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Wage garnishment for back taxes
A wage levy can take a large share of each paycheck until it's released. Acting quickly, and getting your returns filed, matters.
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- ✓ Federal and California (FTB) issues
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No obligation. A tax resolution professional may follow up to discuss your situation.
How tax garnishment works
- IRS: before levying wages, the IRS generally must send a final notice of intent to levy and notice of your right to a hearing, usually at least 30 days in advance. A wage levy is continuous until released.
- IRS exempt amount: part of your pay is exempt based on your filing status and dependents; the rest can be taken.
- California FTB: the FTB can issue an Earnings Withholding Order for Taxes (EWOT) to your employer, typically withholding a portion of wages.
- Bank levies are separate and can freeze funds in your account.
Options that may release or prevent a levy
- Filing all required returns (often required before other options are available)
- Paying in full, or setting up an installment agreement
- Showing economic hardship (Currently Not Collectible status)
- An Offer in Compromise, if you qualify
- Requesting a Collection Due Process hearing within the deadline on your notice
Whether a levy can be released, and how fast, depends on your facts. A tax professional can contact the IRS or FTB on your behalf with a power of attorney.
Common questions
Can the IRS take my whole paycheck?
Not all of it; a portion is exempt based on your filing status and dependents. The remainder can be levied until the levy is released.
Are you a tax firm?
No. File Back Taxes is a free referral service. We pass your request to an independent tax resolution firm or tax professional, who decides whether and how they can help.
Is it too late to file old returns?
Generally, no. You can file a past-due return at any time, and filing is usually the first step toward resolving the problem. Refunds, however, are generally only available if you file within three years of the original due date.
How many years do I need to file?
It depends on your situation. The IRS generally focuses on the last six years for filing compliance, but it can ask for more. A tax professional can review your IRS transcripts and advise you.