Tax accountants: Can the IRS garnish ALL of one's earnings?

[Oeditpus Rex]

A friend's employer got a letter today that says they're apparently doing just that. All of it.

Even in W's Mer'ka, I don't see how this is possible. How can Our Fucking Government leave someone with NO INCOME??

[reyd reid reed]

1. Damn.

That's just wrong. It's got to be an error.

[bleedingheart]

2. I have heard of it...

especially in cases where the individual wasn't willing to negotiate...then the IRS gets mean.

I had to personally step in and help someone close to me with the IRS because the person was too timid to deal with the problem...hoping it would go away... I managed to get $700 in fines revoked by helping that person get to the office and for starting the dialog with the agents.

I also know of people who have had the majority of wages garnished for child support. One fellow had three ex wives and he had at least one kid with each woman.

[wildhorses]

3. my brother once got a paycheck of $00.01

yes!! you read that right ONE PENNY...after THEY decided how much he owed his ex and the 2 kids that he was keeping cos she couldn't but she still got the child support...

:wtf:


our whole system of doing things boggles my little pea brain :shrug:

[jarab]

4. Wage garnishment by IRS is usually 30-70% until

fully paid or negotiated.

...O...

[WhollyHeretic]

5. I had a friend who had his wages garnished down to $120 a week

Last year when I was in school I had my wages garnished to $123.25 every week (I was only working part-time) This was for child support even though I have my son half the time (at least).

[WindRavenX]

6. that's ridiculous

:wow:

[Lydia Leftcoast]

7. The moral of this story is:

If you owe the IRS, go in and negotiate a payment plan with them, and definitely before the deadline they give you.

I've had to do this a couple of times (the "underpayment of estimated tax" that we self-employed people sometimes get socked with), and in all but one case, the agents were nice about it. (The not nice one just scolded me about not planning better.)

[radwriter0555]

8. Yes, abiding by court judgements and by paying your tax bill in a timely manner

is the best way to avoid such problems...

[AllegroRondo]

9. I knew a guy who had 2 child support payments, each for 50% of his check

two ex wives, one child with each. And because each was in a different state, the state child support agencies would not talk to each other. Both agencies calculated that their case should get 50% of his check each month, and requested garnishment of his wages for it.

[Divameow77]

12. In reality that wouldn't happen

in most states, they will only take up to 25% for one child and if you happen to get another job making less money the father needs to file a motion to have it reduced and they usually do. A rule they usually follow as well is the most they will take is 50%, no matter how many kids the guy has. Guess it doesn't work out like that all the time.

Did you know that if man (or woman I guess too) loses their job and receives unemployment they will continue to take out the same amount for child support? I think that's crap, if the mother and child lived with him they would have to live off less money if dad loses his job, why shouldn't they if they don't live with him?

I am a rare single mother of two boys that doesn't receive child support from my oldest son's father AND still think's that father's often get screwed!

[AllegroRondo]

13. If both cases were from the same state, it wouldnt happen

but these two states didnt talk with each other, and didnt care to listen to the father when he brought it up. Both agencies seemed to take the stance of "well, you need to talk to the other state and get them to lower theirs".

He eventually got it fixed, but it took many many months of lawyers and court days. I beleive he still is fighting over the back payments they want.

[Divameow77]

14. That sucks

glad he got it worked out though

[philosophie_en_rose]

10. probably not, but he needs to seek real legal advice.

tax laws are sometimes obscure.

[Jack_DeLeon]

11. They could always....

go the old fashioned route of working under the table.

[zingaro]

15. No, it shouldn't happen.

About eight years ago my husband got a $0.00 check because the IRS took it all.

In subsequent phone conversations with the IRS we found out that the IRS is not authorized to take more than 50% of anybody's check and that the $0.00 thing was an error. They didn't reimburse us, though.

I would recommend that your friend find one of those attorneys who specialize in IRS repayment. They weren't around when we had our IRS fun but we sure wish they'd been available.

[jobycom]

16. It's an IRS scare tactic. he needs to talk to the IRS, or an attorney

I do payroll for my company, and we got a letter like that for one of our employees. The employee called them and worked out a pay schedule that was rough, but not nearly as rough as taking all his wages. The IRS is just trying to get him to work with them. He should, too, because once the IRS has ordered an employer to withhold wages, the employer has to, and any new employer will get the same court order. He needs to work out repayment with the IRS.

As for what the IRS can do... The letter we received didn't actually order us to take ALL of the check, it gave a set amount, IIRC, which was larger than his check, but then said the employer could adjust the amount to leave a certain very small amount for his living expenses. Your friend is probably exagerating or hasn't read the letter completely. But they can take most of it, until he works something out. Remember, tax evasion is a crime, so his alternative could be jail. It's not the same as blowing off a credit card company.