Is the IRS Garnishing Your Wages in Denver?
Few IRS collection actions are more immediately disruptive than a wage garnishment. If the IRS has sent a Notice of Intent to Levy — or has already begun garnishing your paycheck — you are likely feeling the financial pressure right now. For Denver taxpayers, IRS wage garnishment can interfere with mortgage payments, rent in one of the country's most expensive housing markets, car payments, and basic living expenses. The good news: wage garnishment can be stopped, and it can be stopped quickly with the right representation.
How IRS Wage Garnishment Works
The IRS has broad authority to levy your wages, salary, and other compensation. Unlike a creditor, the IRS does not need to go to court to garnish your wages. The process works like this:
- Notice and Demand: The IRS sends you a bill for taxes owed.
- Final Notice of Intent to Levy: You receive a CP90, CP297, or Letter 1058 — this is a critical notice that gives you 30 days to respond before levy action begins.
- Levy Begins: If you don't respond within the 30-day window, the IRS contacts your employer directly and instructs them to withhold a portion of your paycheck each pay period.
Unlike a one-time bank levy, a wage garnishment is continuous — it hits every single paycheck until your debt is resolved or the garnishment is released. The IRS uses Publication 1494 to determine how much of your wages are exempt based on your filing status and number of dependents. In many cases, the exempt amount is surprisingly low, meaning the IRS can take a substantial portion of your take-home pay.
Denver and Colorado State Tax Context
Colorado taxpayers face a potential double garnishment risk. In addition to IRS wage levies, the Colorado Department of Revenue (CDOR) has its own authority to garnish wages for unpaid state income taxes. Colorado has a flat state income tax rate, and the CDOR is known for active collections — they can issue state wage garnishments that run concurrently with federal IRS garnishments.
Denver residents who owe both federal and Colorado state taxes may find that a significant portion of each paycheck is being taken simultaneously by two agencies. Coordinating resolution with both the IRS and the CDOR requires a tax professional who understands both federal and Colorado state collection procedures.
How to Stop an IRS Wage Garnishment
The fastest way to stop a wage garnishment is to take one of the following actions:
1. Pay the Full Balance
Paying your tax debt in full immediately stops the garnishment. The IRS releases the levy and notifies your employer, typically within a few business days.
3. Enter Into an Installment Agreement
If you establish an IRS installment agreement and the IRS approves it, the agency will generally release the wage garnishment. This is one of the most common ways Denver taxpayers stop garnishments without paying everything upfront.
3. Submit an Offer in Compromise
When the IRS accepts an Offer in Compromise application for processing, collection activities — including wage garnishments — are typically paused while the offer is under review. If approved, the OIC resolves your tax debt for less than the full amount owed.
4. Request Currently Not Collectible Status
If you can demonstrate to the IRS that your monthly income does not cover your basic living expenses, the IRS may place your account in Currently Not Collectible (CNC) status. While in CNC, the wage garnishment is released and the IRS pauses all collection activity.
5. File for a Collection Due Process Hearing
If you received a Final Notice of Intent to Levy, you have 30 days to request a Collection Due Process (CDP) hearing with the IRS Office of Appeals. Filing a timely CDP request puts an immediate hold on the garnishment while your case is reviewed — giving you critical time to negotiate a resolution.
6. Demonstrate Economic Hardship
Even after a garnishment begins, you can request a levy release by demonstrating that the garnishment is creating an economic hardship — meaning you cannot meet your basic living expenses. The IRS evaluates hardship claims using allowable expense standards, and an attorney can help you build the strongest case possible.
Why Denver Taxpayers Need a Tax Attorney
Acting quickly is essential with wage garnishments — every paycheck you delay costs you money. An experienced tax attorney can:
- Immediately review whether you have grounds for a CDP hearing or hardship release
- Contact the IRS on your behalf to negotiate a levy release while a resolution is being established
- Evaluate all available options — installment agreement, OIC, CNC, or CDP — and recommend the one that saves you the most
- Handle parallel Colorado CDOR issues so you're not doubling up on garnishments
- Ensure your employer receives the release promptly so the next paycheck is not impacted
Attempting to handle a wage garnishment without professional representation is risky. The IRS has experienced revenue officers and attorneys on their side. You deserve the same.
How Brightside Tax Relief Helps Denver Taxpayers
At Brightside Tax Relief, we have helped hundreds of taxpayers in Denver and across Colorado stop IRS wage garnishments and reclaim their financial stability. When you contact us, we act fast. We pull your IRS transcripts immediately, assess the status of your levy, and identify the fastest path to a release.
Denver's cost of living is high — rent, housing, transportation, and childcare all demand a full paycheck. We understand that losing a portion of your wages to the IRS every two weeks is not just stressful; it is genuinely destabilizing. Our team works urgently to get garnishments stopped so you can breathe again while we build a longer-term resolution plan.
We also coordinate with the Colorado Department of Revenue on state-level garnishments so you have one point of contact managing your full tax situation — not separate attorneys for federal and state issues.
Don't Wait for the Next Paycheck
Every day you wait is another day the IRS is taking money from your employer's payroll. Wage garnishments can often be resolved within days when you act immediately. The moment you suspect the IRS is about to garnish your wages — or after the first paycheck is hit — contact us.
Brightside Tax Relief offers a free confidential consultation for Denver taxpayers dealing with IRS wage garnishment.
📞 Call us now: 914-214-9127
🌐 Visit: brightsidetaxrelief.com
Stop the garnishment. Take back your paycheck. Let Brightside Tax Relief fight for you.
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