IRS Wage Garnishment in Dallas: How to Stop It

Nothing gets a taxpayer's attention like finding out the IRS has contacted their employer. An IRS wage levy — commonly called wage garnishment — allows the federal government to take a significant portion of your paycheck every pay period until the debt is paid or the levy is released. In Dallas, where many residents have mortgages, car payments, and other fixed obligations, this can create an immediate financial crisis.

How Much Can the IRS Take?

Unlike a regular creditor who might be limited by state wage garnishment caps, the IRS is exempt from those limits. The IRS can take everything above a small exempt amount based on your filing status and number of dependents. For many taxpayers, this means 60-70% of their take-home pay is subject to levy. The levy continues indefinitely — every pay period — until the liability is resolved or the levy is released.

The Notice Process

The IRS does not garnish wages without warning. You should have received a series of notices, culminating in a CP504 (Notice of Intent to Levy) and then a Final Notice of Intent to Levy (Letter 1058 or LT11). You have 30 days from the Final Notice to request a Collection Due Process hearing, which stops the levy. If that window has closed, you still have options — but you need to act immediately.

How to Get a Levy Released

A wage levy can be released in several ways: entering into an installment agreement, submitting an Offer in Compromise, demonstrating financial hardship (Currently Not Collectible status), showing that the levy is preventing you from paying basic living expenses, or filing for bankruptcy (which triggers an automatic stay). The fastest path is usually an installment agreement or hardship claim — these can result in levy release within days of submission.

Talking to Your Employer

Once the IRS contacts your employer, your employer is legally required to comply with the levy. There is no way to prevent your employer from knowing about the levy once the notice is served. However, once you have a release, the levy stops immediately. Your employer will stop withholding as soon as they receive the release from the IRS.

If you have received IRS notices or if your employer has already been contacted, call our office today. We have released IRS wage levies quickly for Dallas-area taxpayers, and in many cases we can stop the garnishment within days.

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