IRS Wage Garnishment
Under U.S. federal tax law, a garnishment by the Internal Revenue Service (IRS) is a form of administrative levy. In the case of an IRS levy, no court order is required.
Only a few requirements must be met before the IRS starts a wage garnishment:
- The IRS must have assessed the tax and must have sent a written Notice and Demand for Payment
- The taxpayer must have neglected or refused to pay the tax within the time prescribed in the notice; and
- The IRS must have sent a Final Notice of Intent to Levy and Notice of Your Right to A Hearing (levy notice) at least 30 days before the levy
The IRS may serve the Final Notice in person, may leave the notice at the taxpayers home or usual place of business, or may send it to the last known address by certified or registered mail.
The IRS is required to send the Final Notice to the last address known to the agency. The taxpayer does not need to actually receive the notice for the notice to be effective.
Many taxpayers never actually receive the final notice. Those taxpayers may not realize they are in danger of receiving a levy until their wages are actually garnished.