Stop IRS Wage Garnishment

An IRS wage garnishment (technically a continuous wage levy) takes a portion of every paycheck and sends it directly to the IRS. Unlike a one-time bank levy, a wage levy keeps going until you release it — eating into your paycheck every two weeks. Most clients are shocked by how little is exempted: the IRS protects only a small "exempt amount" based on filing status and dependents.

How an IRS wage levy actually works

The IRS serves your employer with Form 668-W. The form tells your employer:

• How much to send to the IRS each pay period
• What "exempt amount" to leave with you (based on Publication 1494)
• That the levy continues until released — your employer can't stop on their own

The exempt amount is small. A single filer with no dependents typically keeps around $300–$500 per paycheck (varies by pay frequency). Everything above that goes to the IRS.

What the IRS notices look like

Before a wage levy, the IRS sends:

• CP504 — Final Notice (intent to levy state refund and other property)
• LT11 / Letter 1058 — Final Notice of Intent to Levy and Notice of Your Right to a Hearing

You have 30 days from the LT11/Letter 1058 to request a Collection Due Process (CDP) hearing. The CDP request stops the levy while the appeal is pending. Missing that 30-day window doesn't kill your options, but it does make them harder.

How to stop an existing wage garnishment

Set up an Installment Agreement

Most common path. Once the IRS accepts an IA, the wage levy is released — usually within a few business days. The IA payment is generally lower than the levy amount.

Qualify for Currently Not Collectible (CNC)

If paying anything would create financial hardship, CNC releases the levy. Learn more about CNC.

File an Offer in Compromise

Once the IRS deems your OIC processable, levies are typically suspended. Note: levies that are about to release exempt funds (your minimum paycheck) generally proceed even with an OIC pending.

Show economic hardship

If the levy itself is creating immediate hardship — you can't pay rent, you can't buy food, you can't afford medical care — the IRS can release the levy under "economic hardship" rules.

What to do today if you're being garnished

Pull a pay stub. Pull your most recent IRS notice. Get on a free 15-minute call with a licensed tax pro. The pro will pull your IRS transcript while you're on the call, identify the fastest release path, and start the conversation with the IRS that day. Most wage levies that are negotiated immediately can be released within 5–10 business days.