If the IRS or state tax authorities are taking money directly from your paycheck, a wage garnishment can quickly make it difficult to cover everyday expenses. Gabaie & Associates helps individuals and business owners in Frederick challenge tax collection actions, seek the release of wage levies and liens, and pursue a tax resolution that fits their financial circumstances.
Need help with a wage garnishment in Frederick? Call Gabaie & Associates at (410) 358-1500 or contact the firm online to discuss your situation.
What Is a Tax Wage Garnishment?
A tax wage garnishment is a collection action that requires an employer to withhold part of an employee’s earnings and send the money to a taxing authority. The rules depend on who is collecting the debt.
The IRS generally refers to this action as a wage levy. An IRS levy is a legal seizure of property to satisfy a tax debt, and wages can be subject to a continuing levy until the tax debt is paid, another payment arrangement is made, or the levy is released.
That is different from a typical wage garnishment used by a private creditor after a court judgment.
How Is a Tax Levy Different From a Regular Wage Garnishment?
The terms “garnishment,” “levy,” and “lien” are sometimes used interchangeably, but they have different legal meanings.
| Collection action |
Who may use it? |
How it generally works |
| IRS wage levy |
IRS |
The IRS directs an employer to withhold wages to satisfy federal tax debt. |
| State wage lien |
State tax authority |
A state tax agency can require wage withholding for qualifying unpaid tax debt. |
| Court-ordered wage garnishment |
Private creditors |
Usually follows a court judgment and a request for a writ of garnishment. |
| Tax lien |
IRS or state tax authority |
Creates a legal claim against property; it does not necessarily mean money is being taken from each paycheck. |
For ordinary judgment creditors, Maryland Courts generally limit wage garnishment to 25% of disposable wages per pay period, subject to additional protections for people earning minimum or near-minimum wages. A creditor also generally needs a judgment before beginning the wage-garnishment process.
Tax levies operate under different rules. That distinction matters when determining what can be withheld from your paycheck and what options may be available to stop the collection.
What Happens When the IRS Levies Your Wages?
An IRS wage levy does not usually happen without prior collection activity. Before levying, the IRS generally must assess the tax, send a notice and demand for payment, and send a Final Notice of Intent to Levy and Notice of Your Right to a Hearing at least 30 days before the levy.
Once a levy is in place, your employer receives instructions for calculating the amount that must be sent to the IRS. Some wages are exempt from the levy. The exempt amount is calculated using factors such as your filing status and dependents.
The levy can continue each pay period. It does not necessarily end simply because you are struggling to make ends meet.
That is why the notice you received matters. Depending on where you are in the collection process, you may have options to challenge the debt, request a hearing, establish an installment agreement, seek hardship status, or pursue another form of tax resolution.
Can a Wage Garnishment Be Stopped?
Often, yes — but the right solution depends on why the garnishment was issued and your financial situation.
Gabaie & Associates may evaluate options such as:
- Requesting a release of the levy: A levy may be released when the legal or financial circumstances support doing so.
- Showing economic hardship: The IRS may release a levy when it is creating an immediate economic hardship.
- Requesting an installment agreement: A payment arrangement may provide an alternative to continued wage seizure when the taxpayer can afford the required payments.
- Seeking Currently Not Collectible status: When a taxpayer cannot afford to pay after necessary living expenses, hardship status may temporarily stop certain collection actions.
- Pursuing an Offer in Compromise: In appropriate cases, the taxpayer may be able to settle qualifying tax debt for less than the full amount owed.
The IRS specifically recognizes hardship as a possible basis for releasing a levy. A release does not automatically erase the underlying tax debt, so resolving the collection action and resolving the tax liability are often related but separate issues.
Gabaie & Associates also handles related matters involving tax liens and levies, installment agreements, and Offer in Compromise cases.
What About a Maryland State Wage Lien?
The Comptroller has separate authority to collect unpaid state tax liabilities through a wage lien. According to the Comptroller, payroll deductions can begin after the wage-lien information is served, and the lien can continue until the balance is paid.
The amount withheld is not necessarily the same as an IRS levy or an ordinary creditor garnishment. The notice you receive should explain the calculation and applicable exemptions.
If you disagree with the underlying assessment, cannot afford the withholding, or believe the collection action is incorrect, it is important to review the tax account and the wage-lien notice rather than simply assuming the deduction must continue indefinitely.
What Should You Do If Your Paycheck Has Already Been Garnished?
Start by gathering the documents connected to the collection action. That usually includes:
- The most recent IRS or Comptroller notice.
