We are extremely money dependent. I probably don't have to tell you that, but you may not realize just how quickly you will need it when it is gone. This is why the wage garnishment is such a powerful tool when wielded like a battle axe in a Lord of the Rings movie by the IRS.

What is a wage garnishment? Well, the name nails it. It is the withholding of part of your paycheck for the payment of an outstanding debt. This can occur when you lose a lawsuit, but is more common a tool the IRS employees. It is a powerful tool as well.

It's Friday, the 29th of the month and you are going to head out to have a drink with your co-workers. Paychecks are handed out around four. Hey, why is your only half of the normal amount? You hustle over to the HR department and are asked to close the door. Your told about the IRS garnishment notice. Before you start yelling at the HR people, keep in mind they have no choice but to honor it.

In the real world, you would already know about the wage garnishment before it happened. The IRS does not have to do much to place a garnishment, but they do at least have to give you notice it is coming. In fact, the Agency has to give you a 30 day notice to come to a hearing on the issue first. If you blew it off, well, then you need to look in the mirror when placing blame.

The real problem with wage garnishments is the amount of the check taken. It depends on your specific situation, how often you are paid, the number of dependents you have and so on. However the formula works out, the numbers are usually brutal. For instance, a single person with no dependents will have everything but $729 taken out of their check. Yes, you read that right. It is a big chunk of your income and will continue to be taken out until the tax debt is paid.

As you can imagine, this kind of financial constraint is too much for most people. Most usually end up contacting the agency and seeking another option. Sometimes they get relief. Sometimes they don't. This is why should always negotiate with the IRS before things get to the garnishment level.