Economic Hardship Protection Act looks to stop IRS wage garnishments
Good news on the IRS wage garnishments front as Congresswoman Bonnie Watson Coleman, D-N.J has introduced legislation that would extend a brake to those low-income Americans who are up for IRS wage garnishments and other levies. Her proposal looks to help those that are the most in need.
Those making under $29,000 dollars a year are considered to be 250 percent below the federal poverty. More specifically, the proposed legislation, The Economic Hardship Protection Act of 2015, looks to stop the IRS from issuing levies like wage garnishments, retirement account garnishments and property seizure against those who qualify most likely to experience economic hardship.
“If you’re making $29,000 dollars a year, roughly the amount that the IRS defines as economic hardship, every penny you get is going toward things that are keeping you above water; things like rent, groceries, and train fare to get you to and from your job,” Watson Coleman said in a statement. She continued, “Recklessly recouping the funds from already economically vulnerable Americans will be the final financial blow for these families. This bill ensures that the IRS uses the tools already at its disposal to responsibly manage tax collections.”
The current law requires the IRS any levies if they are determined that they might create an economic hardship on the taxpayer. The hardship doesn’t excuse the tax liability; it just causes the IRS to have to work with the delinquent taxpayer. If anything, the proposed legislation has caused the IRS to look closer and harder at those that may far into the category of financial hardship, before considering launching a levy against a taxpayer.
Unfortunately, until The Economic Hardship Protection Act of 2015 is approved the IRS will continue to issue levies and wage garnishments to those in bad financial shape. There’s no guarantee that it will pass, so finding a good tax attorney in Minneapolis like Tax Tiger can help you wade your way through the process and help ensure you don’t get taken advantage of. Tax Tiger has some of the best IRS tax attorneys and have helped clients save a ton of time, money and most importantly, stress.
Source: Congresswoman Introduces Bill to Limit IRS Wage Garnishments and Property Seizures – April 23, 2015 – Accountingtoday.com
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