When it comes to tax debt, ignoring IRS notices won’t make them disappear. In fact, it can make things much worse. One of the most serious consequences of unpaid federal taxes is wage garnishment, where the IRS takes money directly from your paycheck. Recognizing the early warning signs can help you act before it’s too late.
1. You’ve Received Multiple IRS Notices
The IRS doesn’t garnish wages without warning. You’ll usually receive a series of letters, including a Notice and Demand for Payment. If you’ve ignored these, the next letter—often titled “Final Notice of Intent to Levy”—means the IRS is preparing to act.
2. The Final Notice of Intent to Levy Has Arrived
This notice is the IRS’s formal warning that garnishment is imminent. Once sent, you have 30 days to respond or arrange payment before the IRS can start taking money from your paycheck. If you’ve reached this stage, time is critical.
3. You Owe More Than $10,000 in Back Taxes
While wage garnishment can occur for smaller debts, balances exceeding $10,000 often trigger closer scrutiny and faster enforcement action. Large debts increase the likelihood you’ll face levies on both wages and bank accounts.
4. Your Employer Has Been Contacted by the IRS
If your employer receives a notice from the IRS, that means the agency is ready to garnish your wages. At this point, the process is already in motion, and your employer is legally obligated to comply. This is one of the last stages before money starts coming out of your check.
5. You Haven’t Set Up a Payment Plan or Made Contact
Ignoring the problem is the fastest route to garnishment. The IRS prefers to work out a solution—such as an installment agreement, hardship status, or offer in compromise—but if you remain unresponsive, garnishment becomes their only option.
Take Control Before the IRS Does
If you’re seeing any of these warning signs, don’t wait until your next paycheck is smaller than expected. At England Financial Services, we help individuals and businesses resolve their IRS issues quickly and effectively. England Financial Services can negotiate with the IRS, stop wage garnishments, and develop a plan that fits your financial situation.
Call England Financial Services today to see how we can may be able help protect your income and regain peace of mind.
