Quick overview

Wage garnishment (an IRS wage levy) requires your employer to withhold part of your paycheck to satisfy federal tax debt. If garnishment is active, act immediately: time-sensitive options can stop collection or buy breathing room while you negotiate a longer-term resolution.

Immediate steps to take (first 72 hours)

  1. Locate the IRS notice(s). The IRS must send a Final Notice — “Notice of Intent to Levy and Notice of Your Right to a Hearing” — before garnishing wages. You usually have 30 days to request a Collection Due Process (CDP) hearing after that notice; ask for one right away if still within the deadline (IRS: Collection Due Process).
  2. Call the IRS Collection office number on the notice. Ask whether a levy has been issued to your employer and whether a levy release is possible while you negotiate. Get a case/notice number and the representative’s name.
  3. Gather documentation: recent paystubs, a month of checking/savings statements, bills, and proof of essential living expenses. These are required if you ask for hardship, an installment agreement, CNC status, or an Offer in Compromise.

Emergency options the IRS commonly grants

  • Installment Agreement (IA)

  • What it does: The IRS often releases a wage levy if you enter a formal installment agreement and make agreed payments. Apply online for many plans or call Collections (see IRS payment plans) (IRS: Payment Plans / Installment Agreements).

  • When it helps: Best when you can afford a monthly payment that covers current tax accruals plus a portion of the past-due balance. Streamlined IAs exist for taxpayers under certain balances (see our article on IRS Fresh Start Installment Programs: Eligibility and Application).

  • Currently Not Collectible (CNC) / Hardship

  • What it does: If the IRS determines paying would create an economic hardship, it may place your account in CNC status and suspend levies temporarily. You must submit a collection information statement (Form 433‑F or 433‑A/B) to document income, expenses, and assets (see If You Can’t Pay: Applying for Currently Not Collectible (CNC) Status).

  • When it helps: Useful when payments would leave you unable to cover necessary living expenses. CNC is a temporary reprieve; interest and penalties may still accrue.

  • Offer in Compromise (OIC)

  • What it does: An OIC (Form 656) settles your tax debt for less than the full amount when collection of the full amount is unlikely. While the OIC is under IRS consideration, collections may pause in certain circumstances—file early and follow IRS instructions (IRS: Offer in Compromise).

  • When it helps: Appropriate when your reasonable collection potential is less than the tax owed.

  • Request a Levy Release

  • What it does: The IRS can release a levy if it was issued in error, if it’s causing immediate economic hardship, or if you enter a qualifying agreement. Ask explicitly for a levy release and the reasons you qualify.

  • Practical note: Even after an IRS agent agrees to release a levy, an employer may not stop withholding until it receives the official release; get written confirmation and provide it to payroll.

  • Collection Due Process (CDP) or Appeals

  • What it does: Filing a timely CDP request (generally within 30 days of the Final Notice) stops the levy while the hearing is scheduled. You can raise collection alternatives during the hearing (IRS: Collection Due Process).

  • Bankruptcy and Other Limited Options

  • What it does: In some bankruptcies, certain federal tax debts are dischargeable or bankruptcy may temporarily halt collections. Bankruptcy is complex and not a guaranteed stop to wage garnishment—consult a bankruptcy attorney.

What I do for clients (practice insight)

In my work with people facing garnishments, the fastest wins come from two steps: (1) filing a realistic budget using Form 433‑F to prove hardship and (2) negotiating a direct-debit installment agreement or CNC status. I always tell clients to get a written levy-release and follow up with payroll; verbal promises don’t stop employer withholding.

Documentation and forms you’ll likely need

  • Form 433‑F (Collection Information Statement) or Form 433‑A/B for individuals/businesses
  • Form 9465 (Request for Installment Agreement) or apply through the IRS Online Payment Agreement tool (see IRS Payment Plans / Installment Agreements)
  • Form 656 (Offer in Compromise) and supporting financials for OICs
  • Keep copies of IRS notices, paystubs, bank statements, and bills

Practical timeline and expectations

  • CDP hearing: Generally request within 30 days of the Final Notice to stop an impending levy.
  • Installment agreement/case review: Can take days to a few weeks; a direct-debit plan and first payment often prompt a levy release faster.
  • CNC requests: Review time varies; prepare for periodic reviews and to update financial info.
  • Offer in Compromise: Processing can take months; don’t assume OIC instantly stops collection unless IRS confirms a suspension.

What to avoid

  • Don’t ignore notices—silence usually accelerates collection.
  • Don’t assume an informal payment promise stops the levy; always get written confirmation.
  • Avoid predatory “settlement” services promising guaranteed rapid releases; verify credentials or use Low Income Taxpayer Clinics/Taxpayer Advocate Service if you can’t afford representation.

After the levy is released

  • Provide the levy-release notice to your employer’s payroll department and request a correction for any withheld wages still held.
  • Confirm with the IRS that the release is recorded on your account; document agent names/dates and confirmation numbers.

Where to get help and reputable resources

FinHelp articles that expand on these options

Final notes and disclaimer

This article explains common emergency options to halt federal wage garnishment and is current as of 2025. It is educational and not a substitute for personalized tax advice. For complex situations or to represent you before the IRS, consult a qualified tax attorney, enrolled agent, CPA, or your local Low Income Taxpayer Clinic (LITC).