Can tax relief stop wage garnishment?

CBS News

27-05-2025

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If your wages are being garnished by the IRS (or if you're at risk of it), there are a few strategies you can use to deal with the issue.
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Having your wages garnished over an unpaid debt is one of the more stressful financial consequences you can face. One day, you're making ends meet between your paycheck and your regular bills, and the next, a chunk of your income has been taken to pay a delinquent debt, with the money gone before you ever see it. This type of financial penalty can have a big impact on your financial health, as it can be tough — or in some cases, impossible — to find room in your budget for all of your expenses when a portion of your pay has been taken to pay off an outstanding debt.
And while wage garnishment may seem like a penalty that's reserved for the most serious debt-related issues, it's a real threat for anyone who has fallen behind on their taxes. After all, the Internal Revenue Service (IRS) has the option to use wage garnishment (and many other tools) to try and collect what's owed. But unlike debt collectors, the IRS doesn't need a court order to start garnishing your wages. Once they've sent you several collection notices and no resolution has been made, they can legally instruct your employer to withhold a portion of your paycheck.
For those who are already struggling to make ends meet, this kind of penalty can make it feel nearly impossible to keep up with their expenses. That's part of why the idea of tax relief sparks so much interest. But when you're facing something as aggressive as wage garnishment, you may wonder if tax relief can help get things back on track. So can tax relief stop wage garnishment, or do you need to consider other options?
Chat with a tax relief expert about your options today.
Can tax relief stop wage garnishment?
Yes, tax relief can stop IRS wage garnishment, as these strategies are designed to help taxpayers resolve their unpaid debt and halt enforced collections like garnishment. However, you'll need to act quickly and choose the right strategy.
Here are some of the most effective tax relief methods to use when you're facing wage garnishment:
An installment agreement : In many cases, setting up a payment plan
: In many cases, An Offer in Compromise : If you're approved for an Offer in Compromise, this option allows you to settle your tax debt for less than you owe
: If you're approved for an Offer in Compromise, this option allows you to Currently Not Collectible status : If you can prove financial hardship, the IRS may temporarily halt collections, including wage garnishment. While the debt still exists, you won't face enforcement while protected under this status.
: If you can prove financial hardship, the IRS may temporarily halt collections, including wage garnishment. While the debt still exists, you won't face enforcement while protected under this status. Innocent spouse relief: If your tax debt resulted from your spouse's (or ex-spouse's) actions, you might be eligible for this form of relief. Approval could eliminate your responsibility for the debt and stop related garnishments.
These relief options typically require detailed financial disclosures and can take time to process. That's why many people turn to tax relief professionals, like enrolled agents or tax attorneys, who can negotiate with the IRS on their behalf and request a garnishment release while a resolution is underway.
Find out how to get rid of your delinquent IRS tax debt now.
What to do if the IRS is garnishing your wages now
If your wages are already being garnished by the IRS, don't wait to deal with the issue. Immediate action is your best shot at stopping or reducing the levy.
To start, verify how much you owe and review the notices the IRS has sent. If you haven't received a Final Notice of Intent to Levy and your right to a hearing, the IRS may have skipped a required step, something a tax professional can help you identify and challenge.
From there, you should get in touch with the IRS or work with a tax relief specialist to begin negotiating a resolution. In many cases, you can request a release of garnishment by proposing an installment agreement or proving hardship. While the IRS doesn't have to agree right away, showing good faith effort often helps your case.
If you're truly in financial distress, be ready to document everything: your income, expenses and assets. The IRS wants proof that garnishment is creating undue hardship before they'll consider lifting it. It's also worth noting that the IRS typically won't garnish wages while a request for an Offer in Compromise or Currently Not Collectible status is pending. So even applying for relief could buy you time while a longer-term solution is evaluated.
The bottom line
Yes, tax relief can stop wage garnishment, but the IRS won't back off unless you take specific steps to resolve the debt or prove that garnishment is causing severe financial harm. That said, the IRS does generally want to help taxpayers who are proactive and cooperative find a solution, especially those who show a genuine intent to pay.
So, if your paycheck is being garnished by the IRS or you're on the verge of it, don't ignore the problem. The sooner you act, the more options you'll have, and the better your chances of keeping your income intact. Whether it's setting up a payment plan, filing for hardship status or exploring other forms of relief, taking that first step now could make a significant difference in how long it takes to get your financial life back on track.