For those dealing with IRS back tax debt, or other IRS related issues, seeing the light at the end of the tunnel may be difficult. You may feel that your situation is never ending and the future may seem bleak. We understand, but recovery is closer than you think.
To begin you must seek assistance from a reliable tax resolution professional. These professionals are comprised of tax attorneys and accountants that can provide you with relief quicker than you would be able to get on your own. In addition, they have the knowledge and experience to effectively deal with the IRS. Once a negotiation has been reached with the IRS, it is important that you follow each guideline and meet every due date. If you fail to do this, you are essentially taking a step backwards.
After your back tax debt is completely settled, recovery can officially begin. It is important to realize that this process may take a while, but the end result will be worth it. We cannot stress enough the importance of meeting with your tax attorney after the process has been completed. They can assist you in creating a long-term financial plan to help you stay on track. This plan will essentially be the road-map to a brighter financial future. Most importantly, mustn’t get discouraged by the current state of your financials. Overtime your credit will grow and your financial home will be back in order. Remember, it takes time!
If you are facing back tax debt, our personable, experienced tax attorneys would like to help. We have successfully helped thousands of taxpayers in need reach favorable settlements with the IRS. In addition, we assist in any way possible after the case has been closed. We are available 24/7 to provide you with a fixed, fair quote. Call the professionals at Michigan Pure Tax for a free consultation: (248) 329-1160 or visit us online!
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Potential Effects of a Wage Garnishment
Beside the weekend, pay day is one of the most coveted days to the working class and generally a cause for celebration. If you have been working for some time you tend to expect a certain amount inside that pristine white envelope, but imagine opening it and finding a less than satisfying number written on the check. Every pay day, many are faced with this unfortunate situation due to a wage garnishment. As bad as a lower income may seem, it is not the only negative effect of a wage garnishment.
Wage Garnishment Information
Wage garnishments vary depending on the creditor. If you owe back taxes your wages can be garnished automatically, without a court order or fair warning. Other creditors, such as credit card companies must obtain a court order and provide with you a warning. These warnings come in the form of two letters: a CP-297 (Intent to Levy) or a CP-90 (Final Notice). In order to receive a CP-90 you must fail to respond to the CP-297, and to have your wages garnished you must fail to take action against the CP-297. Fortunately, creditors typically cannot garnish more than 25% of your earnings (after mandatory government deductions). This holds true even if you are facing more than one garnishment.
Dismissal from your job
It is important to realize that although you are the one losing out on precious income, by law your employer is actually the one being garnished. Because your employer has to make the necessary deductions from your paychecks, liability actually falls on their shoulders. This means that if they fail to comply with the IRS order they could face serious consequences. Unfortunately, because of this liability, employers have the right to terminate you. While most do not, it is important to keep this in mind.
Lowered Credit Score
Wage garnishment orders are placed on public record, which means credit agencies can find out. If they do, your credit score will take a slight plummet. Though, it is important to remember that if you take action and satisfy your wage garnishment, your credit score will begin to improve.
Stress
Perhaps the most obvious and potentially damaging effect of a wage garnishment is the significant stress you may face. This is a completely understandable feeling to have during a time like this. To lower your anxiety it is important that you seek help from a tax specialist so you can quickly get back to normalcy.
If you are currently facing a wage garnishment or have received a CP-297 or CP-90, help is imperative. Our tenured tax attorneys have the ability and experience necessary to potentially stop wage garnishment within 24 hours of receiving proper documentation. Call us today for a free consultation (248) 329-1160