Hi, It has been about two and a half years since I have posted here. During that time, I eliminated some debt, got Capital One off my back and raised my credit score. I event managed to get a new car loan, which came just in time because my 6-year-old car was on its last mile. Everything was fine until about a year ago, when my wife had to stop working due to illness. She will never be able to work again. She has filed for a disability claim with Social Security, but that is really a long, drawn-out process. During the past year, we have burned through savings and are living paycheck to paycheck. I owe money in back taxes, both to the IRS and the state tax commission. I set up payment plans with both, and fell behind with both. The IRS let me reinstate the payment plan, and I have kept up with that. However, the state tax commission is not being as forgiving . They have hired a collection agency. The CA sent a few bills and called my home during the day, while I was at work. I did not respond to the bills because frankly I just don't have the money and the debt is mine. Big mistake. They called my employer today and informed them they intend to garnish my wages. I have not received anything in the mail such as a judgement or a notice to go to court. The CA also asked my employer not to say anything to me about the impending garnishment, which I thought was strange. This whole thing seems a bit fishy to me. Anyway, I don't have health insurance and a sizeable portion of my income goes to pay for medications for my wife. These medicines literally keep her alive. If my wages are garnished, I just don't know what we will do. Any suggestions?
Has the state issued a tax lien against you?, or served a notice of intent to place lien? The best thing you could do is hire a tax attorney, if there is any way you can afford it. I know your situation is dire, but an attorney may be able to help hold off garnishment. An attorney may also know ways to reduce your tax liability, and find errors on the state's part. You should also do as much research as you can on your state's tax laws, and investigate how they proceed in situations like this. Beyond that, communication is the big thing. It may be too late now that it is in the hands of a CA. I would try to enter into a new agreement, and plead the hardship case of your wife's condition. I do not think the CA itself can automatically garnish your wages, (as the IRS can), but you will need to check your state's laws on tax collection. A Also, see if your state has a tax advocate department, they are the ones who help in a situation like this.