- Any earlier notices concerning the tax balance.
- Recent pay stubs showing the amount being withheld.
- Filed tax returns for the years involved.
- Information about your household income and necessary expenses.
- Any existing payment agreements or correspondence with the taxing authority.
Do not ignore a levy or wage lien because the deductions have already started. A continuing collection action can affect every paycheck, and the available options may depend on the stage of the case.
A tax attorney can review the underlying liability, determine which agency is collecting, examine whether the collection action was properly issued, and identify a realistic path toward stopping or reducing the withholding.
How Can a Frederick Tax Attorney Help With Wage Garnishment?
When a paycheck is being garnished, the immediate concern is usually simple: How can I stop losing this much money every pay period?
The answer depends on the source of the garnishment, the amount owed, your ability to pay, and whether the underlying tax assessment is accurate. A tax attorney can review those factors and deal directly with the taxing authority to determine which resolution options may be available.
At Gabaie & Associates, the process may include:
- Reviewing IRS or Comptroller notices and your tax account
- Determining whether the wage levy or lien was properly issued
- Reviewing the underlying tax liability for errors or disputes
- Evaluating your income, expenses, assets, and other financial obligations
- Negotiating an installment agreement or other payment arrangement
- Requesting hardship or Currently Not Collectible status when appropriate
- Pursuing an Offer in Compromise when you meet the requirements
- Seeking the release or modification of a wage levy or lien
- Representing you in disputes or collection proceedings
The goal is not simply to make one paycheck look better. The larger issue is resolving the tax problem that caused the collection action in the first place.
What If You Disagree With the Tax Debt?
Sometimes the problem is not that you cannot pay. You may believe the tax authority has the wrong amount.
In these situations, negotiating a payment plan may not be the first step. The underlying liability should be reviewed before agreeing to pay a debt that may not be accurate.
Gabaie & Associates handles tax disputes, audits, appeals, unfiled returns, tax liens and levies, installment agreements, hardship matters, and other IRS and state tax issues.
Do You Need a Wage Garnishment Attorney in Frederick?
If you live or work in Frederick and are dealing with an IRS wage levy, state tax wage lien, or another tax collection action, Gabaie & Associates can review the situation and explain your options.
The firm has a Frederick office at 5100 Buckeystown Pike, Suite 250A, Frederick, MD 21704. Juda Gabaie represents taxpayers before federal and state tax authorities and is admitted to the U.S. Tax Court and Maryland Tax Court.
Are you in Frederick and having trouble with a wage garnishment, tax levy, or wage lien? Call Gabaie & Associates at (410) 358-1500 or contact the firm online to discuss your situation.
Frequently Asked Questions About Wage Garnishment in Frederick
Can you help me if I live or operate a business in Frederick?
Yes. Gabaie & Associates represents individuals, small business owners, and larger businesses with tax problems. The firm handles federal tax matters nationwide and represents taxpayers dealing with state tax agencies.
Can you stop a wage garnishment from the IRS?
In many cases, there are ways to seek the release or modification of an IRS wage levy. The appropriate approach depends on the tax debt, collection history, financial circumstances, and whether an alternative resolution is available. Gabaie & Associates specifically handles IRS tax levies and has secured releases of wage levies and garnishments for clients.
Can you help with a state tax wage lien?
Yes. A state tax wage lien is different from an ordinary creditor garnishment and has its own rules for withholding and exemptions. Gabaie & Associates represents taxpayers dealing with state tax collection matters, including liens and levies.
What if I cannot afford to pay my tax debt?
You may have several potential options, depending on your financial circumstances. These can include an installment agreement, hardship or Currently Not Collectible status, or an Offer in Compromise. Not every taxpayer qualifies for every option, so a review of your finances and tax account is important before choosing a resolution strategy.
What should I bring to a consultation about wage garnishment?
Bring the most recent wage levy or wage lien notice, previous tax notices, recent pay stubs, tax returns for the years involved, and information about your income, assets, and necessary living expenses. If you already have a payment agreement with the IRS or state tax authority, bring those documents as well.
Get Help With a Frederick Wage Garnishment
A wage garnishment does not necessarily mean you have to accept the current withholding indefinitely. The first step is understanding who issued the garnishment, how the amount was calculated, and what options are available based on your tax liability and financial circumstances.
If you are in Frederick and dealing with an IRS wage levy, state tax wage lien, or another tax collection problem, call Gabaie & Associates at (410) 358-1500 or contact the firm online.
