Receiving notice that the Internal Revenue Service may garnish your wages or levy your bank account can be extremely stressful. Many taxpayers feel overwhelmed when the IRS begins collection activity, especially when they are already experiencing financial difficulties.

At Z Tax & Accounting, we help individuals and business owners in Irving, Dallas, Fort Worth, Plano, Arlington, throughout the DFW Metroplex, and nationwide understand IRS collection notices and evaluate available resolution options related to wage garnishments, bank levies, and IRS collection activity.

What Is an IRS Wage Garnishment?

An IRS wage garnishment occurs when the IRS requires an employer to withhold a portion of a taxpayer’s wages in order to satisfy unpaid tax liabilities.

Unlike many other creditors, the IRS has broad collection authority and may garnish wages without first obtaining a court judgment.

Once a wage garnishment begins:

• Employers are legally required to comply

• A portion of wages may be sent directly to the IRS

• Garnishments may continue until the tax issue is resolved or alternative arrangements are made

What Is an IRS Bank Levy?

A bank levy occurs when the IRS instructs a financial institution to freeze and potentially remit funds from a taxpayer’s bank account to the IRS.

Bank levies may affect:

• Checking accounts

• Savings accounts

• Business bank accounts

• Certain investment accounts

Once a levy is issued, the bank generally holds the funds temporarily before releasing them to the IRS, which may create a limited window for taxpayers to respond.

Why the IRS Issues Garnishments & Levies

IRS collection actions often occur after:

• Multiple IRS notices have been issued

• Tax balances remain unpaid

• Tax returns remain unfiled

• Payment arrangements were not established

• Prior agreements defaulted

In many situations, taxpayers may still have options available even after receiving levy or garnishment notices.

IRS Collection Notices

Before certain collection actions occur, taxpayers may receive notices such as:

• Balance due notices

• Final Notice of Intent to Levy

• LT11 notices

• CP504 notices

• Collection warning letters

These notices often contain important deadlines and appeal rights.

Possible IRS Resolution Options

Depending on the taxpayer’s circumstances, possible resolution strategies may include:

• IRS installment agreements

• Payment plans

• Collection holds

• Currently Not Collectible status

• Penalty relief requests

• Filing missing tax returns

• Offer in Compromise evaluation

• Financial hardship review

Each situation is different and depends on factors such as:

• Amount owed

• Filing compliance

• Income

• Assets

• Financial hardship

• Business operations

Unfiled Tax Returns Often Need to Be Addressed

Many taxpayers facing garnishments or levies also have unfiled tax returns. The IRS often requires taxpayers to become compliant before approving certain collection alternatives.

Our office assists with:

• Prior-year tax returns

• Business tax filings

• Payroll tax filings

• IRS compliance matters

• Collection notice responses

Business Owners & Payroll Tax Issues

Business owners may face IRS collection actions involving:

• Payroll taxes

• Forms 941

• Business tax liabilities

• Trust fund recovery issues

• Payroll deposit problems

IRS collection activity involving business taxes should generally be addressed promptly to help minimize disruption to business operations.

IRS Representation Services

Ahsan Bashir is admitted to practice before the IRS and assists taxpayers with:

• IRS collection notices

• Wage garnishment matters

• Bank levy issues

• IRS payment plan requests

• Tax resolution strategies

• Compliance matters

• IRS correspondence

Our office works with taxpayers to review their IRS situation and determine available options based on the facts and circumstances of each case.

Serving DFW Metroplex & Nationwide

Our office proudly assists taxpayers throughout:

• Irving

• Dallas

• Fort Worth

• Plano

• Arlington

• Richardson

• Coppell

• Carrollton

• Euless

• Bedford

• Grapevine

• Grand Prairie

• Las Colinas

• Farmers Branch

We also provide secure virtual services for taxpayers nationwide.

Schedule a Consultation

If you received an IRS wage garnishment notice, bank levy notice, or other IRS collection letter, taking action quickly may help preserve additional resolution options.

Contact Z Tax & Accounting today to schedule a consultation regarding your IRS collection matter.

Related IRS Tax Resolution Services

• IRS Installment Agreements & Payment Plans

• Unfiled Tax Returns & Late Tax Filing Help

• IRS Notices & Tax Letter Help

• IRS Penalty Abatement & Penalty Relief

• Offer in Compromise (OIC) Help