IRS Wage Garnishment: What It Is and How to Stop It
The IRS can garnish your paycheck without a court order. Here's how it works, how much they can take, and the steps to get it released — including what works in Maryland, DC, and Virginia.
An IRS wage levy — commonly called wage garnishment — lets the federal government take a portion of every paycheck before you ever receive it. Unlike most creditors, the IRS doesn't need a court order. Once they've issued proper notices and 30 days have passed without a response, they can issue a levy directly to your employer.
If you're reading this because it's already happening, there are steps you can take to stop it. If you're reading this because you received IRS notices and want to understand what's coming, now is the time to act.
How IRS Wage Garnishment Works
The IRS sends a series of notices before garnishing wages — the final one is a Notice of Intent to Levy, also called a CP90 or LT11. After you receive this notice, you have 30 days to respond or request a Collection Due Process (CDP) hearing. If you don't, the IRS can issue a wage levy to your employer.
Once the levy is issued:
- Your employer is legally required to comply
- The levy is continuous — it applies to every paycheck until released
- The IRS uses a formula to calculate the exempt amount (based on your filing status and dependents) — everything above that amount is sent to the IRS
The exempt amount is often shockingly low. Many people find 40–70% of their take-home pay seized, leaving them unable to pay rent or basic living expenses.
How Much Can the IRS Take?
The IRS calculates the amount you keep using Publication 1494, which provides a table based on your filing status and number of exemptions. The rest goes to the IRS.
For example: a single filer with no dependents claiming the standard exemption keeps a relatively small amount per paycheck. A married filer with two dependents keeps more — but the IRS typically still takes a substantial portion.
The levy doesn't account for your actual expenses — mortgage, car payment, groceries, childcare. It uses a flat formula. This is intentional: the IRS wants the levy to be painful enough that you engage.
How to Stop It
A wage levy is released when one of the following happens:
1. You establish a resolution with the IRS. An installment agreement, Offer in Compromise, or Currently Not Collectible status all qualify. Once a formal arrangement is in place, the IRS lifts the levy.
2. You demonstrate financial hardship. If the levy is causing your income to fall below basic living expenses, you can request a levy release based on hardship — even without a full resolution in place. You'll need to document your income and expenses.
3. The underlying liability is resolved. If the debt is paid or abated, the levy is released.
4. The Collection Statute Expiration Date passes. The IRS has 10 years from assessment to collect. If that date passes, the levy must be released. This is rarely a near-term option, but it factors into longer-term strategy.
How Fast Can It Be Released?
With professional representation, a wage garnishment can often be stopped within days. The process is:
- File a Power of Attorney (Form 2848) — this puts your representative in direct contact with the IRS and takes you out of the direct communication chain
- Contact the IRS and request a levy release in exchange for a resolution in progress
- Provide documentation of the proposed resolution (installment agreement, hardship, OIC)
- The IRS faxes a levy release (Form 668-D) to your employer
Most employers process the release within one or two pay cycles. You won't recover wages already seized — the levy release is prospective — but it stops further seizure immediately.
Maryland and Virginia State Wage Garnishments
Maryland and Virginia can both garnish wages for state tax debt separately from any IRS garnishment. Maryland limits state wage garnishment to 25% of disposable income — but if you're also under an IRS levy, the combined effect can be devastating.
Maryland state garnishments go through the court system, unlike IRS levies, which means the timeline is different and the process for release is different. We handle both simultaneously so you're not resolving one while the other continues.
What About Changing Jobs?
The levy follows you. You're required to notify the IRS of a new employer, and the IRS will issue a new levy. Some people change jobs repeatedly trying to stay ahead of wage garnishment — this doesn't work and often creates additional compliance problems. The only permanent fix is resolving the underlying debt.
The Bottom Line
A wage levy is the IRS's way of forcing engagement. Most levy releases happen relatively quickly once you have professional representation and a resolution in progress. The mistake most people make is waiting — every paycheck that passes under a levy is money you don't get back.
DMV Tax Resolution stops IRS wage garnishments for clients in Maryland, DC, and Virginia. Call us or schedule a free consultation.