Can the IRS garnish my wages for unpaid taxes?
Yes, the IRS can garnish your wages for unpaid taxes. The IRS has the authority to use several collection tools to ensure taxpayers pay their taxes, including wage garnishment. The IRS may obtain a wage garnishment order from a court, or they may issue a "notice of levy" directly to your employer to garnish your wages.
However, there are limitations on how much the IRS can garnish from your wages. The maximum amount the IRS can legally garnish from your wages is 25% of your disposable income, or the amount by which your disposable income exceeds 30 times the federal minimum wage, whichever is less. Disposable income is defined as the amount of your income left after mandatory deductions, such as taxes and social security.
If you are facing wage garnishment due to unpaid taxes, there are several options available to you. You can negotiate with the IRS to set up a payment plan or request an offer in compromise (a settlement agreement). You can also request a hearing to contest the wage garnishment or file an appeal if you disagree with the IRS's decision.
It is highly recommended that you consult with a licensed attorney or tax professional to explore all available options and determine the best course of action for your specific situation.