There are laws to protect taxpayers from the confiscation of their assets. In addition, there are laws that have specific provisions regarding the collection of taxes by the IRS. These laws are important because tax collection is the main source of revenue for the federal government. The amount that can be seized by the IRS varies and depends on the outstanding tax owed, as well as the person’s total assets. However, in most cases, there is a fixed cap of 25% of salary. Since the calculation is based on a percentage, the amount seized could be more if the person’s salary is higher and less if the salary is less. Trying to reach some kind of equitable settlement with the IRS is the best way to minimize tax complications and lessen the burden of refunding the outstanding amount. If the taxpayer is unsuccessful in the negotiation, the last available option would be to file bankruptcy immediately. Therefore, filing for bankruptcy is a sure way to stop wage garnishment.

If an individual files for bankruptcy, all debt-related collection activities from creditors stop. The legal community often uses bankruptcy as a weapon to save its clients from the problems associated with a legal verdict. Additionally, wage garnishment laws state that while any employee’s wages are withheld, the employer cannot fire them. The law clearly establishes the protection afforded to the labor of delinquent taxpayers in these situations. If the employer terminates the taxpayer’s employment, he is subject to a $1,000 penalty. Wage garnishment laws are strict and specific, and a delinquent taxpayer is advised to cooperate with the IRS if such an unfortunate incident occurs. Since everything is done with a clear and specific consequence, failure to follow any federal guidelines could cause more legal trouble, which is the last thing you want.

If it is possible to satisfy outstanding debts, this should be done immediately. Once the debt is paid, a person does not have to worry about being sued by the creditor and having to fight back and stop the wage garnishment. Your creditor should not be appraised or ignored. The taxpayer should try to explain his situation clearly and frankly to the creditor, citing specific reasons for his inability to make payments on time, as well as proposing a solution. Initially opting for a lawsuit is not recommended. If a person is in sound enough financial condition to pay off his debt within the allotted 10-day time period from the date of the judgment, he can stop the wage garnishment immediately. Another way to use wage garnishment laws is to appeal for one’s basic needs, such as food, shelter, and medical care. Filing bankruptcy to stop the IRS wage garnishment is always an option, but it should be a last resort.