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Will the IRS Garnish Wages During the Recession?
Some people define a recession as two consecutive quarters of negative growth in Gross Domestic Product (GDP), while others believe that unemployment numbers are more pressing. Whatever the definition, the United States continues to experience the worst economic crisis since the Great Depression. Often called the Great Recession in the press, there were six consecutive quarters of negative growth that began in December of 2007 and ended in June of 2009. However with some recent unemployment indicators rising again, there is even contention that the recession has indeed ended.
Unemployment, mortgage debt, and deficits all grew during the defined recession of 2007-2009. Economic uncertainty forced millions of Americans to cut on spending and live on less than they had previously. Of course, the recession did not stop creditors from coming to collect. In fact, it is often during times of economic hardship that creditors take off the proverbial gloves. And no collection agency on earth is as powerful or determined as the IRS.
While politicians have instructed the Internal Revenue Service to go for the jugular (i.e. collect as much money as they can from the American public), these same lawmakers have heaped additional responsibilities on the IRS and continued to call them out for aggressively pursuing delinquent taxpayers. The simple truth is that the governments main source of revenue is the American taxpayer.
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Theres a reason why most adults fear the IRS….in fact, there are several. Not only is the federal agency enormous with over 115,000 workers and an annual budget of nearly 12 billion dollars, but they also have powerful collection tools. For example, the IRS has the ability to place tax liens on the property of people who owe them back taxes. They can even seize your property (a tax levy) and sell it at public auction to recover a tax debt.
The most common form of forced collection is tax garnishment. This is when an IRS agent contacts your employer and orders him to send a portion of your weekly wages to the IRS. A tax levy that includes wage garnishment can be financially devastating for families and individuals.
Tax garnishment is a legal process the IRS uses to collect back taxes from millions of Americans who have refused to cooperate with the IRS. People generally cannot continue to pay a large portion of their wages over a protracted period of time. An IRS payment plan often makes more sense and gives the taxpayer a voice in the monthly payments. IRS payment plans give Americans who owe back taxes the option of making monthly installments based on the amount of disposable income the taxpayer earns every month. Sure, it may take a little longer for the IRS to collect the total tax debt, but at least you are repaying the debt on your terms according to a payment plan you can afford.
Your chances of securing an IRS payment plan increase exponentially with the help of a talented consultant. These experienced professionals will help you file all missing tax returns before they request an IRS payment plan. There is, of course, no guarantee that you will qualify for an IRS payment plan, but the odds are in your favor if you have a dedicated professional by your side.
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