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If you’ve ever opened a letter from the IRS and felt your heart drop, you’re not alone. Tax debt can feel overwhelming — and unlike most creditors, the IRS has serious power to collect what you owe. Wage garnishment, bank levies, and tax liens are real threats. But they’re not inevitable.
At Sigal Law Firm, we help individuals and families find relief from tax debt through smart legal strategies — including bankruptcy. Here’s what you need to know if you’re worried about losing your paycheck to the IRS.
Yes — the IRS Can Garnish Your Wages
Unlike credit card companies or medical bill collectors, the IRS doesn’t need to sue you first. If you ignore notices, they can begin garnishing your paycheck, seizing your bank account, or placing a lien on your property. And their reach is broad — they can even intercept your tax refunds or Social Security benefits.
What Triggers IRS Collection Actions?
The IRS typically starts with warning letters. If those go unanswered, they may issue a Final Notice of Intent to Levy. Once that happens, you have limited time to respond before enforcement begins.
Triggers may include:
- Unpaid income taxes
- Unfiled tax returns
- Ignored IRS correspondence
How Bankruptcy Can Help With Tax Debt
Bankruptcy can sometimes eliminate or restructure tax debt, depending on the type, age, and circumstances. There are two main options:
- Chapter 7: May discharge certain older income tax debts if specific conditions are met
- Chapter 13: Creates a structured 3–5 year repayment plan, often halting penalties and interest
Filing bankruptcy also creates an automatic stay — an immediate legal stop to all collection actions, including IRS garnishments and levies.
Not All Tax Debt Is Created Equal
Payroll taxes, recent tax debts, and fraud-related liabilities usually aren’t dischargeable. But many people carry older tax debt that can be resolved — and they don’t even realize it.
The key is understanding which tax debt qualifies and how to time your filing to maximize protection.
Don’t Wait for the IRS to Strike
The longer you wait, the fewer options you may have. Once the IRS starts garnishing your wages, it can be harder — though not impossible — to undo. That’s why early legal advice matters.
Let’s talk about your options, whether it’s through bankruptcy or another tax resolution strategy.
Contact Sigal Law Firm Today
If you’re facing IRS pressure or dealing with unmanageable tax debt, we can help. Schedule a free consultation today to understand your rights — and how to protect your income, your assets, and your peace of mind.
