If you can t pay federal taxes, you are not alone. The United States Constitution, adopted in 1787, authorized the federal government to lay and collect taxes, but required that some types of tax revenues be given to the states in proportion to population. Nowadays, this may seem trivial because taxes are just considered trouble.
Federal tax problems can stem from any number of things. You may not have enough money, you may not have put enough money saved up for the end of the year, and if you owe federal taxes it can be difficult to just make them go away. Especially since the IRS tax levies can happen suddenly. The same can be said about IRS tax levy garnishment on your wages, should you owe them money.
Using the powers granted to the IRS in the Internal Revenue Code, the IRS can levy upon wages, bank accounts, social security payments, accounts receivables, insurance proceeds, real property, and in some cases, a personal residence. However, in order to take a principle residence, the IRS must go to court and seek the permission of a federal magistrate to levy a house in which the taxpayer lives.
Paying federal taxes can be done by wage garnishment, or setting up payments with them. However levies can be frightening, so having a lawyer or outside help for something like that may help you. Federal tax rates vary from 10 percent to 39.6 percent of taxable income. Knowing what you make can also help you plan your repayment.
Firing an employee to avoid handling a levy may be a criminal offense. Federal law provides for a fine of up to 1,000 dollars and imprisonment for up to one year on an employer who willfully fires an employee in connection with a garnishment of the earnings of the employee. This should not be utilized as a way to get out of paying if you can t pay federal taxes.