How to Stop a Wage Garnishment from the IRS in California
If the IRS Is Taking Your Paycheck—You Need to Act Immediately
Wage garnishment is one of the most aggressive tools the IRS uses to collect back taxes. If you’ve received a Form 668-W or your employer suddenly started withholding part of your paycheck, the IRS has officially levied your wages.
But this situation isn’t permanent—and it’s not hopeless. You can stop the garnishment, protect your income, and negotiate better terms if you act quickly and strategically.
This blog explains how IRS wage garnishment works in California, how to respond, and how to resolve your tax debt before further damage is done.
What Is IRS Wage Garnishment?
An IRS wage garnishment is a continuous levy on your wages. Unlike a one-time bank levy, this levy repeats every payday until:
- The tax is paid in full
- You enter into a formal resolution
- The IRS agrees to release it
- The Collection Statute Expiration Date (CSED) passes
It’s important to know the IRS levy vs lien differences, because while a lien is a claim against your property, a levy is actual enforcement—meaning your paycheck is directly impacted.
Related: IRS Levy vs IRS Lien – What’s the Difference?
How Much Can the IRS Take from Your Paycheck?
The IRS uses Publication 1494 to determine how much of your wages are exempt from garnishment. The exempt amount is based on:
- Filing status
- Number of claimed dependents
- Pay frequency
Everything above the exempt amount gets sent to the IRS.
Example: If you're single, paid biweekly, and claim one exemption, you might only keep ~$600–$700 per paycheck.
How Did This Happen?
Wage garnishment doesn’t happen overnight. You should have received:
- CP14 – Balance Due
- CP501, CP503 – Collection Notices
- Letter 1058 or LT11 – Final Notice of Intent to Levy
If you ignored these, the IRS proceeded with enforcement. That’s why responding to an IRS notice of intent to levy
is critical to prevent garnishment before it begins.
If an IRS lien filed against you has also occurred, your credit score and property rights may already be compromised, making it even more urgent to act.
How to Stop IRS Wage Garnishment in California
Option 1: Request a Levy Release
You or your representative can contact the IRS immediately and request a release by:
- Entering into an Installment Agreement
- Settling tax debt with an Offer in Compromise
- Using Currently Not Collectible status to stop levies when financial hardship makes payment impossible
Option 2: File for a CDP Hearing
If the garnishment started within 30 days of receiving LT11 or Letter 1058, you can file Form 12153 to request a Collection Due Process (CDP) hearing, which will:
- Pause the garnishment
- Give you time to propose resolution
- Preserve your right to Tax Court
Related: IRS Collection Appeals Program (CAP) vs CDP Hearings – What’s the Difference?
Option 3: Financial Hardship Defense
If the garnishment causes undue financial hardship, you can submit:
- IRS Form 433-A
- Paystubs, bank statements, and living expense documentation
- A request for levy release based on hardship
The IRS may agree to pause or reduce the garnishment while you resolve the debt.
Why California Taxpayers Need to Act Fast
California’s high cost of living makes wage garnishment especially brutal. Even a partial levy can:
- Cause you to fall behind on rent or mortgage
- Trigger credit card defaults
- Harm your family’s basic living standard
Don’t wait to fix this. The IRS won’t stop until they’re forced to.
That’s why avoiding IRS levies before they start is always the best defense. Acting early can save you from wage garnishments, bank levies, and asset seizures.
We Help California Taxpayers Stop IRS Wage Garnishments Fast
At Boulanger CPA and Consulting PC, we help clients:
- Respond to IRS wage levy notices immediately
- Submit levy release packages that get results
- Negotiate payment plans or settlement offers
- Prevent future levies and garnishments
Our clients also gain access to resources where they can explore more in Defend What’s Yours and learn strategies to stay protected.
Call (657) 218-5700 or schedule your emergency consultation at www.orangecounty.cpa
Frequently Asked Questions
What is IRS wage garnishment?
IRS wage garnishment is when the IRS orders your employer to withhold part of your paycheck to apply toward unpaid tax debt. It continues until the debt is resolved or the IRS releases the garnishment.
How much of my paycheck can the IRS take?
The IRS can garnish a significant portion of your wages, leaving only an exempt amount based on filing status and number of dependents. In many cases, it can take more than standard creditor garnishments.
How quickly can the IRS start garnishing wages?
After sending a Final Notice of Intent to Levy, the IRS can begin garnishment if you do not respond within 30 days.
How can I stop IRS wage garnishment?
Options include negotiating an installment agreement, submitting an Offer in Compromise, proving financial hardship, or requesting Currently Not Collectible status.
Can I appeal a wage garnishment?
Yes. You can request a Collection Due Process (CDP) hearing or use the Collection Appeals Program (CAP) to challenge the garnishment.
Does California law protect me from IRS wage garnishment?
No. IRS garnishments follow federal law. However, California residents may still have state wage garnishments from the Franchise Tax Board (FTB) in addition to IRS enforcement.
Can the IRS garnish wages if I’m self-employed?
Instead of garnishing wages, the IRS can levy business bank accounts or accounts receivable if you are self-employed and owe taxes.
Should I get professional help for wage garnishment?
Yes. IRS wage garnishment is financially devastating. A tax professional can stop or release the levy and help negotiate long-term resolution options.
📣 About the Author
Marc Boulanger, CPA is the founder of Boulanger CPA and Consulting PC, a boutique tax resolution firm based in Orange County, California and trusted by high-income individuals and business owners across Southern California.
He is the author of Defend What’s Yours: A California Taxpayer’s Guide to Beating the IRS and FTB at Their Own Game, available now on Amazon. The book offers a step-by-step plan for resolving IRS and FTB tax debt without losing your business, your home, or your peace of mind.
With over a decade of experience resolving high-stakes IRS and State tax matters, Marc brings strategic insight to complex cases involving wage garnishments, bank levies, unfiled returns, and six-figure tax debts. He is known for helping clients reduce or eliminate tax liabilities through expertly negotiated settlements and compliance plans.
Marc is a Certified Public Accountant licensed in California and Oklahoma and holds the designation of Certified Tax Representation Consultant. He is a member of the American Society of Tax Problem Solvers (ASTPS) — the national organization founded by the educators and practitioners who have trained thousands of CPAs, EAs, and tax attorneys in IRS representation strategy.
Every case is handled with discretion, proven methodology, and direct CPA-led representation — not call center scripts.
📍 Learn more at www.orangecounty.cpa or call (657) 218-5700.
Order the book on Amazon: Defend What’s Yours
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