Levy = Garnishment
An IRS levy takes precedence over a child support order ONLY if the tax levy was entered before the child support order. See https://fasttaxhelp.org/tax-liens-and-levies/ for more information about levies.
When the IRS levies your wages, part of your wages will be sent to the IRS each pay period. This will continue until other arrangements to pay your overdue (back) taxes are made. See https://fasttaxhelp.org/irs-payment-plans-for-the-self-employed/ for information on payment plans.
While under a federal tax levy part of your wages may be exempt from the levy and the exempt amount will still be paid to you. The exempt amount is determined by your standard deduction and the number of exemptions you are allowed https://www.irs.gov/pub/irs-pdf/p1494.pdf. Your employer will receive a letter from the Internal Revenue Service explaining how to determine the amount exempt from the levy. You will be required to complete a statement about your exemptions and your filing status and return it within THREE DAYS. If not returned within three days, your exempt amount is set as married filing separately with one exemption. If you have other income sources they other income sources may be levied at 100%. Bonuses can be levied at 100%.
Child Support
If you pay child support directly to your ex-spouse your employer should list the child support in your exempt amount. If the amount was not included you will need to call the IRS phone number listed on the levy notice. Consequently, the IRS will release the amount of court-ordered child support if it was ordered prior to the levy received by your employer. If the support is allowed, the same child cannot be claimed as an exemption for determining the exempt amount.
The easiest way to deal with a tax levy is to speak to an Enrolled Agent and have your levy lifted. Our Enrolled Agents Work in all 50 States and the territories of the United States. We are a small company. You will not get lost in the crowd and will work directly with an Enrolled Agent not a case manager. Our Enrolled Agents have almost 30 years of experience negotiating tax debt with the Internal Revenue Service and have an A+ rating with the Better Business Bureau. We take pride in our work and actually take the time to listen to our client’s concerns. Our blueprint for a long lasting successful business is offering straightforward, reasonable solutions, honest answers, quick results and no hidden fees. To contact the author info@fasttaxhelp.org. For more information call 561-293-3135 or visit our website https://fasttaxhelp.org/fast-tax-help-form/.
