We're almost to the end of September, which makes me wonder where summer went. The weather is changing, and pumpkin lattes are everywhere... and things are starting to pick up speed.
But we do know something that can stop anyone in their tracks on a fast day: when the IRS begins deducting a levy from your paycheck.
Dealing with the potential of IRS salary garnishment can be a frightening experience. Sure, it's humiliating. Can you, however, be fired as a result of it?
It's time to get things straightened out.
“Success is nothing more than a few simple disciplines, practiced every day.” – Jim Rohn
When the IRS imposes a salary levy on your company as a result of an IRS debt, and you haven't told your employer, it might create an embarrassing position.
However, by law, such communication cannot lead to your dismissal.
Fortunately, the "Consumer Credit Protection Act" prevents you from being fired as a result of a salary garnishment, including one by the Internal Revenue Service.
However, for your employer, the narrative does not end there. For retaliating against you because of your IRS problem, an employer can be fined up to $1,000 and even imprisoned for up to a year.
The US Department of Labor would be in charge of these issues. Internal Revenue Manual 5.11.5.2 is the legal citation, and 15 U.S.C. 1674 is the IRS citation.
However, using these court case numbers in a "conversation" with your boss can lead to an adversarial situation, which you probably don't want to be a part of.
So, if you're having a talk with your boss regarding pay garnishment and you're worried about being fired, here's what I recommend...
1) Hire Kohari & Gonzalez PLLC to represent you in front of the IRS. Often, the IRS imposed the wage levy because you weren't communicating with them effectively, and we'll take care of that (at the very least!) for you. What has most likely happened is that the IRS has given you notices in the mail asking payment, and you haven't responded in a satisfactory manner.
Of course, what the IRS really wants is to hear from you (or your representative, such as ourselves) and make correct payment arrangements. Levies are imposed when they haven't heard from you in a long time concerning payment.
2) If (or when) you cannot afford the levies being deducted from your salary, consider asking us to negotiate a financial hardship case. The IRS's "Fresh Start Program" is designed to assist those who can demonstrate that they are unable to repay the debt through wage garnishment or other ways. This will most certainly necessitate us filling out some financial information statements, and it will be beneficial to have experienced hands putting this together.
3) Inform your employer that your IRS debt is being handled properly and that you have retained the services of an experienced tax professional to represent you. This often alleviates any concerns your employer may have, allowing you to proceed without resorting to legal action under the Consumer Credit Protection Act.
The most important thing to remember is that an IRS wage garnishment is a problem that can be resolved. The IRS primarily seeks effective communication and a compliance plan that has been agreed upon.
And in this, as well as other situations, having a pro on your side is advantageous.
Give us a call today.
Warmly,
Sara F Gonzalez
(704) 599-3355
Kohari & Gonzalez PLLC