Wages being Garnished


S

SuFlorida

I owe IRS $35,000. I am guilty, I am not making excuses.

I worked for a company 23 years and the company sold to
another company, then that company sold to another company.
We were basically "Enroned." Stock price went from over $50
to $3. Hundreds/thousands of us lost our jobs. In
desperation I cashed in my retirement money to live on until
I could find a job. I fell into depression, desperation,
lost absolutely everything I owned (home, car, furniture,
personal belongings, everything).

Fast forward four years. I am trying to repair my life,
been working at a new job over a year now, had to start over
at the bottom, barely surving financially.

Two weeks ago my boss advised me that he had received a
notice of garnishment. He pretty much told me I have to
clear it up or I am out the door.

A week after I received the message from my boss I received
a certified letter from IRS notifying me that they are
garnishing my wages, as I own no property for them to seize.
It has a notice that I am allowed to appeal. I don't know
enough about the IRS to know if I should do this or not. Is
it a trap?

Today I received my first paycheck with the garnishment. I
am allowed to keep $150 per week. How can a human live on
$150 a week??? This won't even cover my expenses to go to
work (car, insuranse, gas, etc.)

Is there anything I can do? I can't afford an attorney. I
admit that I owe the money, I just can't pay it right now.
I need more time to get back on my feet.

Anyone have any suggestions? Right now I feel so desperate
I can't even think straight.
 
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P

Paul A Thomas

SuFlorida said:
Two weeks ago my boss advised me that he had received a
notice of garnishment. He pretty much told me I have to
clear it up or I am out the door.
I think, if you ask your boss to check, he'd be violating
the law by doing so. *Says so on the notice he received.*
A week after I received the message from my boss I received
a certified letter from IRS notifying me that they are
garnishing my wages, as I own no property for them to seize.
It has a notice that I am allowed to appeal. I don't know
enough about the IRS to know if I should do this or not. Is
it a trap?

Today I received my first paycheck with the garnishment. I
am allowed to keep $150 per week. How can a human live on
$150 a week??? This won't even cover my expenses to go to
work (car, insuranse, gas, etc.)

Is there anything I can do? I can't afford an attorney. I
admit that I owe the money, I just can't pay it right now.
I need more time to get back on my feet.

Anyone have any suggestions?
Either make an Installment Agreement that both you and the
IRS can live with, OR, make an Offer-In-Compromise to settle
the debt.
 
S

Stuart Bronstein

SuFlorida said:
Fast forward four years. I am trying to repair my life,
been working at a new job over a year now, had to start over
at the bottom, barely surving financially.

Two weeks ago my boss advised me that he had received a
notice of garnishment. He pretty much told me I have to
clear it up or I am out the door.
Talk to a local lawyer. I don't know Florida law, but in
some places it is illegal for someone to fire you just
because your wages are garnished.

Stu
 
H

Helen P. OPlanick EA

I owe IRS $35,000. I am guilty, I am not making excuses.
I worked for a company 23 years and the company sold to
another company, then that company sold to another company.
We were basically "Enroned." Stock price went from over $50
to $3. Hundreds/thousands of us lost our jobs. In
desperation I cashed in my retirement money to live on until
I could find a job. I fell into depression, desperation,
lost absolutely everything I owned (home, car, furniture,
personal belongings, everything).

Fast forward four years. I am trying to repair my life,
been working at a new job over a year now, had to start over
at the bottom, barely surving financially.

Two weeks ago my boss advised me that he had received a
notice of garnishment. He pretty much told me I have to
clear it up or I am out the door.

A week after I received the message from my boss I received
a certified letter from IRS notifying me that they are
garnishing my wages, as I own no property for them to seize.
It has a notice that I am allowed to appeal. I don't know
enough about the IRS to know if I should do this or not. Is
it a trap?

Today I received my first paycheck with the garnishment. I
am allowed to keep $150 per week. How can a human live on
$150 a week??? This won't even cover my expenses to go to
work (car, insuranse, gas, etc.)

Is there anything I can do? I can't afford an attorney. I
admit that I owe the money, I just can't pay it right now.
I need more time to get back on my feet.

