Wage garnishment simply means the IRS has a levy on your wages and your employer must deduct a certain portion from your wages and remit it to the IRS, as a way of paying your tax.
The deductions range from 30% to 70% of the pay, based on factors such as the tax amount and the wage earner's dependents.
A levy means the IRS can seize the property, different from a lien which uses the property as security.
First you get a notice demanding payment in 10-30 days.
Should you fail to act, like contacting the IRS to arrange for monthly installments, the amount will grow as penalties and compounded interest are added on.
Then you will receive a "Final Notice" stating that the IRS will impose a levy on your wages.
The levy can be used to seize any real and personal property as well as wages, which is personal property in their books.
The notice will also include a reminder that you can hold a hearing if you wish to.
Ten days afterwards, the IRS will begin the wage garnishment procedures.
The amount of garnishment will be taken from the paycheck until the whole tax plus the imposed penalties are paid, or someone negotiates for a release.
After receiving a notice of past-due taxes, the best thing is to take action.
Meet with the IRS and pay the full amount if you can, work out a payment plan or offer in compromise, or prove that you just cannot pay your tax because of valid reasons.
Valid reasons include being affected by a disaster or calamity, death or serious illness in the family, IRS error, or incapacity to pay.