Hello;

I live in Texas and I just got a letter from the US Department of Justice stating i owe money to them. Anyway, they are giving me 60 days to call them and for me to set up a repayment plan in order to avoid them sending information to irs.(TREASURY OFFSET PROGRAM). If i dont call them , irs will start garnishing my income return.

First question, should i call them and set up a monthly payment plan with them?

Second question, if i set a payment, will they still garnish my income return every year even though i am making monthly payments?

Third question, should i just leave it like that and make no payment so they only take my income return every year?

Your help, suggestions and guidance will be greatly appreciated!

thank you Asktaxguru.com
thebigone

Here are the answers to your questions as follows:

1. "If I don't call them, irs will start garnishing my income return?"
No, the IRS will not immediately start garnishing your wages, but they will tend to withhold your Federal income tax refund and apply this amount to your outstanding tax liability.

2. "Should I call them and set up a monthly payment plan with them?"
If you afford to pay off the tax liability, the best course of action of course is to pay off the tax liability. Now, if you do not have the means then of course it makes sense to call the IRS and set up an installment plan. I am assuming that this tax liability does not arise from Trust funds that is from payroll tax liability, and the total outstanding tax liability is less than $10,000.

3. "If I set a payment, will they still garnish my income return every year even though i am making monthly payments?"
No, generally speaking that does not happen often.

4."Should I just leave it like that and make no payment so they only take my income return every year?"
No, this is the worst option, which I do not recommend.

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