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STOPPING A WAGE GARNISHMENT aka LEVY

In order to collect taxes the IRS and many state tax agencies will use a wage levy aka garnishment. A warning letter will be sent to you prior to the levy being served that tells you the tax agency can serve a levy on banks, employers, retirement plans, etc. If you do not respond with a phone call to arrange a payment plan, some other settlement approach or evidence that you do not have enough money to pay the tax collector, your employer will be required to deduct an amount from future paychecks that will be applied to your old tax debt. The IRS takes about 80% of your take home pay, the state can take up to 25%.

What should you do? Decide if you can handle something like the following. A wage levy can be released or modified when the IRS approves a monthly installment agreement, a hardship suspension or receives an Offer in Compromise. This means you need to calculate and write down your average monthly income versus your average monthly allowable necessary living expenses. The IRS allows reasonable necessary living expenses, but how do you know what expenses the IRS allows and does not allow? They allow food, clothing, rent/house payment, utilities, car expenses, car payments, medical insurance, medical expenses, life insurance, etc., if the amounts are "reasonable and necessary". After you have paid all of your reasonable monthly living expenses, how much would you have left over to pay the IRS on a monthly basis? Or, are you in a financial hardship that warrants a 12 month suspension of all collection action? And lastly you need to present one of the above to the IRS as a proposed resolution.

But, before you make that call to the IRS, ask yourself, "do I have the ability to negotiate with a tax collector that does collections for a living?" If you ask someone who has been doing this kind of work for 25 years, the answer is definitely no. Maybe your best course of action is to hire an experienced representative to resolve your tax problems.

However, if you have ignored the notices and the garnishment (wage levy) goes into effect, we may be able to reverse or reduce the levy. Call Demetriou, Montano & Associates to help you work out something with the tax collector. We are experienced at knowing what to say and what NOT to say in these situations.

If you or your representative do not correctly analyze your financial "ability to pay" and/or do not contact the IRS expeditiously the IRS may decide to use other enforcement actions such as a levy on your bank account or a lien on your property. We can help you stop all of these collection actions and put in place a solution that best fits your circumstances.

If your wages are being garnished call us today - 888-987-1040



"When all seems lost... when it looks as if there is no way out... I insist that my friends and clients go to Demetriou, Montano & Associates. Their name ought to be "Houdini & Associates."

THEODORE COHEN, ESQ.
Attorney at Law
"For over twenty-two years your specialized tax expertise has greatly assisted me. Your unique training and background exceeds the knowledge of attorneys and CPAs..."

THOMAS A. NITTI, ESQ.
Certified Specialist, Taxation Law
"I have used the services of Demetriou, Montano Associates a number of times. In my opinion, they bring a very high level of expertise and ability to bear on unique..."

BURKE WILLSEY, ESQ.
Tax Attorney, Asst. Commissioner IRS, Ret.
" I have referred dozens of clients to your firm. In every case, my clients have been thoroughly satisfied not only with your outstanding tax expertise, but also with your sensitivity..."

HENRY M. TOLES, ESQ.
Bankruptcy Attorney
"I have referred many clients to you with the confidence that they will receive the best representation available and then be returned to me for ongoing accounting and tax preparation services."

JAMES C. MAHONEY, CPA
"If I have a client with a major IRS collection problem, I look to Demetriou, Montano & Associates for assistance."

EDWARD CAPOZZI, CPA
IRS Revenue Agent, Ret.
"I typically do not make recommendations, but Demetriou, Montano & Associates are Number One on my recommendation list."

LARRY OLNEY
Tax Preparer


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Demetriou, Montano & Associates is located in West Los Angeles California near the border of Santa Monica. We are licensed to help with tax problem resolution and intervention with IRS troubles throughout the entire United States, with an emphasis on the Southern California communities in and around Los Angeles, Orange County, Long Beach, Santa Monica, Irvine, Newport Beach, Santa Ana, Anaheim, Costa Mesa, Pasadena, Encino, Sherman Oaks, Riverside and San Bernadino.

The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.