How to Stop IRS Wage Garnishment [2025]

If you’re wondering how to stop IRS wage garnishment and levies, know that you have options both before and after the IRS begins taking money directly from your paycheck or levies other assets. You can stop an IRS wage garnishment from occurring by immediately contacting the IRS and proposing a resolution such as a payment plan, an offer in compromise, or demonstrating financial hardship that qualifies you for Currently Not Collectible status. You may also have additional appeal options available both pre and post garnishment. Garnishments and levies represent the IRS’s enforcement action after other collection attempts have failed. The garnishment is designed to compel you to address your outstanding tax debt, not to permanently drain your income.

If you need professional assistance, consider working with a tax lawyer to guide you through the process.

How To Stop IRS Wage Garnishment Immediately

You can stop an IRS wage garnishment by immediately contacting the IRS at the number provided in your levy notice and requesting a collection alternative such as an installment agreement, an offer in compromise, or Currently Not Collectible status. The key is acting quickly—wage garnishments continue until the debt is paid in full or you establish an approved payment arrangement. In some cases, garnishment may be halted within a few days after contacting the IRS and arranging a resolution, but the exact timeframe depends on the specifics of your case and IRS processing speed. You may also want to consider utilizing the IRS Collection Appeal Program (CAP) under certain circumstances. 

Understanding Your Rights During The Collection Process

Before the IRS garnishes your wages, federal law provides specific protections that many taxpayers don’t realize are available to them. The IRS cannot simply start taking money from your paycheck without warning—you must receive a series of notices, including a Final Notice of Intent to Levy and Notice of Your Right to a Hearing, which gives you 30 days to respond and file an appeal, also known as a Collection Due Process hearing request, before the IRS contacts your employer and commences the garnishment or levy.

A Collection Due Process hearing must be filed within 30 days of receiving your Final Notice. The appeal forum affords you the opportunity to challenge the collection action or propose alternatives to resolve the account. You can also request an Equivalent Hearing if you miss the initial 30-day appeal period, though this carries fewer procedural protections. 

Furthermore, the IRS Collection Appeal Program provides valuable opportunities to challenge continued IRS garnishment or levy both before and after the fact. 

Understanding these rights gives you an advantage when negotiating with the IRS and helps ensure fair treatment throughout the collection process. These protections exist specifically to prevent the IRS from creating undue hardship while collecting outstanding tax obligations.

Immediate Actions When You Receive A Final Notice of Intent to Levy

Time becomes critical once you receive that Final Notice of Intent to Levy. You have exactly 30 days from the notice date to take action before the IRS may contact your employer and begin garnishing your wages or levy your bank accounts or other assets.

If you received a Final Notice of Intent to Levy, but missed the deadline to appeal, you should consider filing an Equivalent Hearing if you are within the prescribed time and contact the IRS directly to engage in communications as you may be exposed to imminent levy or garnishment. 

• If you have been levied or garnished, call the IRS immediately using the phone number listed on the notice—don’t delay taking action.
• If you can’t reach the IRS by phone, submit written requests for a collection alternative to the address, or fax number, on your notice, or where the instructions otherwise indicate.
• Gather the notice and details about your current financial situation to evaluate the appropriate collection alternative under your circumstances (e.g. payment plan, offer in compromise, currently not collectible).
• Compile financial documents necessary to support the collection alternative you are proposing, such as recent pay stubs, bank statements, monthly expense information, and asset details to support your payment proposal.
• Monitor other collection notices that may arrive, as the IRS often pursues multiple collection methods simultaneously.
• You may also consider utilizing the Collection Appeal Program as a powerful tool to challenge an ongoing garnishment. (see further below) 

Creating a paper trail showing your good faith effort to resolve the matter strengthens your position with the IRS. Having your financial information organized also helps you propose realistic payment arrangements or demonstrate legitimate financial hardship during your initial contact with IRS representatives.

Setting Up An Installment Agreement

An installment agreement represents one of the most straightforward ways to stop a wage garnishment. When you propose to pay your tax debt over time through monthly payments, the IRS typically releases the levy while your request is being processed and approved.

The IRS offers several types of installment agreements depending on how much you owe and your ability to pay. For assessed balances under $50,000, you may qualify for a streamlined installment agreement that requires minimal financial documentation. These agreements can often be set up over the phone or online, making them a practical option when you’re facing an imminent garnishment.

For larger balances or when you can’t afford the standard payment amount, you’ll need to submit detailed financial information on Form 433-A or Form 433-F. The IRS uses this information to calculate your ability to pay based on your income less allowable living expenses.

Making an immediate payment can demonstrate good faith and may help expedite the process, though it is not always required to initiate an installment agreement. Keep in mind that installment agreements come with setup fees and continued interest and penalties on the unpaid balance.

Qualifying For Currently Not Collectible Status

If you cannot afford to pay your tax debt without creating severe financial hardship, you may qualify for Currently Not Collectible (CNC) status. This designation temporarily suspends all collection activities, including wage garnishment, while you’re experiencing financial difficulty.

To qualify for CNC status, you must demonstrate that paying the tax debt would prevent you from meeting basic living expenses. The IRS has specific standards for allowable expenses, including housing, transportation, food, clothing, and medical costs. These standards vary by geographic location and family size.

The process requires submitting Form 433-A along with supporting documentation for all your income and expenses. You’ll need to provide supporting records to verify your financial situation. The IRS may request additional information during their review.

