How to Stop a Federal Income Tax Garnishment?
- 1). Call the IRS and speak with a customer service representative. The representative can set up an installment agreement, which will allow you to make monthly payments on the taxes you owe. Once the installment agreement is in place, the garnishment will not be issued. If there is a garnishment already in place, it will be stayed. Keep in mind though that once a garnishment is actually issued, it's at the IRS's discretion as to whether or not to release the garnishment in favor of an installment agreement.
- 2). Ask to be assigned a taxpayer advocate if the garnishment has caused you a hardship. The taxpayer advocate will serve as a liaison between you and the IRS in an effort to find a solution which lessens your financial burden.
- 3). File an appeal with the IRS Office of Appeals if you feel that the garnishment was issued in error or if you were not allotted the 10 days to respond as outlined in your Intent to Levy Notice.
- 4). Complete Form 9423 to file a request for a Collection Appeals Program (CAP) hearing. This form is also available at the IRS website, local office or by calling 1-800-TAX-FORM. Make sure you check the box for the IRS action you disagree with. Once you have begun the appeal, the IRS will put a hold on the garnishment until the case is resolved. You generally have 30 days from the date of your intent to levy (garnish) notice to file an appeal with the Office of Appeals. If you met with an IRS collection manager, then your appeal must be dated within two days of the meeting or the IRS will reinstate collection enforcement.
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