Has I.R.S Put a Tax Levy On Your Wages? What Do You Do?

Office Building at 2600 So. Gessner, Houston Texas

Most Texans are not used to having their wages garnished! The Texas Constitution prohibits it. But I.R.S. wage levies “trump” the Texas Constitution, so the government can take your wages, at least most of them, if you fail to pay Uncle Sam.

What to do? You must come into “compliance” as the IRS likes to say, by filing any delinquent tax returns. Then you can try to convince them that you are uncollectible, or enter into a repayment plan, which they call an Installment Agreement.

But if you have other debt problems besides the I.R.S., it can be quicker and more expedient to file a Chapter 7 or Chapter 13 bankruptcy. When a bankruptcy is filed, an “automatic stay” or federal court order goes into effect, which immediately prohibits creditors from trying to collect their debts, at least without first getting permission from the Bankruptcy Court.

And the I.R.S. must immediately release any wage levies, so that you begin receiving your full check again. In fact, if your employer has not yet sent the funds to the IRS, it is often possible to have the wage levy released before any money is deducted, but you must act quickly.

Call my office at 713-772-8037 to make an appointment with me to discuss your situation, to see if it makes sense for you. Your first visit with me is free, and takes about an hour.