Frequently Asked Questions

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We often get asked, how do I stop IRS wage garnishments, and what is the maximum amount the IRS can garnish from your paycheck? Generally, the IRS will take 25 to 50% of your disposable income.

They usually don't go back more than the last six years. The IRS tries to audit tax returns as soon as possible after they are filed.

Processing times vary, but you can expect the IRS to take at least six months to decide whether to accept or reject your Offer in Compromise (OIC). The process can take much longer if you have to dispute the examiner's findings or appeal their decision.

The IRS may freeze your bank account if it believes you are not making attempts to pay off the debt or if it believes you are attempting to commit tax fraud. This means that any money in your bank account will be unavailable while the freeze is in effect, making it difficult to pay bills or access important funds

The Fresh Start programs give more taxpayers the ability to use streamlined installment agreements to catch up on back taxes and also more time to pay. The new threshold for requesting an installment agreement has been raised from $25,000 to $50,000.

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If you don't file taxes for a deceased person, the IRS can take legal action by placing a federal lien against the Estate. This essentially means you must pay the federal taxes before closing any other debts or accounts. If not, the IRS can demand the taxes be paid by the legal representative of the deceased.

No, the IRS will NEVER contact you via phone.

You can claim a boyfriend or girlfriend as a dependent on your federal income taxes if that person meets the IRS definition of a "qualifying relative.

Yes, the IRS can take your paycheck. It's called a wage levy/garnishment. But – if the IRS is going to do this, it won't be a surprise. The IRS can only take your paycheck if you have an overdue tax balance and the IRS has sent you a series of notices asking you to pay.

The Short Answer: Yes. The IRS probably already knows about many of your financial accounts, and the IRS can get information on how much is there. But, in reality, the IRS rarely digs deeper into your bank and financial accounts unless you're being audited or the IRS is collecting back taxes from you.