Paying tax is a legal requirement for individuals, businesses and corporations that are reporting an income. Failure to pay taxes can lead to difficult consequences for the taxpayer. The taxation authorities of the particular country can take voluntary and involuntary enforcement action for collecting the taxes due to them. One of the methods used by them for satisfying the debts related to federal and state taxes is wage garnishing. The employer of the taxpayer is ordered by the taxation authority to deduct a portion of their paycheck for satisfying their taxation debt. However, this can create hardship for the taxpayer and increase their financial burden.
It is possible for individuals to make a tax objection against wage garnishment they consider the debt invalid or they do not agree with the amount of debt that has been specified. Objection can also be made in circumstances when this act will result in extreme hardship for the taxpayer and their family as a whole. A judge has to hear the objection made against wage garnishment. The notification letter of this garnishment should provide complete details about the background and current circumstances and people have to take several steps, depending on the type of garnishment and objection being made.
The first step that should be taken is that the taxpayer should start addressing their letter to the rightful and proper authorities. The wage garnishment notice will provide the information about the authority in question. If this information is not provided, the organization imposing the garnishment can be contacted for inquiring about the right authorities. The objection made against the wage garnishment should be explained in detail. The letter should comprise of specific facts and figures and should have proper evidence instead of pleas of understanding. Apart from that, taxpayers can also provide additional information for backing their case.
This includes providing their account number and other pertinent information that can be useful in identifying the case of the individual. If possible, individuals should also make an offer of settling their debt with reasonable payments. However, they should not how much and when they will be able to pay. All the necessary documentation and forms that are attached with the wage garnishment letter should be filled. In the case that tax objection is made against the amount of validity of the debt, payment documentation and statements should be attached such as canceled checks.
If financial hardship is the reason for the objection being made, attaching the recent documentation of expenses such as car payments, utilities, medical bills, mortgage, credit card payments and insurance payments and also the recent paycheck stubs is recommended. Businesses should consider filing for bankruptcy in the case where tax debts are overwhelming and garnishment is making the situation worse. This can provide tax refunds to individuals. However, some tax debts cannot be discharged by bankruptcy either. In this scenario, the only option available is to make a tax objection and provide proper proof of hardship. Different standards are used for determining hardships so people should have enough proof to back their claim.