CNC status isn’t permanent—the IRS reviews your situation periodically and can resume collection activities if your financial circumstances improve. Additionally, interest and penalties continue to accrue on your unpaid tax debt during the CNC period. This option works best for taxpayers facing temporary financial difficulties who expect their situation to improve in the near future.

Submitting An Offer In Compromise

An Offer in Compromise (OIC) allows you to settle your tax debt for less than the full amount owed if you can demonstrate that paying the full balance would create financial hardship or if there’s doubt about your ability to pay the debt in full. Submitting an OIC typically stops collection activities, including wage garnishment, while the IRS evaluates your offer.

The IRS considers three grounds for accepting an offer: doubt as to collectibility, doubt as to liability, or effective tax administration. Most collection based offers fall under the doubt as to collectibility category.

The IRS calculates your reasonable collection potential based on your assets and future income capacity. Your offer must generally equal or exceed this calculated amount to be accepted. Preparing an OIC requires substantial documentation and careful calculation. You’ll need to complete Form 656 and Form 433-A (OIC), along with detailed financial statements and supporting documents.

The application also requires a non-refundable application fee and initial payment toward your proposed settlement amount. The OIC process can take several months to over a year to complete, and collection activities are generally suspended during review. However, if the IRS rejects your offer, collection actions can resume immediately, and you’ll lose the application fee and any payments made toward the offer.

Filing A Collection Due Process Hearing – Pre Garnishment or Levy

If you disagree with the IRS’s proposed collection actions, you can request a Collection Due Process hearing under certain circumstances prior to the levy. This independent review process temporarily suspends collection activities while an IRS Appeals Officer examines your case.

You must request a CDP hearing within 30 days of receiving your Final Notice of Intent to Levy using Form 12153. Even if you miss this deadline, you may still request an equivalent hearing, though you’ll have fewer procedural protections.

During the CDP hearing, you can challenge the appropriateness of the collection action or propose alternative collection methods. Disputing the amount owed is generally only allowed if you did not previously have an opportunity to contest the liability. The Appeals Officer will review your case independently from the collection function and issue a written determination. If you disagree with the determination, you can petition the U.S. Tax Court for review. CDP hearings provide valuable time to resolve your tax issues while stopping immediate collection pressure, particularly when you have legitimate disputes about the tax liability or when the IRS hasn’t followed proper collection procedures.

Utilizing IRS Collection Appeal Program (CAP) – Pre and Post Garnishment 

Unlike the Collection Due Process hearing request afforded to a taxpayer pre-levy or pre-garnishment, the IRS Collection Appeal Program may be a valuable tool for both pre and post-levy/garnishment appeals. The IRS prescribes specific instructions for filing a CAP depending on your circumstances. 

If the IRS has already seized property, you must appeal to the Collection manager within 10 business days after the Notice of Seizure is provided to you. The CAP is filed using IRS Form 9423, IRS Collection Appeal Request.

What Your Employer Should Expect During Garnishment

If you couldn’t stop the garnishment before it began, your employer will receive IRS Form 668-W along with Publication 1494, which explains their obligations. They must begin withholding money from your next paycheck and continue until they receive a release notice from the IRS.

The garnishment amount is based on your filing status and number of dependents, not a fixed percentage of your income. The IRS provides tables that show how much of your income is exempt from levy based on these factors. For example, a married taxpayer filing jointly with two dependents keeps more of their paycheck than a single taxpayer with no dependents.

Timeline For Releasing A Wage Garnishment

The timeline for releasing a wage garnishment depends on which resolution method you pursue and how quickly you act. If you call the IRS immediately and set up an installment agreement, the garnishment may be released within a few days, depending on IRS and employer processing times. Once the IRS agrees to release the garnishment, they’ll send Form 668-D to your employer. 

More complex arrangements take longer. Submitting detailed financial information for a non-streamlined installment agreement, Currently Not Collectible status, or an Offer in Compromise typically requires several weeks for processing, during which the garnishment may continue.

The key is to act quickly and minimize the damage.

When Professional Help Makes Sense

While you may be able to resolve wage garnishment issues yourself, certain situations benefit from professional representation.

A tax attorney, enrolled agent, or CPA with collection experience understands IRS procedures and can navigate complex cases more effectively than most taxpayers.

Consider professional help if you owe substantial amounts (generally over $25,000), face multiple collection actions simultaneously, or have complex financial situations involving business ownership, international assets, or multiple income sources. These situations require experience that professionals may handle more effectively.

Professional legal representation is valuable if you’re considering an Offer in Compromise or facing criminal tax issues. These matters require technical expertise and experience with IRS procedures.

When choosing representation, look for credentials and experience specific to tax collection matters. In many cases, professional fees may be less than the financial losses caused by ongoing wage garnishment, though this depends on the specifics of your situation.

Facing a Tax Problem? We’re Here to Help.

At Hughes Noff Tax Law, we know how overwhelming it can feel when the IRS or state tax authorities get involved. Whether you’re dealing with an IRS audit or tax dispute, international tax compliance, or tax debt resolution, we’re here to provide you relief and reduce your anxiety. Let us deal with the federal government—so you don’t have to.

We approach every client with empathy and provide the advocacy, direction, service, and resolution they deserve. We have over 25 years of combined experience resolving complex tax controversies and understand the unique and sensitive nature of these matters. As both attorneys and CPAs, we understand the law and the numbers. Our clients appreciate the clarity and peace of mind we help restore—read their stories here.

Contact us today or call 410-694-7758 to schedule your consultation.