You can avoid a garnishment by filing returns on time and paying your taxes in due time. If you need more time to apply, you can request an extension. If you can't pay what you owe, you should pay as much as you can and work with the IRS to resolve the remaining balance. Contact the IRS right away to resolve and discuss options on forgiving your tax debt liability and request a tax exemption.
The IRS can also release a tax if it determines that the tax is causing immediate economic hardship. If the IRS rejects your request for tax release, you can appeal this decision. You can appeal before or after the IRS imposes a tax on your salary, bank account, or other assets. Once the garnishment proceeds have been sent to the IRS, you can file a claim to have it returned to you.
You can also appeal the IRS denial of your request for the return of the encumbered assets. For a full explanation of your appeal rights, see Publication 1660, Collection Appeal Rights (PDF). If the tax is for a debt that can be paid off (student loans, child support, and taxes don't qualify), bankruptcy may be your next option. Once the debts are removed from your credit history, the garnishment will be removed.
A garnishment is a legal seizure of your property. It requires a third party to give us your money to pay your tax guarantee. We may give a fee to a bank that holds your money or to a person or entity that owes you money.
