wage garnishment

[Janitor Bob]

Client filed had not filed her 2006 taxes and, not surprisingly, IRS sent letter informing her that if she did not file, she would be assessed the IRS estimate of $25,000 due. I filed her 2006 taxes and she owed a much smaller $4,000. While IRS was processing her return (which I was informed could take many months), her employer received a notice of garnishment...for the full $25,000. Is there any way to get this garnishment stopped since it is not the correct amount? Client called IRS, but they basically said "tough". She is calling attorney to advise...but have any of you had experience in getting IRS to stop or modify a wage garnishment?

[TAXBILLY]

I would file a POA and Form 911:

http://www.irs.gov/pub/irs-pdf/f911.pdf

JB:

Where you been? We missed you!

taxbilly

[jainen]

>>they basically said "tough"<<

I can't say what might happen with the return. Maybe nothing, ever. You are dealing with COLLECTIONS now, so why not approach it that way? Arrange a reasonable payment plan that will stop the levy, then file an Offer in Compromise based on doubt as to liability.

[Tax Prep by Deb]

Client filed had not filed her 2006 taxes and, not surprisingly, IRS sent letter informing her that if she did not file, she would be assessed the IRS estimate of $25,000 due. I filed her 2006 taxes and she owed a much smaller $4,000. While IRS was processing her return (which I was informed could take many months), her employer received a notice of garnishment...for the full $25,000. Is there any way to get this garnishment stopped since it is not the correct amount? Client called IRS, but they basically said "tough". She is calling attorney to advise...but have any of you had experience in getting IRS to stop or modify a wage garnishment?

I have had good success in getting the garnishment either adjusted to an affordable amount, or in one clients case all that was required was that we faxed over the completed return.

When I was doing payroll for a company they were served a garnishment notice for one of their employees that basically left him with little to live on, I suggested that he immediately contact them and arrange for a payment plan, for which he did, and they faxed me a release the same day.

So I guess it's just whoever you happen to get a hold of and how willing they are to work with you. But I have had nothing but good success in dealing with issues like this.

Deb!

[mlinder42]

I would call collections tell them return has been filed.They probably let you fax it to them and you can do an installment agreement over the phone.You must have a signed 2848. I have removed several wage garnishments this way.

[taxguy057]

Just went over this in cpe training with the IRS today. Just like previously stated by taxbilly... download form 911 and fax to your local tax advocacy office. From what was told to me in class today they will promptly get to it and get the process started to relinquish the levy. Good Luck!!

[Lion EA]

Good to see your smiling face again. How's life treating you?