IRS Wage Garnishment Release

IRS wage garnishment (officially a continuous wage levy) is when the IRS orders your employer to withhold a portion of your wages and send them directly to the IRS until your tax debt is paid. The IRS determines the amount based on your filing status and standard deductions.

The IRS calculates the garnishment amount based on your filing status, standard deduction, and number of dependents. Generally, the IRS leaves you with enough to cover basic living expenses but takes a significant portion of disposable income.

The fastest way is to contact an enrolled agent who can file a Power of Attorney (Form 2848) with the IRS. Once the IRS recognizes representation, collection activities including garnishment are typically suspended while a resolution is negotiated.

Yes. Setting up an IRS installment agreement is one of the most common ways to stop wage garnishment. Once the agreement is in place, the IRS releases the levy.

If you are self-employed, the IRS cannot garnish wages from an employer, but they can levy your business accounts, accounts receivable, and other assets. Self-employed taxpayers should seek representation immediately upon receiving an IRS levy notice.

Yes. The IRS sends a Notice of Levy to your employer instructing them to withhold wages. Federal law prohibits employers from firing you because of a single IRS wage garnishment, but multiple garnishments could put your job at risk.