Anyone have any suggestions? Right now I feel so desperate
I can't even think straight.
You ignored them. They needed to do something to get your
attention. Guess what? This worked. Call them and set up
an installment agreement and they will release your
garnishment.

Helen, EA in PA
I DID IT!
50 miles, 3 days, 1 cause - Multiple Sclerosis Challenge Walk for the Cure
October 1 to October 3, 2004
 
P

Phil Marti

A week after I received the message from my boss I received
a certified letter from IRS notifying me that they are
garnishing my wages, as I own no property for them to seize.
It has a notice that I am allowed to appeal. I don't know
enough about the IRS to know if I should do this or not. Is
it a trap?
For the sake of argument let's say it is. Can you be any
worse off than you are? No, it's not a trap.
Today I received my first paycheck with the garnishment. I
am allowed to keep $150 per week. How can a human live on
$150 a week??? This won't even cover my expenses to go to
work (car, insuranse, gas, etc.)

Is there anything I can do? I can't afford an attorney. I
admit that I owe the money, I just can't pay it right now.
I need more time to get back on my feet.
What you can do is stop ignoring the IRS. Call the number
that's on the levy and talk to them. They'll get some
financial information from you and, if you have the ability
to make payments, enter into a reasonable payment plan,
which will at least get the levy released and leave you
money to live on. Oddly enough, they'd have done this
without the levy had you given them the chance.

Without knowing more about your finances I have no idea
whether you'd be a good candidate for an offer in
compromise. I don't recommend doing this yourself, so until
you can afford to hire a representative, just keep it in the
back of your mind.

You're not helpless and shouldn't be hopeless, but your post
sounds like you're driving yourself to distraction over
this. You need to snap out of that before you do real
damage to yourself.

Phil Marti
Clarksburg, MD
 
D

David Woods, EA, ChFC, CLU

SuFlorida said:
I owe IRS $35,000. I am guilty, I am not making excuses.

I worked for a company 23 years and the company sold to
another company, then that company sold to another company.
We were basically "Enroned." Stock price went from over $50
to $3. Hundreds/thousands of us lost our jobs. In
desperation I cashed in my retirement money to live on until
I could find a job. I fell into depression, desperation,
lost absolutely everything I owned (home, car, furniture,
personal belongings, everything).

Fast forward four years. I am trying to repair my life,
been working at a new job over a year now, had to start over
at the bottom, barely surving financially.

Two weeks ago my boss advised me that he had received a
notice of garnishment. He pretty much told me I have to
clear it up or I am out the door.

A week after I received the message from my boss I received
a certified letter from IRS notifying me that they are
garnishing my wages, as I own no property for them to seize.
It has a notice that I am allowed to appeal. I don't know
enough about the IRS to know if I should do this or not. Is
it a trap?

Today I received my first paycheck with the garnishment. I
am allowed to keep $150 per week. How can a human live on
$150 a week??? This won't even cover my expenses to go to
work (car, insuranse, gas, etc.)

Is there anything I can do? I can't afford an attorney. I
admit that I owe the money, I just can't pay it right now.
I need more time to get back on my feet.

Anyone have any suggestions? Right now I feel so desperate
I can't even think straight.
Sorry to hear it but you must have completely ignored the
situation for quite some time for it to come to this. The
situation should be resolvable but the fact is you're going
to have to find a way to pay someone to represent you.

I'd also be concerned about working for an employer who
threatens to terminate you for something outside the scope
of your employment. A garnishment isn't much different than
any other form of withholding so I don't know what his
problem is.

Possibilities based on facts not totally known:

1) Ch. 7 bankruptcy
2) Offer in compromise
3) make sure the original tax is correct to begin with.
 
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B

Barney Byrd

SuFlorida said:
Is there anything I can do? I can't afford an attorney.
I admit that I owe the money, I just can't pay it right
now. I need more time to get back on my feet.

Anyone have any suggestions? Right now I feel so
desperate I can't even think straight.
Contact a Low Income Taxpayer Clinic (LITC) in your area and
ask if they are willing to represent you. LITCs don't have
the staff to take in every one who asks for their help.
It's left to their discretion to choose to represent you or
not. For more information about the LITC program, click on
the link below:

http://www.irs.gov/advocate/article/0,,id=106991,00.html

Barney Byrd
 

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