Wage garnishment occurs when an employer has to withhold the earnings of an individual in order to account for the payment of a debt in accordance with a court order or other legal or equitable procedure from the IRS or a state tax collection agency. In order to stop wage garnishments, many individuals will need to take steps towards clearing their debts. There are several different tax penalties that stem from IRS tax debt, and, in many cases, the only way to avoid them or stop wage garnishments is by making sure that debts are cleared.
Luckily, there are several ways for taxpayers to stop wage garnishments. For some, the best way to stop wage garnishments is an offer in compromise settlement. In order to qualify, individuals will have to be able to prove either doubt as to liability, doubt as to collectibility, or effective tax administration. Doubt as to collectibility, or DATC, occurs when a taxpayer will never have the ability to completely pay their tax bill. So proving DATC might be a worthwhile venture for someone who needs back tax relief but is so backed up that they will never be able to overcome their debts completely.
Effective Tax Administration, or ETA, offer requires that a taxpayer is not eligible for an offer in compromise as the result of either a theory of Doubt as to Liability, also known as DATL, or Doubt as to Collectibility. If a taxpayer files an offer based on a theory of DATL, they will need to prove that they have not had another opportunity to dispute a tax liability. In many cases, tax debt settlements provide a great opportunity for individuals who want to clear their debts and stop wage garnishment. By being able to stop wage garnishment, individuals will be able to regain financial stability.
Because many of the rules and regulations associated with trying to stop wage garnishment can be complex and overwhelming to anyone lacks experience finding tax relief help. If that is the case, finding and working with an experienced tax professional can be a good idea. Because of their skills and experience, tax attorneys will be able to not only clarify complex terms and policies, but also provide useful advice to anyone struggling to stop wage garnishments. As a result, they are a valuable resource for anybody who needs a bit of help clearing their tax debts. Great references here.