRS does not need a court order to do this.
Once garnishment begins:
- A significant portion of income may be withheld
- Garnishment continues until the debt is resolved
- Financial hardship can escalate quickly
Bank Levies Explained
A bank levy allows the IRS to seize funds directly from your bank account. Once initiated, banks typically freeze funds for a short period before sending them to the IRS.
This can:
- Disrupt bill payments
- Overdraw accounts
- Create cascading financial issues
How to Stop or Prevent Garnishment
Options may include:
- Setting up a payment plan
- Requesting penalty relief
- Resolving the balance through negotiation
Early action provides more options and prevents severe enforcement.
Why Professional Help Matters
A tax professional can communicate with the IRS on your behalf and help stop or prevent garnishment through proper resolution strategies.