How to Tell If the IRS Is Preparing to Take Your Paycheck

If you’ve fallen behind on your taxes and think the problem will go away if you ignore the mail, think again. Wage garnishment is one of the most aggressive collection tactics the IRS can use. By the time it happens, your options are limited. But here’s the good news: the IRS usually signals its intentions before it touches your paycheck.

Here are four red flags that the IRS may be preparing to garnish your wages and what you can do to stop it.

1. You Received IRS Notice CP14

It starts with a letter. IRS Notice CP14 is the first formal alert that you owe taxes and haven’t paid. It outlines how much you owe, including any interest or penalties, and lets you know payment is due immediately.

Most taxpayers get this notice within a few weeks of filing if they owe money and haven’t paid. While it may seem routine, ignoring CP14 puts you on a fast track toward enforcement. It’s essentially the IRS clearing its throat before raising its voice.

What to do: If you receive this notice and can’t pay in full, don’t freeze. You can set up a payment plan online or call the IRS to discuss your options.

2. You Got a Final Notice of Intent to Levy (Letter 1058 or LT11)

This one’s serious. If the IRS sends you Letter 1058 or LT11, titled “Final Notice of Intent to Levy and Notice of Your Right to a Hearing,” they’re not bluffing. This is your official 30-day warning that wage garnishment or other asset seizure is next.

By law, the IRS must send this notice before taking any collection action, and it must come by certified mail. After 30 days pass with no action from you, they can start garnishing your wages, levying your bank account, or even seizing property.

What to do: This notice gives you the right to request a Collection Due Process (CDP) hearing. Filing for a hearing pauses enforcement temporarily and gives you a chance to explain your situation or propose a resolution.

3. A Federal Tax Lien Has Been Filed Against You

If you’ve ignored previous notices, the IRS may file a Notice of Federal Tax Lien. This is a public document that alerts creditors that the government has a legal claim to your property, including your income.

A lien itself does not trigger wage garnishment, but it’s often a precursor. It means the IRS has assessed your tax debt and is positioning itself to collect by any means necessary. In some cases, wage garnishment follows within weeks of a lien being filed, especially if other attempts to resolve the debt have failed.

What to do: Once a lien is in place, your credit score can take a hit, and refinancing or selling property becomes harder. However, paying the debt in full or entering into a formal payment plan can result in the lien being withdrawn or released.

4. You’ve Ignored Previous IRS Contact or Missed Certified Mail

Let’s be clear, the IRS doesn’t sneak up on you. If they’re planning to garnish your wages, you’ll typically get multiple letters, often escalating in urgency and detail. These may come in plain envelopes, certified mail, or even through phone calls.

If you’ve received but ignored prior contact, you’re likely on borrowed time. Wage garnishment doesn’t happen overnight, but it does happen quickly once the IRS has exhausted other avenues.

What to do: Don’t avoid contact. Ignoring the IRS is what exacerbates the situation. You can stop the garnishment by entering into an Installment Agreement, applying for an Offer in Compromise, or proving hardship under Currently Not Collectible (CNC) status.

Can the IRS Really Take Your Paycheck?

Yes, and unlike private debt collectors, the IRS doesn’t need a court order. It can take a large chunk of your disposable income (what’s left after mandatory deductions), often leaving you with little for rent, food, or other essentials.

Here’s the kicker: they can keep garnishing your wages until the debt is paid or resolved, which could take months or even years if you don’t intervene.

How to Stop Wage Garnishment Before It Starts

If you’ve spotted any of these signs, now is the time to act. You have options:

• Call the IRS directly or consult a tax professional.

• Request a hearing within 30 days of receiving the final levy notice.

• Negotiate a payment plan you can afford.

• Apply for relief through an Offer in Compromise or hardship claim.

Wage garnishment can be financially devastating, but it’s also avoidable, especially if you act early. The IRS is often more willing to work with you than you think. Just don’t wait for your paycheck to shrink before picking up the phone.

Did you find this helpful? Save it for later, and share it with anyone who might be facing tax trouble — a single warning sign could make all the difference.