Can the IRS Levy Wages to Cover Debt in Texas?

In the state of Texas, creditors may not garnish individual wages unless they meet set criteria.  Unfortunately for taxpayers, this law does not apply to the Internal Revenue Service. 

According to current Texas wage garnishment laws, otherwise known as wage attachments, those who owe unpaid taxes can have their wages levied without requiring a prior court order. The amount garnished varies on a case-by-case basis and depends on a number of factors, including how many dependents an individual has, as well as the deduction rate.

Protecting Your Assets 

Since the IRS stepped up efforts to resolve collections and prosecutions of those who fail to file returns or owe back taxes, it has become increasingly common for the IRS to levy bank accounts, wages or other assets, in order to resolve an individual’s tax debt. 

It’s important to note that this is not restricted to income or employment tax. Those with unpaid state or local taxes can also see their assets levied in order to reconcile outstanding tax disputes. 

For many people, the sudden garnishing of wages or other assets can pose significant challenges, especially in cases where income or outstanding debt are a substantial factor. Additionally, those who receive wages from a source outside of their home state run the risk of having wages levied in either state, which unfortunately comes down to a creditor’s judgment.

No matter what situation you find yourself in, one thing is clear – you need your wages in order to provide for yourself and your family. It’s important to remember that resolving your IRS tax dispute does not need to cost you everything – there is another way.

Resolving Your Tax Issues 

If you or someone you know has accrued back taxes and has experienced the garnishing of wages, bank accounts or other financial assets, it is in your best interest to contact a tax resolution attorney. 

In Tyler, Texas and the surrounding communities, the tax attorneys at the Scammahorn Law Firm, P.C. assist clients dealing with a broad range of tax issues, including back taxes and wage garnishment. Our skilled attorneys will work with you to examine your tax debt situation and achieve a resolution that protects your interests now, and in the future, with the minimum possible penalty.

The time to act is now – do not allow your assets to be levied any further without taking professional advice. To schedule an initial consultation to assess your case, we invite you to call our attorneys at the Scammahorn Law Firm P.C. at (903) 595-1000.