If you have a tax debt with the IRS, the IRS can establish a wage garnishment to recover the money you owe. If this happens, the IRS will automatically keep a portion of your paycheck each pay period to pay your debt. In some cases, the IRS may garnish up to 70% of your income. One of the most common forms of tax is wage garnishment, which is when the IRS keeps a portion of your paycheck to pay the tax debt.
Another common tax is the bank account tax, in which the IRS takes funds from your bank account to pay your tax bill. The IRS can garnish your wages, including commissions and bonuses. If you are self-employed or are an independent contractor, the IRS cannot garnish an employer's wages. However, the agency can garnish rental income, accounts receivable (money your customers owe you), and funds from your bank account and other assets.
The IRS will automatically release a tax lien when the taxpayer pays their tax debt. Once the IRS issues an exemption, it may take a few days before your employer accepts it and no longer garnishes your salary. Unfortunately, paying the full amount of back taxes isn't an option for many taxpayers who owe more to the IRS than they have in the bank.