Wage Garnishment Release
State
Not only can the State wipe your bank accounts, they can also go after your wages. If you are a W-2 employee or even a 1099 contractor, the State Tax Authorities can garnish your income without a formal court order. The larger entities, such as the Franchise Tax Board in California or the Department of Taxation and Finance in New York, can garnish up to 25% of your paycheck. If the a state taxing authority is garnishing your wages, please schedule a consultation or call us ASAP.
Questions?
Do all states release wage garnishments?
No; many states will leave a garnishment in place and refuse to alter or adjust the 25% mandate. We have had success in states that seemed extremely unwilling to modify or adjust an existing garnishment, but it can be an uphill battle. Please contact us if you are experiencing a hardship as a result of a state tax levy.
If I am okay with the state garnishing my wages, do I need to set up a payment plan?
It really depends on the state. There are some states where you are considered in default or delinquent when a levy is in place, and other states that treat all continuous garnishments no differently than payment plans. If you would like help converting your state garnishment into an official payment plan, please reach out today.
If I submit an application for a payment plan or an Offer in Compromise (OIC), does that automatically stop the garnishment?
No, many states will leave an active garnishment in place while they evaluate your application for an alternative resolution. The IRS is one of the few taxing authorities that will release a garnishment the moment an alternative proposal is made. However, even though it is not a requirement that states halt collections, we have had success getting relief for our clients while their alternative proposal is being evaluated.