Few things cause as much panic as receiving an IRS Final Notice of Intent to Levy. Once that notice is issued, the IRS can legally garnish your wages — taking part of every paycheck until your tax debt is paid in full.
But here’s the truth: you almost always have time and options to stop garnishment before it starts. Understanding the process — and acting quickly — is the key to protecting your income and regaining financial control.
📘 Official Resource: IRS Levy and Garnishment Overview
What Is IRS Wage Garnishment?
IRS wage garnishment (or “wage levy”) is the legal seizure of a portion of your wages to satisfy unpaid taxes. Unlike private creditors, the IRS doesn’t need a court order — once it sends proper notices, it can instruct your employer to withhold funds directly from your paycheck.
Once garnishment begins, your employer must comply. You’ll see a deduction labeled IRS Levy on every pay stub until the balance, penalties, and interest are paid in full.
📘 Reference: Understanding IRS Levies
How IRS Wage Garnishment Works?
Before taking your wages, the IRS must follow a strict legal process:
1️⃣ Tax Assessment: The IRS determines that you owe taxes.
2️⃣ Notice and Demand for Payment: The IRS sends a bill (often a CP14 or CP501 notice).
3️⃣ Final Notice of Intent to Levy: Sent at least 30 days before garnishment begins.
4️⃣ Right to a Collection Due Process (CDP) Hearing: You can appeal within 30 days.
5️⃣ Levy Enforcement: If no resolution is reached, the IRS notifies your employer to begin garnishment.
📘 Official Timeline: IRS Notice and Levy Process
💡 Key takeaway: You have 30 days after the Final Notice to stop the levy — that’s your critical window to act.
How Much of Your Paycheck the IRS Can Take?
The IRS doesn’t take a flat percentage; it uses an exemption table based on your filing status, pay frequency, and number of dependents. Anything above that exempt amount goes to the IRS until the debt is paid.
📘 IRS Reference: Publication 1494 – Table for Figuring Amount Exempt from Levy on Wages, Salary, and Other Income
Signs a Garnishment Is Coming
Watch for these warning letters:
- CP14 or CP501: Initial balance-due notice
- CP503 or CP504: Urgent payment reminder
- Letter 1058 or LT11: Final Notice of Intent to Levy and Notice of Your Right to a Hearing
Receiving Letter 1058/LT11 means the IRS can garnish your wages within 30 days if you don’t respond.
📘 Sample Notice Information: Understanding Your IRS Notice
Ways to Stop IRS Wage Garnishment Before It Starts
Once you get a levy notice, you have multiple legal tools to stop or delay enforcement.
✅ Pay the Balance or Set Up a Payment Plan
If you can pay in full or establish an Installment Agreement, the IRS will pause garnishment actions.
Even a partial agreement shows good-faith compliance.
📘 Start Here: Online Payment Agreement Application
✅ Request a Collection Due Process (CDP) Hearing
If you’ve received a Final Notice of Intent to Levy, you have 30 days to file a Form 12153 – Request for a Collection Due Process Hearing. Filing this form freezes collection activity — the IRS cannot garnish your wages while your appeal is pending.
📘 Form and Instructions: IRS Form 12153
This hearing gives you the chance to propose alternatives such as an Installment Agreement, Offer in Compromise, or hardship status.
✅ Apply for Currently Not Collectible (CNC) Status
If paying any amount would cause financial hardship, you may qualify for CNC (hardship) status.
Once approved, the IRS halts all collections — including garnishments.
You’ll need to disclose detailed financial information via Form 433-A or 433-F.
📘 Official Reference: IRS Currently Not Collectible Program
✅ Submit an Offer in Compromise (OIC)
An Offer in Compromise lets you settle your debt for less than you owe. Once the offer is filed, the IRS pauses active collection, including garnishment, during review.
📘 Program Information: IRS Offer in Compromise
Even if the offer isn’t accepted, submitting it can temporarily stop levies while the IRS evaluates your case.
✅ Request a Levy Release
If a levy has already started, you can still request a release by showing the garnishment causes immediate economic hardship (for example, inability to pay rent or utilities).
📘 Reference: IRS Levy Release Process
What Happens After a Garnishment Starts?
If you didn’t act in time and your wages are already being garnished:
- The IRS will continue to take payments until the debt, interest, and penalties are paid, or
- Until you negotiate another resolution (Installment Agreement, CNC, or OIC).
Your employer must comply with the IRS levy order; they have no discretion to stop it on their own.
To end an active garnishment quickly, contact the IRS directly or have your representative request a levy release while setting up an alternative resolution.
📘 Official Source: IRS – Release of Levy and Hardship Provisions
Protecting Yourself Before It Gets This Far
Preventing a garnishment is always easier than undoing one.
Here’s how to stay ahead:
- File all returns on time — even if you can’t pay in full.
- Respond immediately to any IRS notice.
- Enter a payment plan as soon as possible.
- Adjust your withholding or estimated payments to avoid new debt.
- Seek professional help before deadlines expire.
📘 IRS Guidance: Understanding Your IRS Notices and Letters
How a Tax Attorney Can Help?
A tax attorney can act fast to protect your wages by:
- Filing emergency appeals or CDP requests within the 30-day window
- Negotiating levy releases
- Setting up affordable payment plans
- Applying for hardship or settlement programs
- Preventing liens or future garnishments
Once an attorney files Form 2848 (Power of Attorney), the IRS must communicate directly with them — shielding you from stressful collection calls and deadlines.
📘 Reference: IRS Form 2848 – Power of Attorney
Need help with a similar issue? Contact our firm today for a consultation.
IRS wage garnishment doesn’t happen overnight — and it’s almost always preventable if you act quickly. From requesting a payment plan to filing a timely appeal, you have multiple legal tools to stop the process before your paycheck is touched.
If you’ve received a Final Notice or are worried your wages are at risk, contact Pelham PLLC immediately. Our experienced tax attorneys help clients stop garnishments, negotiate settlements, and protect their income from IRS collections.
FAQs
How soon can the IRS garnish my wages?
At least 30 days after sending the Final Notice of Intent to Levy (Letter 1058 or LT11). If you act within that window, you can stop it.
Can I stop wage garnishment once it starts?
Yes. You can request a levy release, file an appeal, or set up a payment plan to stop active garnishment.
What if the garnishment leaves me unable to pay bills?
You can request hardship relief or Currently Not Collectible status to pause collections.
